SFG Acquisition FAQs

Decisions with respect to pay are based on a number of factors – primarily driven by the availability of talent in a given area, the nature of the work being done, and the performance of the business. For our production, maintenance, and clerical hourly team members, we’ve conducted these types of reviews on an annual basis and are scheduled to do so again in the Spring of 2019. For our salaried team members, the reviews are conducted at regular intervals as well. In both cases, our intent is to ensure that we are competitive with respect to the jobs, markets, and industries in which we operate. This has enabled us to attract, engage, and retain talent & team members.

With respect to your question about “everything (getting) wiped like a fresh start”, I’m not sure how best to respond – because I don’t know what you are referencing. If you’d like to clarify, please submit in a new question. I’ll answer promptly. Thanks!

The above is not applicable to our UCFW Local 227 team members. Wages are set as per the collective bargaining agreement currently in place.

Mark Berry, Vice President, People (HR, Safety, & Health Services)

Thanks so much for the question. It gives me the opportunity to talk about a few things that should be important to us all.

An employee clinic is something that had been considered by SFG leadership well in advance of the acquisition. It is a benefit we implemented for all of the Delphi team members & family members covered under one of our medical insurance plans and one of the most popular benefits we offer as a company. We believe in doing what we can to help provide affordable access to health care for our families. Specifically in Delphi, it’s a “win/win” for both team members & our company as a whole.

The issue – in looking at locations smaller than Delphi – is the ability to do this & generate sufficient “traffic” in & out of the clinic to make it economically viable. Delphi – with approximately 2,000 team members in total – has been able to “fill” the existing clinic we opened several years ago. On any given month, well more than 90% of our available appointments are filled. At a smaller location – such as Holland, MI with approximately 130 team members or Frankfort, IN with approximately 80 team members – it would be impossible for such a benefit to be economically viable; the number of appointments required to cover the cost of a clinic can’t be generated. With respect to Owensboro, we simply haven’t had time to look at the viability of such an option.

What we are doing – that benefits all IPC (and SFG) team members & families who elect our benefits – is providing exceptionally good medical, dental, vision, 401(k), and other benefits. We’re also looking at how to introduce member “wellness” as part of our offering, truly focusing on improving the overall health of our team members and their families. Our immediate focus is on ensuring that we have a great benefits offering in place for the beginning of the new calendar year, with a range of options greater than what has been available in the recent past for SFG team members. Once completed, we’ll take time to look at other options – including improving team member & family access to health care.

Mark Berry, VP, People (HR, Safety, & Health Services)

The short answer is “No”. A team member must be retired and/or terminate employment before they receive retirement benefits. Additionally if they want to retire and then be re-employed, those benefits would continue as noted below:

Section 1.2 g – Except as otherwise specifically provided in the Plan, no benefits shall be payable until the Member retires or otherwise terminates employment with all Employers.

Section 4.4 LATE RETIREMENT – A Member may remain in the employ of the Employer after his Normal Retirement Date, in which event no Monthly Retirement Income shall be paid until the Member’s Late Retirement Date. The Member upon his actual retirement on his Late Retirement Date, shall be entitled to receive a Monthly Retirement Income equal to an amount computed under Section 4.3, based upon Credited Service and Average Monthly Earnings to his Late Retirement Date; provided, however, in no event will a Member’s benefit at his Late Retirement Date be less than the benefit to which he would have been entitled at his Normal Retirement Date increased by twelve percent (12%) per annum compounded annually for each month that the Member’s Late Retirement Date follows the Member’s Normal Retirement Date.

Section 4.9 REEMPLOYMENT – If a retired Member returns to the employ of the Employer, payment of the Member’s Monthly Retirement Income shall continue and he shall resume his membership in the Plan in accordance with the provisions of Section 3.1. Upon the Member’s subsequent retirement, the Member’s Monthly Retirement Income shall be recomputed to reflect any increase in his Accrued Benefit based on any additional periods of employment. Any increase in the Accrued Benefit will then be adjusted pursuant to Section 4.4 or Section 4.5 to reflect his actual age at the subsequent retirement date.

Kevin Clark
Director of Human Resources

This is – probably – the most common question we expected to receive. We’re glad you asked. The response below is specific to SFG & IPC team members not represented by UFCW Local 227 (who will continue with the benefits negotiated previously).

Through the end of this calendar year (December 31), there will be no change to our (both IPC & SFG) medical, dental, vision, or other elected benefits. There were two reasons for this: 1) We were not able – pre-close – to do the work required to “harmonize” benefits between the two companies and 2) changes in benefits during the course of the year have some negative impacts for team members (new balances that must be met on co-pays & out of pocket maximums for example). We didn’t want that to happen! FYI – If you’ve not heard the word “harmonize” before at least in terms of benefits, you’ll hear it a great deal over the next several months, as we seek to bring the benefit programs of SFG & IPC together (or “harmonize” them).

Over the course of the next 4-6 weeks, we – IPC & SFG HR team members – will be working with Mercer (a leading global HR consulting firm) to finalize what we will be offering in 2019 (beginning in January). Our objective? To provide the most competitive plans we are able at a cost that is sustainable for both our team members & company. To complete this part of the integration work, it will require both SFG & IPC team members to participate in an annual “enrollment” (much like what has already been done – in August – with SFG and is scheduled to be done with IPC in November), where eligible team members will be able to elect medical, dental, vision, life, and other coverage. What will be the same? Our medical plan provider, for sure; both companies currently provide coverage through United Health Group. What will be different? At this point, we can’t say – because the work of defining our new benefits has not been completed.

As of this past Monday, we’re all part of one company. Our intent is to have a great benefits program, not only for Delphi and Owensboro, but also Frankfort and Holland. Stay tuned for more information!

Mark Berry, VP, People (HR, Safety, & Health Services)