Fitness Exercise Equipment, Inc.

Interoffice Memorandum
To From Date Subject All Employees C. K. Mitchell February 8, 2014 Smoke-Free Environment

In order to protect the and financial and physical health of all employees, Fitness Exercise Equipment, Inc. will be implementing a policy requiring smokers to cover more of their health-care costs. Policy Proposal Hello, team members. I am writing to you all today to inform you of the crucial changes that Fitness Exercise Equipment, Inc. is forced to consider. Last year, to protect the health of all employees and counteract the substantial rise in health care costs, smoking anywhere on company property was forbidden. Unfortunately, despite the ban, the companys health care costs have continued to rise, as the predicted reduction in employee sick days did not prove to be true. That being said, I was forced to appoint a committee of managers, in order to help me come to a conclusion and a resolution on what can be done to relieve the company of these dreadful financial and health woes. After careful research and deliberation, the committee has proposed a policy that requires employees who smoke to contribute 15% more to the cost of their health insurance than employees who do not. Although this proposed policy many appear restrictive and insensitive, this new policy will only be beneficial to our success and diplomatic to those affected most. Reasoning I am aware that the proposed policy may come as a shock to most of you, but please stay cognizant of the fact that the policy is only meant to help all of you through this financial hardship. Currently, the company pays 80% of the cost of health care insurance for each employee, as it is a part of the companys objectives to make health care affordable for each employee. That being said, because we are heavily subsidizing the cost of health care to support our main cause, it only makes sense to create an incentive to promote healthier wellbeing that is consistent with our values. Favorably, the additional revenue made from smokers contributions will be utilized to fund rehabilitation and prevention programs, as well as allow the company to provide a consistent amount of financial aid towards employee health care for years to come. In turn, the new company features will undoubtedly reduce the number of illnesses, which will lower the future costs of health care for all employees. To introduce this policy as lightly as possible, it will not come into effect until April 8, 2014, exactly two months from today, to allow any employees who smoke the chance to enroll in courses which will help them break or curtail their habit. I believe that, although a personal choice, smoking should be minimized at the workplace and in general, for it is the companys eventual goal is to create a healthier and happier environment for all employees. I will be available to all employees for discussion, as customer satisfaction will always be my top priority.