Naperville Business Attorney on the End of Beer-for-Life Retirement Perk

retirement, Naperville business law attorneyIn order to attract quality employees to your company, you need to be able to offer them a number of things. Your work environment should be a positive one and your workers must be given the tools to complete their assigned tasks in a reasonable manner. Compensation, of course, is also very important and represents more than just an hourly wage. To remain competitive, you may need to offer comprehensive health insurance plans or medical savings accounts. Setting your company apart, however, may also require you to provide retirement packages that allow your employees to enjoy the benefits of working for your company for many years into the future.

As an experienced business law attorney, I understand that today’s economic climate makes it harder than ever before to provide fully-funded retirement plans for your employees. With that in mind, you may want to consider additional, creative ways to reward your workers for dedicating their career to your company.

Beer for Life

The Labatt Brewing Company has been a Canadian staple for more than 150 years with breweries located throughout Canada. Its products have long been imported for consumption in the United States, and many have developed a following and fierce loyalty in the United States.

Employees at Labatt’s brewery in Edmonton, Alberta, have enjoyed a rather unique perk since the location opened in the early 1960s. As part of the local union contract, each employee and retiree receives a free 12-pack of a Labatt product every week, a perk that continues for as long the retiree is alive and beyond. Once the pensioner dies, his or her spouse is entitled to the free beer.

Difficult Economic Conditions

The brewery recently told its 100-plus employees that the free-beer-for-life perk will be cut in half in 2018 and eliminated altogether by the following year. In a letter to workers, Labatt officials blamed the cuts on the costs of maintaining full benefits packages for workers and retirees. Union representatives and employees, however, were not convinced of the move’s necessity. “In the cost of doing business, it’s such a small, small thing,” said the local union president.

The union president also said that the free beer represents a form of person-to-person marketing. An employee or retiree could bring a case of Labatt’s to a picnic or get-together with pride and satisfaction. “I’m a salesperson, basically,” the union president said.

Retirement Plans and Employee Loyalty

Aside from the financial benefits—including deferred taxes and other advantages—available to employees in employer-sponsored retirement plans, setting one up for your workers can also help create a sense of belonging and loyalty. Employees who feel appreciated are more likely to work harder and contribute to the successes of the company, and investing your employees’ future is a relatively simple way of showing your gratitude. While you may not be able to offer free beer for life, you may consider other ways to keep your employees connected to your company long after they retire.

If you are considering developing a retirement package for your workers or you have one in place but it needs to be tweaked, contact an experienced Naperville business law attorney. Call The Gierach Law Firm for a confidential consultation today and get the help you need in protecting your employees’ financial security.

 

Sources:

CBC News

Internal Revenue Service

Automated Data Processing