Issue link: https://nebusinessmedia.uberflip.com/i/1515234
Dexter-Russell 57 SHARING THE PROFITS Although Russell-Harrington paid a fair wage, the company did not offer employees a retirement fund of any significance in the early days. One of the major contributions of partnering with Hyde Manufacturing was the immediate integration of their profit sharing program, which had started back in 1954, and was one of the first in the nation. Unheard of then and today, employees were eligible for a tax-free, company- paid contribution of up to 15 percent of their W-2 earnings into a trust fund that grew tax-free. It was one of the first and most generous defined contribution plans in the country. Notably, employees of Russell-Harrington and Dexter have earned their full share for every year since 1968; it is now a badge of honor to make sure all employees receive the award each year, and the string of full contributions is never broken. Even when the company, and the nation, faced tough economic times, Russell- Harrington held fast to its financial responsibilities to employees. e 1980s were a prime example of the company's wise decision-making that helped preserve jobs and reward workers. During this era, many companies were forced to lay off workers, some as much as 20 percent of the workforce. At Russell- Harrington orders were down, but Richard Hardy, president at the time, anticipated the company would end the year on a positive note. To protect its workers and maintain a viable business, Russell-Harrington discontinued overtime and laid off some part-time workers. However, the company made a concerted effort to keep all full-time employees on the payroll until the fiscal crisis was over. Hardy's expectations proved to be right. In May 1980, Russell-Harrington distributed its largest profit sharing amount, to date, in company history! e plan had 242 participants and 23 new members at the time. In the company newsletter, e Breeze, Hardy wrote, "Good profits are what keep a business healthy and every employee shares responsibility for that profit by doing the best he can in his work." Two months later, Hardy reiterated the company's appreciation to its staff in his letter published in e Breeze. "Our desire to be #1 in the cutlery industry is dependent on the belief (ours and yours) that the employee is #1." Today, changes in the tax laws have led to a new retirement fund arrangement that still surpasses that of most other companies. Employees contribute to a special fund and the company matches and adds to their contributions, and a full 20 percent of pre-tax W-2 earnings can be invested each year for retirement.