Question

You are the CEO of Winton Enterprises, a large specialty manufacturer of automobile parts. You have a $200 million business providing car parts to a number of auto manufacturers, both domestic and international. Many years ago, your company offered "lifetime health benefits" to all retirees. Foreign competition has forced you to move some of the manufacturing to China. This offshoring of work has reduced your expenses tremendously. However, the cost of medical insurance and benefits for retirees has risen dramatically. The program for retirees is in serious jeopardy. Recently, new hires are told to invest their benefits money as they see fit; they are not offered lifetime health benefits. Now you must inform the company's retirees that they will have to pay half of the cost of their medical benefits beginning January 21 of next year.

Write a one-page formal business letter to Simon D'Azure, a retired worker, that he will have to pay half the costs of his health care premiums directly. You will provide a telephone number so that he can have his questions answered by the insurer. Create any details needed for a complete letter.

Answer 1

From the CEO

Winton Enterprises

3/03/2020

Dear Mister D'Azure

I am writing to you to inform you about changes in your lifetime health benefits. You, as a retired worker of our enterprise, deserve to be informed about these changes, and I am personally providing you with the new details, so read carefully.

Even if Winton Enterprises has managed to reduce many costs with different business strategies, especially by outsourcing some of its production to China, the company has not been able to reach a healthy financial state. The reason for this is that the cost of the benefits for retirees has skyrocketed. We had to take a radical decision as a company: from now on, retirees like you will have to pay half the cost of their medical benefits, starting from January 21 2021

Please let me know if you have anymore questions about this new policy. You can also call us at 202-555-0194 if you want to recieve any answer about this matter.

Yours Faithfully

Winton Enterprises CEO