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2012 Southern Employee Benefits Conference. Clint Demetriou VP, Total Rewards October 2, 2012. Graphic Packaging International- Business Overview. Packaging Solutions That Improve the World in Which We Live. Key Products. Beverage. Household and Personal Care. Food.
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2012 Southern Employee Benefits Conference Clint Demetriou VP, Total Rewards October 2, 2012
Graphic Packaging International- Business Overview Packaging Solutions That Improve the World in Which We Live
Key Products Beverage Household and Personal Care Food Specialty Plastics Microwave Multiwall Machinery Labels Club Store
Graphic Packaging Cartons for Consumer Products Food Household and Personal Care Beverage Labels Microwave
Paperboard Packaging BusinessOverview Key Facts Industry End Markets Soap/Laundry 2% • Largest U.S. producer of folding cartons • Focused on food & beverage end markets • Vertically integrated network of 55 converting facilities and 7 mills (80+% integrated) • 3 virgin (CUK) mills produce approximately ~1.5 mm tons per year • 5 recycled (CRB & URB) mills produce approximately ~0.9 mm tons per year Health & Beauty 2% Other 8% Beverage Carriers 33% Food Services 5% Frozen Foods 21% Dry Foods 29% Centralized Managed Integrated Global Supply Chain to Our Customers Wood OCC FiberSupply PaperboardProduction Global Innovation &Carton Development CartonConverting PackagingMachinery
Our Customers Are Global Food, Beverageand Consumer Products Companies U.S. and Canada Central & South America Europe Pac Rim Major Customers Major Customers Major Customers Major Customers We Grow Globally with Our Customers
Graphic Packaging at a Glance Headquarters- Marietta, GA (Sandy Springs) $4.2B revenue 3 Major M & A events since 1998 Manufacturing Sector 12,000 employees; some representation
Comprehensive package of compensation and benefits.Includes retirement plans, medical plans, disability and life insurance, market competitive salary and wagesInvest over $1 billion per year in compensation and benefits for employees and their dependents15,000 retirees currently receive or will receive retirement benefits 12,000 dependents arecovered by our medical plans Graphic Packaging at a Glance
Benefits- Design Principles “Aggressive” on health, leave, systems/processes • Sustainability- for the company, for the employee • Productivity- bringing my best to work and to home • Accountability- “skin in the game”, incentive to take action • Engagement- supporting supervisory engagement
Graphic Packaging- Our Employees “Who’s Your Reason?” • Age 48, male, married with children • Earns $40,000 • Lives in small town America, family and community are important, takes pride in their work for GPI • Limited Internet access at work; not likely to read GPI communications • Dealing with one or more potentially serious health issues
Benefit Priorities • Simplify Plans Too Many • Labor contracts “Same As Salary” • Administration Leverage external partnerships, LEAN process, improve systems • Reduce Liability Accelerate to DC (minimize the unknown), one culture, data consolidation • Medical Introduce HRA and incentives, actuarial/dependent pricing, spousal surcharge, Position for Reform • Manage Leave Day one reporting and location metrics • Behavior change GPIFIT- narrow focus, tobacco-free, weight, Who’s Your Reason?, Remember audience
Health Care Plan 2013HRA Plan, Spousal Mandate, and Dependent Subsidy Reduction In Millions Assumes enrollment of all 9,791 enrolled employees (Union and non-Union) in the New "SAS" HRA plans How do you bend the curve in today’s environment?
2015$1, 000 HRA Information Information—Gating Mechanism √ Biometric Screening and HRQ Information—$500 √ Biometric Screening √ HRQ Information—$250 √ Biometric Screening √ HRQ Action Outcomes Action—$300 √ Preventive Care Exam √ Engagement with Health Coach and Development of Health Action Plan √ 6-month Check-In with Health Coach Action—$500 √ Preventive Care Exam √ Engagement with Health Coach and Development of Health Action Plan √ 6-month Check-In with Health Coach Outcomes—$700 Examples Include: √ Reduce BMI by 5% √ Reduce cholesterol by 10% √ Reduce blood pressure by 10 points √ Reduce blood sugar by 5% √ Stop smoking √ Reduce health risk factor by 5% Action—$500 √ Preventive Care Exam √ Engagement with Health Coach and Development of Health Action Plan √ 6-month Check-In with Health Coach Outcomes—$250 Examples Include: √ Reduce BMI by 5% √ Reduce cholesterol by 10% √ Reduce blood pressure by 10 pts Health Care Plan 2013 Know, Act, Improve 2013$1, 000 HRA 2014$1, 000 HRA Health Improvement
Health Care Plan 2013 Health Plus Incentive Plan Actions and Incentives HRQ and Biometric Screening ($500) Preventive Care Exam ($150) Engagement with Health Coach and Development of Health Action Plan ($150) Six-month Progress Report with Health Coach ($200) Single Family Single Family Single Family 90%/70%PPO 70%/50%PPO 70%/50%PPO 80%/60%PPO 80%/60%PPO 90%/70%PPO Plan Coinsurance Medical Claim Expenses Incurred $3,400 $2,200 Plan Deductible $1,400 $1,200 $600 $200 Earn HRA Accumulation (First Dollar) $1,000 $1,000 $1,000 PPO Plus Health Reimbursement Account
OldLeave Management Notification, Time System Workflow EE Requests Leave Employee Makes Call Or . Submits Leave Form Paper Claim Request for Info, Follow Up to Provider, etc. Approval or Denial Received Outsource Supervisor or HR Asks EE to Report Leave to Met • Superv. Updated on Leave • Cover Shifts • Plan • Perf. Mgmt. Superv. Covers Shift ADP E-Lbr M. Noland Supervisor Confirms Time Collection Device Updated Correctly: Daily, Weekly, or Monthly. (Local HR Monitors/Manages) e 1 Workbrain Lisa Roche 1 Kronos J.L. Barnard 7 Payroll HR May Help/Be Notified HR Monitoring Total Absence Sheets Call or Paper Paper MetLink Reporting MetLife Paper or Telephonic Intake of Leave MetLife Claim Review and Determination
New Notification Workflow – Leave Management, Time Systems EE Requests Leave Request for Info, Follow Up to Provider, etc. Approval or Denial Received Supervisor Complements Other Absence Data with Time Collection Device (Local HR Monitors/Manages) Superv. Covers Shift 2 Uniform Time Management System (Automated Input) 3 SAP Payroll HR Monitoring & Mgmt. Leave Mgmt. (Cigna) E-notification and/or Reporting Bank 1 ACTEC (Live) 24 / 7 / 365 Telephonic Intake of Day 1 Absence “Day 1” Real Time E-notification and/or Email Bank Leave Management Claim Review and Determination WC – Gallagher Bassett
Graphic Packaging International Thank You