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Salamanca co. expects PACT Act impact

Mon, Mar 29th 2010 12:00 am
A Cattaraugus County business anticipates a loss of jobs due to the new federal PACT Act, which would limit the shipment of cigarettes bought online and delivered via the U.S. Postal Service.

Synergy Business Management, located in Salamanca, has filed a notice with the state Department of Labor that it will lay off an undetermined number of workers effective June 30. The company, which employs 130 related to its tobacco business, specifically cited the passage of the PACT Act in the disclosure to the Labor Department. A spokesperson said Synergy Business is still sorting out its action plan and made the filing under the state's WARN law, which requires a 90-day notice on mass layoffs.

The PACT Act would prohibit the U.S. Postal Service from delivering cigarettes ordered over the Internet. Supporters say it will lessen tax evasion and help further cut down on youth access to tobacco. The measure has been passed by both houses of Congress in recent weeks and awaits the signature of President Obama.

Synergy Business Management is not affiliated with the Seneca Nation of Indians. The Senecas lobbied hard against the legislation, saying it will result in the loss of some 1,000 jobs in Western New York and that its tobacco business is in compliance with government regulations.