When workers at Union Pacific labored to connect the first transcontinental rail line back in the 1860's, the job was considered among the most dangerous in America. Now, as more and more companies struggle to contain runaway healthcare costs, the storied railroad is staking claims to have the healthiest workforce around.
Jerry Gibson is a slimmer case in point. After tipping the scales at 360 pounds, the 39-year old diesel mechanic was greeted with a gym membership instead of a pink slip.
Cheered on by his bosses, Gibson has since knocked off a respectable 110 pounds, and regularly drags his work buddies to join him at the gym. Union Pacific continues to push him along, providing pamphlets with weight loss tips and keeping track of his progress.
"There's a lot of encouragement to be healthy," says Gibson, who has been working on the railroad for eight years.
Union Pacific is hardly alone in wanting to keep manageable problems from turning into big medical expenses. Indeed, companies both large and small are preaching the virtues of prevention to keep employees healthy and more productive.
Wal-Mart, the controversial retail giant, suggested that "all cashiers to do some cart gathering" as way to promote physical activity, according to an internal memo that was first reported by the New York Times. But it is the company that helped open the West that is once again the envy of corporate America.
"We believe that a key component to workplace safety is health," explains Barb Schaefer, senior vice-president of human resources at Union Pacific.
Health
This Isn't Your Grandfather's Railroad
Out of the train operators and other staff who see that 250 million tons of coal reach its destination each year, more than half of all employees have enrolled in Union Pacific's various wellness initiatives, which range from cooking competitions to spin classes. The company has banned smoking near any office or alongside 32,000 miles of track and refuses to hire smokers in states were it is legal to do so.
Vending machines, according to a new rule, must stock at least 30 percent of healthy snacks between the potato chips and candy bars. Union Pacific is even the leading health provider for the town of De Soto, Missouri, where doctors and nurses urge residents to give the company's wellness programs a shot.
"We try to make it a healthy competition," says Schaefer.
Union Pacific has plenty of rivals. Employees at Motorola can get advice over the phone on how to manage chronic diseases like asthma or diabetes. At Home Depot, a company-wide flu prevention effort resulted in $460,000 in savings from workers who would have otherwise been out sick.
Johnson & Johnson, which has created many life saving drugs, offers a comprehensive check up to determine employee health risks. The company is quick to recommend lifestyle changes for those who want to stave off future troubles.
How Good At Cutting Costs?
The key reason for all these efforts is to cut costs. Obesity-related diseases, such as diabetes or hypertension, account for the bulk of health insurance benefits. Research suggests that employees who take part in company wellness programs spend far less on medical care than those who sit idly by at work.
Many CEO's are beginning to take notice. According to a 2005 survey by Hewitt Associates, the number of companies offering disease management and wellness programs jumped 10 percent from the year before.
"This is growing," says Dr. Ron Goetzel of the MEDSTAT Group, a research organization that studies workplace health.
While no one faults companies for promoting good habits, this new emphasis on preventative care has raised concerns that companies will hire or reward workers based on their ability to stay healthy. Such company wellness programs are voluntary, but studies have found that overweight people tend to earn less and get passed over for promotions.
In the memo intended for the Wal-Mart board of directors, Susan Chambers, the vice president in charge of benefits, said that promoting physical activity "would also dissuade unhealthy people from coming to work at Wal-Mart."
Moreover, these wellness measures are not expected to hold down medical costs on their own. Despite the years that General Motors and Union members worked to promote better health at auto plants, the company recently announced that employees will have to spend nearly four times as much to help cover their healthcare expenses.
Still, many companies are encouraged by the progress they've made so far.
"We've had a 10 percent reduction in health costs from lifestyle changes," says Schaefer of Union pacific.
For Gibson, the diesel mechanic who now weighs 250 pounds and is still dropping, the company has provided him more than a paycheck.
"It's given me more confidence," he says of losing weight. "I feel better about myself."
