Ronald F. Kruse | Chief Operating Officer
Lone Star Communications, Houston
January 26, 2022 Weekly Recap
A GREAT LOSS
October 8, 1987 - January 19, 2022
GoFundMe Page for Lisa Emanuel Funeral Expenses
Reference e-mail 1/25/22
FROM THE DESK OF THE PRESIDENT
Reprinted from an e-mail sent Tuesday, January 25, 2022
From: Raymond J. Bailey Subject: Update on profit Sharing
It is almost Newsletter time again but there are a couple of items I would like to update you on now. There will be more detail in this month’s Newsletter going out Wednesday next week.
Profit Sharing. Profit sharing is normally scheduled to go out on the second payroll of the month following the end of the quarter. The month following the end of the 4th quarter is January and the second payroll is on the 28th this year. However, due to the closing of the books, this has slipped to the first payroll of next month or the 11th of February. After seeing the issues that can come up at the year end, such as audits, we may be better served to move the date for future years to the first payroll of February. More on that later.
Cost of Living. Over the years we have established March as the time of the year to review the cost of living changes that have affected us and to make a cost of living adjustment, COLA, if warranted. 2020 was a tough year with Covid locking us down and out of some jobs still we did COLA increase of 2.19% in July 2020. In early 2021 inflation was low again and the adjustment made was 1.4% which was made in March, just 8 months later. In April 2021 we did merit raises as well. In November of 2021 it was obvious that inflation had hit us and we did a mid-year adjustment of 4.0%. After having our Strategic Planning Session last week and discussing inflation and wages, then seeing the news this weekend, it appears this inflationary period is likely to get worse before it gets better. Therefore, Lone Star is adjusting the pay of everyone in the company that is not on a commission program by an increase of another 5%. This 5% brings the increase in wages since April of 2021 to 10.4%. Lone Star will have to increase prices to make up for these adjustments, but so goes the cycle of business.
The SPC, Strategic Planning Committee, has identified that wages are in need of a thorough review and has created a new “Rock” to review the payroll range of every position in the company. The goal is to verify we are paying an appropriate wage for each position and make adjustments where the wage justifies an increase. This increase will be completed along with merit raises this year.
More on all of this in the newsletter but in summary, look for a 5% increase in your salary or wage rate in yo