Memorandum+For+Employees

Feb. 15, 2012

Memorandum For All Employees

Subject: Changes to Employee Health Care Plan

The health, welfare and financial security of our employees and our community has always been a priority for our company. Over the years despite rising costs we have worked hard to make sure our employees have access to quality health care, and it is important that as a company we make decisions which will continue to serve the needs of our employees and the community for years to come. It is because of these costs that we have decided that some changes have to be made in your health care package.

The first change involves our company's health care package. The changes involved may reduce your health care coverage but have not increased your cost. Careful consideration was taken into account in making this change thereby avoiding the need to reduce the current number of dedicated workers in the company. If we were to keep the current health care plan offered by the company we would be forced to significantly increase the employee contributions to the health plan or significantly reduce the number of current and future positions. The difficulty of selecting a plan which may provide a reduced level of medical coverage is what we view as the most logical course of action to provide our community and employees with the salary and employment needed during these tough economic times. The changes to your Health Care Plan will tentatively begin on March 15, 2012.

The management fully understands that you will have questions and concerns about this matter and felt that it was in your best interest to reduce the health coverage rather than reducing the workforce. It is important that you understand the changes and how they may differ from your current coverage level; therefore, enclosed with this letter is a packet describing the changes, and your manager will also be able to address any questions or concerns that you have. In addition, more information is available from our Human Resources office.

In additon to the changes in our health care package, we have partnered with several local health clubs that will provide discounted membership for employees and their family that would like to improve and maintain a healthy life style. Please contact the Business Finance office for the list of health clubs offering the discount membership. Finally, in trying to cut costs we have determined that the free snack policy needs to change as well. Unfortunatly, free snacks will no longer be available for employees. The money saved by this change in policy will be devoted to maintaining the costs of health care coverage. As a positive, this will also help in the fight to lead a healthier lifestyle in the hopes to keep helath costs down.

We hope that everyone understands the changes that have to be made to keep the company in business and to keep our most valuable resources, our employees, fully employed at their current jobs.

Sincerely,

P. Goody