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Midnight Industries manufactures residential home lighting. The company's president, Laura Jacobs, is convinced that she must get concessions from the workers if Midnight is to
Midnight Industries manufactures residential home lighting. The company's president, Laura Jacobs, is convinced that she must get concessions from the workers if Midnight 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 percent but she wants the total compensation package to cost percent less. The current costs are shown in Exhibit A Exhibit A Current Compensation Costs Average annual salary $ Average hourly salary $ Average cost of benefits per employee see calculation below $ Total Compensation salary benefits $ Hours worked per day Benefits Average Employer Cost per Employee per Year Canada Pension Plan $ Employment Insurance $ WorkSafe BC $ Pension Contributions $ Group Insurance life health, disability $ Shortterm disability $ Longterm disability $ Discount program $ Miscellaneous payments termination pay, moving expenses, etc. $ Paid vacations average is days $ Paid statutory holidays days $ Paid breaks minutes $ Paid leaves jury duty, bereavement, etc. $ Employee Savings Plan Contribution $ Education Reimbursement Program $ Employee Assistance Program $ Special wage payments $ Total $ Your assistant has surveyed other companies that are obtaining concessions from employees. You also have data indicating employee preferences for different benefits Exhibit B Exhibit B: Employee Benefit Priorities Benefit Employee Importance Healthcare Vacation Life Insurance Longterm disability shortterm disability Paid breaks Dental plan Profit sharing Savings plan contributions Discount on goods Based on all this information, you have two possible benefit packages that you can propose, labelled "Option and "Option Exhibit C EXHIBIT C: Two Possible Packages for Cutting Benefit Costs Option Annual $ employee deductible for healthcare and dental plan Employees must contribute of base salary to pension plan Require one year of service before eligibility for discount on goods and contribution to the savings plan Option Improved claims processing for insurance reduce paid sick leave by two days eliminate one paid break Exhibit D: Cost Cutting Savings Costcutting strategy Savings as of benefit cost Require one year of service before eligibility for discount on goods and contribution to the savings plan Improved claims processing for insurance Questions Given the data in Exhibits A and B and the information obtained from various insurance carriers and other information sources Exhibit D cost out these packages. Which package should you recommend to Jacobs? Why? Which option would require less employee input because it doesn't affect them much? You must complete and submit your costing model in Excel. Indicate your answers to the three questions in your Excel file. There are some deliberately ambiguous points in the case. However, if you read the case carefully, you will come up with some relevant questions your classmates can address in the assignment discussion forum. In this case, you must make assumptions in one or two places. Just ensure to state your assumptions clearly in your answers. please help me with this
Midnight Industries manufactures residential home lighting. The company's president, Laura Jacobs, is convinced that she must get concessions from the workers if Midnight 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 percent but she wants the total compensation package to cost percent less. The current costs are shown in Exhibit A
Exhibit A Current Compensation Costs
Average annual salary $
Average hourly salary $
Average cost of benefits per employee see calculation below $
Total Compensation salary benefits $
Hours worked per day
Benefits Average Employer Cost per Employee per Year
Canada Pension Plan $
Employment Insurance $
WorkSafe BC $
Pension Contributions $
Group Insurance life health, disability $
Shortterm disability $
Longterm disability $
Discount program $
Miscellaneous payments termination pay, moving expenses, etc. $
Paid vacations average is days $
Paid statutory holidays days $
Paid breaks minutes $
Paid leaves jury duty, bereavement, etc. $
Employee Savings Plan Contribution $
Education Reimbursement Program $
Employee Assistance Program $
Special wage payments $
Total $
Your assistant has surveyed other companies that are obtaining concessions from employees.
You also have data indicating employee preferences for different benefits Exhibit B
Exhibit B: Employee Benefit Priorities
Benefit
Employee Importance
Healthcare
Vacation
Life Insurance
Longterm disability
shortterm disability
Paid breaks
Dental plan
Profit sharing
Savings plan contributions
Discount on goods
Based on all this information, you have two possible benefit packages that you can propose, labelled "Option and "Option Exhibit C
EXHIBIT C: Two Possible Packages for Cutting Benefit Costs
Option
Annual $ employee deductible for healthcare and dental plan
Employees must contribute of base salary to pension plan
Require one year of service before eligibility for discount on goods and contribution to the savings plan
Option
Improved claims processing for insurance
reduce paid sick leave by two days
eliminate one paid break
Exhibit D: Cost Cutting Savings
Costcutting strategy Savings as of benefit cost
Require one year of service before eligibility for discount on goods and contribution to the savings plan
Improved claims processing for insurance
Questions
Given the data in Exhibits A and B and the information obtained from various insurance carriers and other information sources Exhibit D cost out these packages.
Which package should you recommend to Jacobs? Why?
Which option would require less employee input because it doesn't affect them much?
You must complete and submit your costing model in Excel.
Indicate your answers to the three questions in your Excel file.
There are some deliberately ambiguous points in the case. However, if you read the case carefully, you will come up with some relevant questions your classmates can address in the assignment discussion forum.
In this case, you must make assumptions in one or two places. Just ensure to state your assumptions clearly in your answers.
please help me with this
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