Business and Administrative Communication 10th Edition by Kitty Locker,Donna Kienzler

Exercise 20

Announcing a Reduction in Benefits
In years past, your company has had a generous health insurance policy, fully funded by the employer. Employees pay only a $10 copayment for doctor visits and a $6 copayment for prescriptions. However, the cost of health insurance has risen much faster than the cqmployees to contribute part of the cost of their health insurance through payroll deductions, and management has determined that your company must begin doing the same. For a group insurance policy similar to the one employees have received in the past, they will now have to pay $50 per month, and the copayment for doctor visits will rise to $15 per visit. The coverage for prescriptions will vary, with the $6 copayment applying only to generic drugs. For brand-name drugs, employees will have to pay more.
As your instructor directs,
Write an e-mail message to the employees of
a. A large advertising agency in a big city. The agency's billings have fallen 30% in the last six 6, and 10% of the staff have already been laid off.
b. A manufacturing company. The company is still making a profit, but just barely. Unless the company saves money, layoffs may be necessary.
c. A successful service business. The business is doing well, but most of the employees earn only the minimum wage. They do not own stock in the company.