Andersen Corp. Links Profit Sharing with Vaccinations
A week before Christmas Eve, Andersen Corp. employees are celebrating profit sharing payments of $3,200 per employee.
If they want to continue the celebration into 2022, they will need to be fully vaccinated against Covid-19 to receive future profit-sharing payments.
Andersen, a manufacturer of windows and doors, implemented a new policy on Dec. 4 that “requires all new hires to be fully vaccinated against Covid-19 prior to their first day of work at Andersen.” That policy is subject to limited exceptions.
“At Andersen, we made the decision earlier this year not to institute a vaccine mandate for existing employees given all we have been through together over the past 21 months,” Jay Lund, chairman and CEO of Andersen, said Friday in a written statement. “Going forward, we believe it continues to be our responsibility to take appropriate measures to help reduce the impact of this pandemic on our people and our communities. We’ve chosen to do this by incentivizing current and future employees through a vaccination requirement as part of our 2022 profit-sharing program.”
Andersen, headquartered in Bayport, Minnesota, announced Friday it would pay out $31.6 million in profit sharing to eligible employees. It’s a December tradition, and its profit sharing goes back to the days of founder Hans J. Andersen, who delivered the first checks himself in 1914. The company has grown to employ more than 11,000 people.
Andersen’s profit-sharing program will look much different in 2022. The company pledged that it would allocate $4,000 in profit sharing per eligible employee for 2022.
“This will be the largest profit-sharing payout the company has made since before the Great Recession,” Andersen Corp. said in a Friday release. “It will also be a fixed amount paid in quarterly installments of $1,000, rather than a single year-end payout based on the company’s financial performance. To participate, employees will be required to be fully vaccinated against Covid-19 prior to each quarterly payment, subject to limited exceptions.”
Since Covid-19 vaccines became broadly available in the first half of 2021, many employers have been grappling with ways to get their workforces fully vaccinated. Some have put vaccine mandates in place, while others have urged their employees to get vaccinated. Lawsuits have been filed by parties around the United States to block vaccine mandates that affect public and private employees.
Huge demand for home products
After the pandemic hit in March 2020, many manufacturers kept their factories operating. As the pandemic became prolonged, Andersen was among the manufacturers that was a big beneficiary of remote work and distance learning.
“As homeowners across the country continue to prioritize investments in their homes, demand for Andersen’s broad portfolio of window and door products soared in 2021,” the company said in its release.
The National Association of Home Builders (NAHB) has chronicled developments in the housing construction market. “Single-family housing starts accelerated near the end of 2021 and are up 15.2 percent year-to-date as demand for new construction remains strong due to a lean inventory of resale housing,” Chuck Fowke, NAHB chairman, said in a Thursday statement.
“Breaking an eight-year trend, in recent months there have been more single-family homes under construction than multifamily units,” according to Robert Dietz, NAHB chief economist, in a statement. “Moreover, despite some cooling earlier this year, the continued strength of single-family construction in 2021 means there are now 28 percent more single-family homes under construction than a year ago. These gains mean single-family completions will increase in 2022, bringing more inventory to market despite a 19 percent year-over-year rise in construction material costs and longer construction times.”
Marvin makes profit-sharing payments
Marvin, also a giant in the window-and-door manufacturing sector, made profit-sharing payments this week.
On Thursday, the Warroad, Minnesota-based company held its annual celebration and announced payments of $10,446,628 to 6,499 Marvin employees.
Employees who got the full payout received $1,716 apiece. Part-time workers received smaller payments.
Marvin’s profit-sharing for 2021 was comparable to 2019, when it paid out around $11 million.
In 2020, Marvin’s profit sharing spiked at $15,326,676 for 5,841 employees. That year, the average profit-sharing check was more than $2,700.
Marvin had developed a pandemic plan well before Covid-19 arrived. The company has had an ongoing employee education campaign with the goal of limiting Covid-19 exposures at Marvin facilities and within the communities where employees live.
Starting in mid-May last year, CEO Paul Marvin required his employees to wear masks. During the summer of 2021, Marvin executives concluded that “those who are fully vaccinated could safely remove their masks,” according to an early September 2021 company update.
However, Marvin company leaders became concerned about new U.S. infections associated with the Delta variant. “Starting Tuesday, September 7, all Marvin employees, regardless of whether you are fully vaccinated or not, must wear a mask while at work,” the company said on its website.
Marvin has hosted vaccination clinics at its workplaces. But it isn’t following Andersen’s lead in requiring vaccinations for new hires or linking vaccinations with profit-sharing eligibility. “While it is strongly encouraged, Marvin does not mandate Covid-19 vaccination,” said Emily Finley, a Marvin spokesperson, on Friday.