Frequently Asked Questions #1
Q. Is Airborne planning to cut the amount of money spent on employee benefits?
A. No, the Company expects to spend more next year than this year. The project mandate is to slow down future cost increases to a more manageable and sustainable level.
Q. Why doesn't the Company just tell us what the new benefits are going to be and what it's going to cost us?
A. On important issues that affect employees directly, employees have said that they would like involvement in the decision-making process. Because of this the Company will be seeking employee input through a survey and other means such as an Employee Benefits Advisory group. Until this process is complete, decisions about the changes cannot be made.
Q. Can I provide input now?
A. Comments can be e-mailed to abx.benefits@airborne.com or written comments can be sent to the Benefits Department at ILN-9C / 2061-B.
Q. Is ABX still considering an on-base health care clinic for ILN employees?
A. The Company is currently conducting a financial feasibility study to determine if a health care clinic would be a cost-effective solution. The next steps will be based upon the outcome of this study. We expect the study to be complete by the end of January and a decision on the possibility of proceeding made by the end of first quarter.
Q. Will employees receive raises next year?
A. We still plan to review the compensation program, and appropriate adjustments will be announced in February. Obviously the Company's poor financial results impose some limitations on the money available for raises.
Q. Could the Company switch insurance companies and save money?
A. For the medical, dental, and vision benefits the Company is self-insured. This means that the Company pays only for the actual claims incurred by our employees and their families. Airborne pays an administrative fee to UnitedHealthcare, MetLife and Cole Managed Vision to administer the claims for Airborne. By using these companies, Airborne is able to use contracted provider networks that offer significant discounted savings.
Q. What is the Employee Benefits Advisory group?
A. To provide input on potential solutions, several employees will be asked to participate in an Employee Benefits Advisory group. Employees who participate in this group should be exemplary employees who have a good working understanding of employee benefits. The employees will need to have excellent communication skills and be willing to dedicate time and effort to the process. Employees will be selected from all parts of the Company, and we anticipate approximate 15 to 18 employees will participate. If you feel that you or someone in your workgroup meets these criteria and is willing to participate, please let your Manager know.
Q. Will these changes affect the pilots and other unionized groups?
A. The cost of health care is affecting everyone. The Company will be addressing this with the pilots' union at the collective bargaining table. Additionally, the Company will be addressing the cost of benefits with other unionized groups.
Q. If we had a union, the Company could not make these changes.
A. Unions are facing the same issues as non-union employers. Many unionized benefits plans are cutting benefits and increasing employee contributions in an effort to control costs. Having a union does not solve the problem of escalating health care costs and would not insulate you from these increased expenses. For example, at Northwest Airlines the contract language allows Northwest to make changes to the benefits without the union's okay.
Q. How do I report workers' compensation fraud?
A. You can call the hotline at (800) 78-CRIME or you can contact the ABX Workers' Compensation department at ext. 2388.
Q. Would the Company consider offering benefits we currently don't have?
A. Yes, this will be a comprehensive review of the benefit program, and we will consider adding voluntary benefits not currently offered to employees.
Q. Would the Company consider adding a cafeteria plan for employees or a medical flexible spending account?
A. Yes.
Q. Why are we changing the benefits now? Didn't you say in 1999 when the PPO was introduced that it would help control costs?
A. The introduction of the PPO plan has resulted in significant savings for employees and the Company. However, the health care industry has changed, and once again we are seeing health care costs increase at double-digit rates–far faster than inflation. It's necessary to make changes to bring the escalating medical costs under control.
Q. Why not eliminate STAR instead as a way to reduce cost?
A. We believe that it is important to provide a cash incentive program that rewards employees for excellent customer service. Since the inception of the STAR program, the Company has seen record on-time performance for our airline and trucking operations. This improved service allows Airborne couriers to meet their service commitments to our customers.
Outstanding service along with competitive pricing is what allows us to attract new customers and keep existing customers. Growing our business is good for everyone. Airborne shareholders benefit from higher stock prices, employees benefit from improved job security, and our customers benefit from superior service at a great value.
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