THE MILL WHISTLE
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Eden, N. C., February 21, 197^^ No. 16
insurance Cost Up; Company Pays More
Your Cri^Altr\ IKkOn ro V\ r>/i i c y-i/-kO+i m n- V»^y-v-v»y^ i/v>.; » -,^-1 J.T 1 _
Your group insurance is costing more,
'^s a matter of fact, the insurance
Overage for Fieldcrest employees and
Jieir dependents in 1971 cost well over
Oe-half million dollars more than in
^6 previous year.
Company Absorbs Greater Share
^ It is true that the insurance did not
l^ost the employee any more. That is
ecause the employees' part of the
fenaiums remained the same while the
°^Psny “picked up the tab” for this
obstantial increase.
‘^mce the group insurance plan was
“t into effect nearly 40 years ago, the
_^Ployees have paid a part of the pre
miums and the Company has paid a
part. In the past year the Company paid
a higher share than ever before because
the employees’ premiums were not rais
ed to help take care of the increased
costs.
If the cost of the insurance continues
to rise, it is obvious that some adjust
ments will be necessary. And there is
no reason to believe that hospital and
surgical costs will become less in the
foreseeable future. Also, as people de
mand and receive better and more fre
quent health care, the number of claims
may be expected to increase.
Many employees probably do not re
Company Announces
Corporate Promotions
David M. Tracy, corporate vice presi-
and president of the Fieldcrest
. srketing Division, was elected a sen-
id*" president of Fieldcrest Mills,
^ > at the regular January meeting of
® Board of Directors, G. W. Moore,
airman of the board, announced,
staf ' joined Fieldcrest’s sales
in 1948 and shortly thereafter was
®d sales representative on the west
Johnnie On The Job’
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®hnnie Barber, of Blanket M 11 Cot-
_ ** Spinning, has a record of 10 years
Perfect attendance on the job. See
|( four for picture and story of Blan-
I^ill attendance champions.
coast. In December, 1955, he became
assistant sales manager in New York,
serving until 1960, when he was ap
pointed Eastern sales manager.
He was named a division vice presi
dent and assistant general sales man
ager in January, 1966, and, in Janu
ary, 1967, was appointed general sales
manager. In March, 1970, Mr. Tracy
was elected corporate vice president and
director of sales. He was named presi
dent of the Fieldcrest Marketing Di
vision in June, 1971.
Effective immediately, Mr. Tracy and
W. B. Guinan, a senior vice president
and president of the Karastan Market
ing Division, report to William C. Battle,
president of Fieldcrest Mills, Inc.
Mr. Guinan joined the Karastan Mar
keting Division as sales manager in
1954. He was elected vice president of
Fieldcrest Mills, Inc., in 1954. In No
vember, 1957, Mr. Guinan was appoint
ed president of the Karastan Marketing
Division and was elected a senior vice
president in July, 1969.
Mr. Moore also announced that at
the same beard meeting three new cor
porate vice presidents were elected.
They were: Herbert M. Bergen, Jr., O.
G. Grubbs and John P. Robertson.
Mr. Bergen, Jr., vice president and
(Continued on Page Three)
alize the scope of the group insurance
program covering 12,000 employees and
their dependents—an estimated 42,000
persons. That’s a lot of liability for
claims. In dollar terms, the total paid
in 1971 for all employees was $3,762,-
293, having increased from $3,167,368
the previous year. Looked at another
way, claims went up in this one year
by almost 19 %!
Four Years Without Premium Increase
The main reason it was necessary
for the Company to pay a substantial
additional amount was that, while hos
pital and surgical costs have continued
to rise, there has been no increase in
the employees’ premiums since 1968. It
is significant that this is the longest
period without a premium increase since
the group insurance program began.
It should be remembered, too, that
when the premiums were raised in 1968,
the insurance plans in all of Fieldcrest’s
southern plants were improved, bring
ing substantial increases in hospital and
surgical benefits. More improvements
were put into effect October 1, 1970,
when allowances for hospital room and
board and maternity benefits were in
creased with no increases in the em
ployees’ cost.
It has been since these improvements
were made that costs have risen most
(Continued on Page Two)
Last Call
Those who expect to apply for
a Fieldcrest or Muscogee Scholar
ship are reminded that applica
tions must be received or post
marked by March 1 in order to
be considered by the Scholarship
Committee.
Those who have not yet obtain
ed an application form may obtain
one from their area personnel
manager or mill personnel office;
or call at the Employment Office
of Fieldcrest Mills, Inc., in the
General Offices building, Eden;
or write to Dr. William McGehee,
director of personnel research
and development, Fieldcrest Mills,
Inc., Eden, N. C.