1. Cost out these packages given the data in Exhibits 9.9 and 9.10 and the information obtained from various insurance carriers and other information sources (Exhibit 9.12).

2. Which package should you recommend to Jacobs? Why?

3. Which of the strategies do you think will require less input from employees in terms of their reactions?

Lightning Industries Lightning Industries manufactures tamps for residential homes. The president of the company. Jacobs, convinced that she must get concessions from the workers ir Lighting is to compete effectively with increasing foreign competition. In particular, Jacobs is displeased with the cost of employee benefits. She doesn't mind conceding a competitive wage increase maximum 3 percents, but she wants the total compensation package to cost percent less. The current costs are shown in Bibit EXHIBIT 9.9 Current Compensation Costs $3679 Average yearly wage Average hourly wage Dollar value of yearly benefits, per employee Total compensation wages plus benefits Daily average number of hours paid $ 1758 $12923 Sew49692 Average Employer Cost Employee 1. Legally required benefits GIUSELEN a Canada Pension Plan $ 2.400 5 $ Employment insurance c. Workers Compensation 2. Pension group insurance, disability a. Pension plan contributions b. Group insurance life, health, dental c. Short term disability d. Long-term disability e Discounts on goods and services purchased from company by employees Miscellaneous payments termination paywances moving expenses, etc.) 3. Payments for time not worked a. Paid vacations (6 days average Paid statutory holiday days Paid rest periods inch periods, washup time, clothes change timerradime, etc. 10 minutes d. Payments for wrywiness duty voting time, love for Bereavement of other personal reasons 4. Other items Contributions to employee savingsplan b. Tuition reimbursement plan (50%) $164 CEAR $ d. Special wage payments ordered by courts, payments to union stewards Your assistant has surveyed other companies that are obtaining concessions from employees data from a consulting firm that indicates employee preferences for different forms of benefits Based on this information, you have two posible concession packages that you can proposta Option and Option 2 - PUTHENTIAL COMMENTS IN THE UNE EXHIBIT 9.10 Benefit Preferences IMPORTANCE TO WORKERS 29 32 72 BENERT TYPE OR METHOD OF ADMINISTERING Pension Healthcare Holidays Paid vacation Life insurance Long-term disability Short-term Paldres periods, lunch breaks, et Dental Prot sharing Contributions to singsplan Discount on goods Fair treatment in administration 55 51 100 EXHIBIT 9.11 Two Possible Packages for Cutting Benefit Costs Option 1 implement deductible ($50 annually for Healthcare plan Dental plan Reduction of benefit Elite 10 minute paid break Coordination with legally required benet Integrate CPP with Lighting industries pension plan bat CP payout from pension bene Option 2 improved claims processing for Short term day Long term Require probationary period one year before eligible for Discounts on goods . Contributions to employee savingsplan Coinsurance (30 Healthcare plan CHAPTEREMOS Questions 1 Cost out these packages given the data in Exhibits 99 and 9:30 and the information and from various insurance carriers and other information sources (912) 2. Which package should you recommend to Jacobs? Why? 3. Which of the strategies do you think will requireless input from employees informs of section! EXHIBIT 9.12 Analysis of Cost Implications for Different Cost Cutting Strategies Lightning improved claims processing for - Short-term disability . Long-term disability Require probationary period one year before eligible for Discounts on goods . Contributions to employee savingsplan Consurance Healthcare plan GLASSES Questions 1 Cost out these packages given the data in Exhibits 99 and 90 and the information obtained from various insurance Carriers and other information sources Exhib12) 2. Which package should you recommend to Jacobs? Why? 3. Which of the strategies do you think will require less input from employees in terms of their reactions? EXHIBIT 9.12 Analysis of Cost Implications for Different Cost Cutting Strategies Lightning Industries SAVINGS AS SOF BENEFIT COST COST SAVING STRATEGY Deductible (550 Healthcare plan Dental plan 10 15 10 10 Require probationary period before eligible fone year Discount on goods and services . Contributions to employee savings plan Improved hims processing Short term disability Long term disability