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Bank to close office, lay off 103

April 5, 2011

PAWTUCKET — Bank of New York Mellon Corp. has notified state labor officials that it plans to lay-off 103 employees as it closes its Pawtucket office and moves to another site in Massachusetts.
The New York-based financial services company told state officials under the federal Worker Adjustment and Retraining Notification Act that the workers at the office at 100 Freight St. will lose their jobs in three phases, between June 6 and Oct. 30. The bank acquired the office last July.
According to published reports, BNY Mellon said the Pawtucket office will be closed completely in October after the move to an existing facility in Westborough, Mass.
According to news reports, a company spokesman for BNY Mellon said that the lease for the Pawtucket office was expiring and with space available at the Westborough facility, the consolidation was a logical and fiscally sound decision. The Westborough office has about 900 employees.
The spokesperson said that more than 200 of the approximately 300 employees have chosen to move to Massachusetts and those who are not relocating will be provided with a severance package.
John T. Gannon, Pawtucket's director of administration, said the news about the closure of the Freight Street office was “disappointing but not unexpected, as this process has been under consideration for probably more than a year as BNY Mellon was preparing to purchase PFPC Inc.”
Gannon noted BNY Mellon had been in talks with the city last fall and that discussions had also been arranged with the state Department of Economic Development to see what it might take to keep the jobs in Pawtucket.
However, he added that with an expiring lease here and excess vacant capacity at a facility BNY Mellon has in Westborough made the relocation decision “all but inevitable.”
“We still think it's a great facility,” said Gannon, citing its state-of-the-art security, fire safety, Internet, redundant power back-up, modern build-out, parking for hundreds of vehicles, easy I-95 access, and proximity to a U.S. Post office branch. He said the city will provide whatever assistance is necessary to the landlord to help bring in new tenants.
City Tax Assessor David Quinn said that PFPC Inc., whose sale to Mellon was finalized last summer, invested approximately $6 million in upgrades to the former mill facility. He noted that a tax stabilization agreement begun in 2003 had reached 100 percent taxable levels as of 2010, and that commercial property taxes remain the responsibility of the landlord, Kenwood Realty.


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