What could possibly be better than working at a brewery? Perhaps getting free, lifetime beer from said brewery, which was the case for one Canadian brewery … until it recently decided to do away with the perk.
Former Edmonton, Canada, brewer, Labatt, has been offering a free beer allotment as part of its workers’ pension benefit package since 1962. But come January 1, 2019, the perk will be phased out entirely due to Labatt’s growing concerns over the cost associated with giving away free beer. For existing retirees, the allotment will be cut in half by 2018 and completely cut off by 2019.
Labatt, now owned by Belgium-based global superproducer Anheuser-Busch InBev, claims, “The reason for the change relates to the rising overall cost of maintaining a full benefits package, including health care coverage for retirees.” Labatt Vice President, Lindsay King, wrote in a letter to employees, “A recent comprehensive review of all the cost management options has led us to conclude that discontinuing free beer is the best course.”
However, some Labatt union representatives claim this move is just “nickel-and-diming” retirees. According to CBC News, each current employee gets a Labatt gift card loaded with the equivalent cost of 52 cases of 12 beers (one case per week). On retirement, that allotment continued for life—and then some. After a Labatt pensioner died, their spouse was then entitled to the same yearly free beer card.
Many employees claim this work perk was a great morale booster in an otherwise monotonous job, but since being acquired by Anheuser-Busch InBev, the atmosphere has changed, and this isn’t the first cut Labatt employees have seen. CBC News reports that in 2010, new hires saw a $10 drop in wages. The new starting wage was $24 per hour, compared to $34 per hour for workers hired previously. Also, new employees now have to pay into their own pension.
Labatt claims it still offers a favorable benefits package to its employees, but it is unclear how much money it will save by eliminating this perk. Canadian brewer, Molson, tried the same thing in 2009, and it ended up saving the company over $1 million a year. Labatt employees should be relieved that the company is still offering medical benefits to its retirees—all that free beer can’t be good for the liver!