Apr. 24—SPRINGFIELD — A couple of years ago, Ed Leventhal still looked like he was in his 50s. But he actually was in his early 70s, and he had a problem.
He didn't want to work forever, and he needed a buyer for the two companies housed in the old Vining Industries plant beside the railroad tracks on Burt Street.
He's been part of Valco, a metal fabricating company for nearly 40 years, and A & E Coating, a metal coating business he operated with son Adam, for more than 20.
But there weren't any buyers — not in his family and not in his companies.
And when Leventhal considered an independent buyer, the man who has served two different times in the Springfield City Schools Board and is otherwise active in the community didn't like what he saw.
"Sometimes, they either want to consolidate it into where they're at or bring their own people in or change the culture. And that's not something I wanted to do."
His top priorities were to make sure the companies remained in Springfield and the 80-plus employees could continue in the working environment they had.
His solution?
To sell the company to them through an Employee Stock Ownership Plan (ESOP).
The first anniversary of that sale was celebrated at a lunchtime gathering last month at Mother Stewart's Brewery.
A Bingo Game included the traditional jeers and accusations of fixes when the winners were announced. But the words on the Bingo cards — eligibility, shareholders, leadership — were part of the company's ongoing project to bring everyone up to speed on ESOPs and how they can reach their potential.
ESOPs have complexities that include an independent trustee to represent employee interests in management decisions; board members interviewed and hired for their expertise in the business; and oversite through the United States Department of Labor. But Megan Watson, who does Human Resources work, along with accounts receivable and payable, said little on the surface has altered over the past year.
"The leadership team that we had in place — that chain of command — has not changed." (At 76, Leventhal continues on.) But as we're learning more, we're training more of the leaders" — and passing on more information to employees.
"We've always been pretty open about where we are, how we're doing," she said, but when new machinery is introduced, there's more detailed information about its purpose.
"How is this going to benefit us? How are we going to work more efficiently Or how's the quality going to improve? Or do we have new customers who are going to benefit from it?
"The better we do, the better we perform," she said, "the better we are in the long run financially."
One of the key benefits to employees is their vesting in company stock that will supplement retirement funds from Social Security and a 401K program the company contributes to and is continuing under the ESOP format.
But there's some disagreement among employees about whether everyone's attitude will be as fully invested in their work as their money is in their company stock.
"I can't speak for anybody else, but myself, I give 110 percent every day," said press breaker operator Ed Ledent. Like Dave Denney, who has spent 16 years in shipping, he thinks that for the new organization to succeed, more people have to do the same.
"It really makes you pay attention to everyone around you," said Denney, who nonetheless is happy with the transition to an ESOP. "Because if someone's goofing off, they're taking money out of your pocket."
Michael Hughes, a senior metal fabricator who will retire June 1 after 16 years with the company, is hopeful, but sees a potential glitch.
"A lot of younger people don't see the future, as I didn't."
Joe Guinn, 45 and with the company for 10 years sees his point.
Younger employees "aren't thinking, 'I have to keep doing a good job, my retirement would be nice.' They're thinking what am I doing this weekend?"
Across the table, press brake operator Cody Evans, who has been with the company for five years, says those attitudes can change over time.
Now 30 and with the company for five years, he said that at some point, "you start realizing that one day this is going to end and I need to make sure that I'm secure." A greater sense of connection with the company "is a great thing to help with that."
Now 42, Adrian Watson, who grinds and sandblasts metal products, agrees.
"I've got two kids now, and I've got to make sure they're squared away for the future, not just me."
He also has a perspective about the realities of work that people wrestle with in any work setting.
While in the Army," I did a lot of other things that probably a lot of others did not do, but we did it. You know, work is work."
"We're employee-owned, so why not take it for the long haul."
Leventhal sees encouraging younger employees to look over the horizon and see the potential payoff as part of the new organization's responsibility and mission.
"We've had employees that have left because they can get $1 more an hour or $2 more, which I understand," he said.
But when he meets with them he asks them to think again. If, for instance, they have accumulated $6,000 toward their retirement and lose it by leaving the company before being vested, it will take them 2,000 additional hours at a job that pays $3 an hour more to replace what they are leaving on the table.
Clearly the longstanding relationship between Leventhal and many company employees has contributed to a smooth transition.
"I wasn't worried about the big announcement because I knew Eddie was too loyal to the employees and the community to sell the company," said sales engineer Bob Wilkerson, now in his second stint with the company.
"At first, I didn't know what to expect," added Mike Bell, a fork lift operator for 10 years. "But after a meeting with everybody last year about this time, and understanding what Eddie was saying, I thought it was a really, really good idea."
Leventhal's own hope is that when other Springfield companies face transitions that could take their businesses elsewhere, they, too, will consider ESOPs as a way of keeping their facilities and employees in town.