Coordination with legally required benefits: Integrate CPP with Lightning Industries pension plan 20 5 THEMPLOYEE CONTRIBUTIONS DETERMINING INDIVIDUAL PAY BIT The Pay Model Lightning Industries Lightning Industries manufactures tamps for residential homes. The president of the company. Jacobs, convinced that she must get concessions from the workers ir Lighting is to compete effectively with increasing foreign competition. In particular, Jacobs is displeased with the cost of employee benefits. She doesn't mind conceding a competitive wage increase maximum 3 percents, but she wants the total compensation package to cost percent less. The current costs are shown in Bibit EXHIBIT 9.9 Current Compensation Costs $3679 Average yearly wage Average hourly wage Dollar value of yearly benefits, per employee Total compensation wages plus benefits Daily average number of hours paid $ 1758 $12923 Sew49692 Average Employer Cost Employee 1. Legally required benefits GIUSELEN a Canada Pension Plan $ 2.400 5 $ Employment insurance c. Workers Compensation 2. Pension group insurance, disability a. Pension plan contributions b. Group insurance life, health, dental c. Short term disability d. Long-term disability e Discounts on goods and services purchased from company by employees Miscellaneous payments termination paywances moving expenses, etc.) 3. Payments for time not worked a. Paid vacations (6 days average Paid statutory holiday days Paid rest periods inch periods, washup time, clothes change timerradime, etc. 10 minutes d. Payments for wrywiness duty voting time, love for Bereavement of other personal reasons 4. Other items Contributions to employee savingsplan b. Tuition reimbursement plan (50%) $164 CEAR $ d. Special wage payments ordered by courts, payments to union stewards Your assistant has surveyed other companies that are obtaining concessions from employees data from a consulting firm that indicates employee preferences for different forms of benefits Based on this information, you have two posible concession packages that you can proposta Option and Option 2 - PUTHENTIAL COMMENTS IN THE UNE EXHIBIT 9.10 Benefit Preferences IMPORTANCE TO WORKERS 29 32 72 BENERT TYPE OR METHOD OF ADMINISTERING Pension Healthcare Holidays Paid vacation Life insurance Long-term disability Short-term Paldres periods, lunch breaks, et Dental Prot sharing Contributions to singsplan Discount on goods Fair treatment in administration 55 51 100 EXHIBIT 9.11 Two Possible Packages for Cutting Benefit Costs Option 1 implement deductible ($50 annually for Healthcare plan Dental plan Reduction of benefit Elite 10 minute paid break Coordination with legally required benet Integrate CPP with Lighting industries pension plan bat CP payout from pension bene Option 2 improved claims processing for Short term day Long term Require probationary period one year before eligible for Discounts on goods . Contributions to employee savingsplan Coinsurance (30 Healthcare plan CHAPTEREMOS Questions 1 Cost out these packages given the data in Exhibits 99 and 9:30 and the information and from various insurance carriers and other information sources (912) 2. Which package should you recommend to Jacobs? Why? 3. Which of the strategies do you think will requireless input from employees informs of section! EXHIBIT 9.12 Analysis of Cost Implications for Different Cost Cutting Strategies Lightning improved claims processing for - Short-term disability . Long-term disability Require probationary period one year before eligible for Discounts on goods . Contributions to employee savingsplan Consurance Healthcare plan GLASSES Questions 1 Cost out these packages given the data in Exhibits 99 and 90 and the information obtained from various insurance Carriers and other information sources Exhib12) 2. Which package should you recommend to Jacobs? Why? 3. Which of the strategies do you think will require less input from employees in terms of their reactions? EXHIBIT 9.12 Analysis of Cost Implications for Different Cost Cutting Strategies Lightning Industries SAVINGS AS SOF BENEFIT COST COST SAVING STRATEGY Deductible (550 Healthcare plan Dental plan 10 15 10 10 Require probationary period before eligible fone year Discount on goods and services . Contributions to employee savings plan Improved hims processing Short term disability Long term disability Coordination with legally required benefits: Integrate CPP with Lightning Industries pension plan 20 5 THEMPLOYEE CONTRIBUTIONS DETERMINING INDIVIDUAL PAY BIT The Pay Model