PHWP: Good Company Newsletter: Building a Culture of Wellness

March 10, 2010

Building a Culture of Wellness

American Cast Iron Pipe Company (ACIPCO) is one of the world’s largest manufacturers of ductile iron pipe, fire hydrants and valves for the waterworks industry as well as electric-resistance steel pipe for oil and natural gas pipelines. Throughout its more than 100-year history, ACIPCO has served as an industry leader, known for its innovation in manufacturing processes and products and its model health and safety programs.

Click here to watch a video clip about American Cast Iron Pipe Company.

Employee Involvement

The company’s late founder left ACIPCO to employees in the form of a trust, which provides many unique opportunities for employee involvement. ACIPCO employees are grouped into districts that elect representatives to serve on the Board of Operatives, as well as a Director-at-Large to represent wage employees. A member of the Board of Operatives also serves on the Board of Management and an elected Clerical Director represents salaried employees.

Other workgroups at ACIPCO include a continuous improvement support team composed of employees from across the organization and a health and productivity team. All employees and retirees benefit from the profit-sharing plan established by ACIPCO’s founder, and monthly meetings provide a venue to update employees on the company’s book of business.

Health and Safety

The ACIPCO Medical Group located on campus offers medical, dental, vision, x-ray, mammography, pharmacy, laboratory and specialty services to approximately 9,000 employees, dependents and retirees. Additionally, the company mandates employee participation in a comprehensive safety program that uses peer-observation activities to encourage safe work habits, and each department has an ergonomics team to focus on issues specific to different work areas.

ACIPCO’s award-winning wellness program (see Laying the Foundation for Employee Health) is recognized as cutting edge, especially among manufacturing companies. The 5,000-square-foot Eagan Center for Wellness houses staff offices, an exercise room with weights and fitness equipment, an aerobics room and a physical rehabilitation clinic. The wellness staff, including a manager, assistant and contracted fitness instructors and physical therapist, administer the center’s health education programs, oversee center operations and manage on-site physical therapy and conditioning programs. Educational programming available to employees, dependents and retirees includes diabetes education, injury prevention, exercise, nutrition and smoking cessation classes. In addition to classroom instruction, wellness staff visits employees on-site to accommodate workers throughout the plant.

Employee Growth and Development

ACIPCO’s Placement and Development Department provides apprenticeship, leadership, personal development and basic skills training programs for employees through the company’s Eagan College. The apprenticeship program is designed to identify and train employees in trades such as maintenance, electrical and mechanical operations and allows employees to perform different work tasks to gain experience and advance their careers.

The company’s leadership program helps employees develop the skills necessary for management functions and is a mandatory part of the curriculum for all new supervisors. Personal development courses range from CPR to investment strategies and basic skills training includes classes on writing, computer skills, math and public speaking. Tuition reimbursement is available to employees and joint programs with local universities provide opportunities for employees to earn management certificates and advance their careers.

Work-Life Balance

In the 1920s, ACIPCO became home to the first industrial YMCA in the Southeast, serving the recreational, educational, religious and social needs of employees and families. The YMCA has hosted various corporate and social events, including training classes, banquets, music and sports, and ACIPCO’s culture of commitment to families and wellness continues today.

With health care services and a credit union located on-site, ACIPCO employees have convenient access to services that help them manage life’s demands. An EAP provides confidential, professional counseling assistance to employees and their dependents and popular classes on job stress and balancing work and non-work demands are offered by both EAP and ACIPCO Wellness staff.

Employee Recognition

ACIPCO knows recognition goes a long way. Through the Bright Ideas Program, employees can earn $100 for ideas that are implemented and, if financial benefits can be calculated, the employee receives 15 percent of the net savings in the first year. Employees who report safety hazards are awarded gift cards at monthly safety meetings and departments with significant safe working periods receive quarterly and annual safety awards.

Newsletter articles highlight employee achievements and news of significant events such as births and graduations is shared across the organization. The monthly publication Pipe Progress, which is distributed to approximately 16,000 potential and actual customers, includes articles about ACIPCO products used in projects around the world and recognizes the employees involved in their development.

The Bottom Line

ACIPCO’s health and wellness program has demonstrated a measured return on investment (ROI) of 2:1. Positive health outcomes include more than 320 employees who have quit smoking, approximately 1,200 who have begun an exercise program and more than 600 who have lowered their blood pressure to within normal limits. The diabetes education program has saved the company more than $4 million by reducing health risks and preventing complications, and the company’s physical therapy and rehabilitation services save ACIPCO approximately $175,000 annually.

In recent employee surveys 94 percent of employees reported that they were satisfied with their jobs and 70 percent said they were often or very often able to manage job stress effectively. ACIPCO’s safety program has also demonstrated positive results, with a 38 percent decrease in the company’s overall injury rate over the course of one year. ACIPCO boasts a turnover rate of less than 1 percent, and the culture of trust has resulted in loyalty from both employees and customers alike.

American Cast Iron Pipe Company received APA’s 2010 Psychologically Healthy Workplace Award in the Large For-Profit Category.

Reprinted with permission from the American Psychological Association.