Press Release
The Wellness Plan offers an Early Buy-out to Reduce their Budget approximately $1 million over a Ten Year Period!
Detroit, MI April 23, 1998:
The Wellness Plan projects approximately 80 employees who have five or more years of service will accept an early buy-out offer this year. As a cost containment tool, the corporation is offering a one-time incentive to employees who meet defined eligibility requirements. The corporation expects a salary budget reduction between $1,000,000 in ten years. The plan, known as the "ESP" Employee Severance Plan, was structured by the Human Resources Department, Senior Management, the Board of Trustees, and Employers Preferred Corporation, a consulting firm from Southfield, MI specializing in such plans.The corporation’s objective is to reduce the number of staff earning the highest salaries. Although not all employees will be replaced, those that are replaced will be hired at entry level wages and salaries. "This is part of a comprehensive, long-term solution to a growing fiscal crisis," said Senior Management.
The Wellness Plan faces a budget deficit, and staff is in the process of recommending ways to balance the budget. After studying other early buy-out plans, The Wellness Plan decided to adopt a plan specifically designed to address corporation objectives. The consulting firm EPC has implemented over 200 such plans throughout the country. The firm’s costs are more than off-set by the savings to the corporation and all administrative aspects of the plan are provided by EPC.
###
Return to News Articles page