Whirlpool suspends 39 workers, says they lied about smoking



INDIANAPOLIS - Smoking can be hazardous to your health, and it's turning into a bad career move, too


A Whirlpool Corp. factory in Evansville, Ind., has suspended 39 workers who signed insurance paperwork claiming they don't use tobacco and then were seen smoking or chewing tobacco on company property. Now, some could be fired for lying, company spokeswoman Debby Castrale said.

As annual health care premiums rise more than 10 percent a year, many companies are trying to rein in costs by encouraging healthy living.

"I can't think of a client of ours who has not shifted their focus to controlling the cost of their health care plan," said Indianapolis benefits lawyer Mike Paton.

Some employers have developed wellness programs to motivate employees, while others ask employees to state on benefits forms whether they use tobacco.

Whirlpool, based in Benton Harbor, Mich., uses financial incentives to encourage U.S. workers and their dependents to abstain from tobacco use, spokeswoman Jill Saletta said. The specifics vary according to location.

In Evansville, the 1,500-employee factory charges tobacco users an extra $500 in annual health insurance premiums. The refrigerator factory has levied the extra premium since 1996, and it depends on employees to honestly fill out forms. It doesn't mandate blood tests to detect nicotine or trail employees outside work, Castrale said.

http://news.yahoo.com/s/ap/20080423/ap_on_bi_ge/smokers...faAGQJ1Rdtos.gOs0NUE

quote:

Whirlpool, based in Benton Harbor, Mich., uses financial incentives to encourage U.S. workers and their dependents to abstain from tobacco use, spokeswoman Jill Saletta said.

They should replace the word "incentive" with something else. Maybe punishment?

"And their dependents." I believe there have been questions here wondering how/when policies will expand to other members. Well, now we know. At least as far back as 1996.

It's pretty clear the employees either lied or forgot to inform their employer that they took up smoking later. They are at fault. You can't blame Whirlpool other than there's no mention of them charging fat people, blacks, motorcycle riders, suntanners, drinkers, casual sex imbibers, families with bad genes,......higher premiums.

Where are the statistics to support these charges?

quote:

Originally posted by Bruce:
Where are the statistics to support these charges?

Of what, that they cost emplorers $500 a year? It would be easy enough to check out with their insurance provider.

I wonder if Whirlpool has considered their pension savings? I'll bet NOT.

What pension savings? I bet they went to a "cash basis" or 401(k) plan.

I would think that smokers, who contribute millions of dollars to health care thru high state taxes and payment thur the Master Settlement Agreement should be getting credits, not additional charges.

At the same time, the insurance companies do issue reports to employers as to the charges they pay to medical providers, but NO one isolates those charges between smokers and non-smokers. No company offsets the productivity of an employee over the length of their employment and the cost of keeping that employee alive.

How many times have the medical payments or liability portion of Auto insurance ever been applied to the medical damages of auto accidents? When I suggested these coverages after an auto accident I was treated as uninsured.

quote:

Originally posted by smallbird:
What pension savings? I bet they went to a "cash basis" or 401(k) plan.

From a quick search:
"The company offers a pension plan of 2% of monthly base salary times number of years of service. For those who contribute to the 401k plan, the company will match up to 5% of contributions.

Whirlpool provides employees with a $75 credit each year which can be used for fitness and weight-loss programs. The company also offers 100% tuition reimbursement for approved undergraduate and graduate degrees.

Updated September 1, 2007"

quote:

Originally posted by squeezer:

quote:

Originally posted by smallbird:
What pension savings? I bet they went to a "cash basis" or 401(k) plan.

From a quick search:
"The company offers a pension plan of 2% of monthly base salary times number of years of service. For those who contribute to the 401k plan, the company will match up to 5% of contributions.

Whirlpool provides employees with a $75 credit each year which can be used for fitness and weight-loss programs. The company also offers 100% tuition reimbursement for approved undergraduate and graduate degrees.

Updated September 1, 2007"

Thank you for that information squeezer. $75 credit on what? 100% tuition reimbursement up to a maximum of what? The 2% of monthly base salary for current employees...what about new employees? And of course they'll match employee contributions to make sure they pass their "discrimination testing" for highly compensated employees (the CEO and all those others who make millions).

quote:

Originally posted by smallbird:
Thank you for that information squeezer. $75 credit on what? 100% tuition reimbursement up to a maximum of what? The 2% of monthly base salary for current employees...what about new employees? And of course they'll match employee contributions to make sure they pass their "discrimination testing" for highly compensated employees (the CEO and all those others who make millions).

As far as pensions, I'm going to assume by the way it was written that new employees don't get one.

They only match 5%, not half.

I've never belonged to a fitness club, but I don't think $75 would go too far.

Don't know on tuition, but I'd say judging from the $75 credit, it doesn't amount to much.

IRS allows a maximum tax-deductible tuition reimbursement plan of something around $6,000 (don't have my Master Tax Guide available at the moment). Anything in excess of that amount would NOT be reimbursed. I'm thinking most large colleges and universities charge way more than $6,000 per year for tuition...I might be wrong on this.