McDonalds franchisee serves up benefits to employees

One local employer might have a solution to the nation's low unemployment rate.

Steve Bigari, owner of nine McDonalds restaurants in Colorado Springs, has been master-minding an employment plan during the past five years and recently presented his blueprint to a number of local employers at the Pikes Peak Workforce Center.

Bigari's plan involves taking the low-income wage earner who does not have an education, experience or basic living suste nance, such as child care or transportation,

"The free market is forcing us to took at this (employment) problem differently," said Bigari.

His plan not only assists these limited-skill workers in learning how to take control of their lives, but also can be an asset to other businesses in the community including the high-tech field.

His plan consists of six elements - health care, childcare, transportation, housing, education, and training.

"Most people operate on a crisis basis," Bigari said, adding that most people with limited means haven't learned how to be self-sufficient. If they could reach that level, they would be on a level playing field and have more opportunities in life.

Bigari's healthcare plan will take employees to a fully insured status within two years. When an employee begins working at McDonalds in a non-management position, the hourly pay is close to minimum wage. Because of this, the employee cannot afford to purchase quality health-care insurance.

But because of a deal Bigari worked out with Community Health Centers the non, profit organization, along with the government, contributes more money toward the required premium in the beginning of the program. The average cost of the premium is $16 per month and employers' contributions are based on the number of hours worked the employee. The conceptual model is that the longer an employee stays on the job, the more the employer and employee pay in.

The "Healthy Workforce" program teaches employees about premiums, copays and providers and is in the developmental stage. The purpose is to transition employees to self-sufficiency, said Bigari.

This program will take two years to develop, during which time the government and nonprofits become less invested over time and the employer and employee contribute more money. After two years, the employee is covered by the employers' insurance. This program is designed to-fit any employer, said Bigari, and might take more or less time, depending on the employee's situation.

"The goal is not, will never be, to become a delivery mechanism for public programs - not at all," said Bigari.

His childcare plan includes a childcare facility that was built in conjunction with other nonprofit programs. Employees can take their children to the Sweetwaters Child Care Facility near San Miguel Street and Academy Boulevard.

State monies, through the Colorado Child Care Assessment Program, covers about $87 of the approximate $115 fee the center normally charges. For the center to remain profitable, it needs the remaining amount of money. Because CCAP is implemented through the county, Bigari is negotiating with the El Paso County Department of Health to allow McDonalds' employees to pay the balance - something not permitted under current regulations. When employees meet or exceed the income level for CCCAP recipients, the cut-off of funds is immediate. At that point, the employee and employers would share childcare costs.

"Employees can get "champagne child care at beer prices," said Bigari. With only one Sweetwaters facility in town, Bigari is working on other locations near other McDonalds' restaurants. As the employees' wages increase over time, so too does their responsibility for larger payments.

The employees' contributions come from a "benefits bucket" whereby the employer puts a certain amount of money into an account and the employee can choose what benefits to buy and how much to spend on each. This teaches them to make choices, said Bigari.

Bigari attacks the problem of inadequate low-income housing with the assistance of local subsidized housing programs. Admittedly his weakest link in the plan, he hooks up low-income employees with the right people through associations Such as Habitat For Humanity and Rocky Mountain Land Trust.

Many employees have no way of getting to work. Buses don't cover all areas of town and promise's of rides from other people don't always come through. When a person gets a job, he or she can't always keep it because of lack of adequate transportation. Because of this, Bigari assists his employees by guaranteeing an automobile loan, but not signing the title:

Bigari believes the loan program is a risk worth taking.

"How can I afford not to do it?" asked Bigari, who believes the economic model will prove to be a profitable venture. He projects a positive cash flow in the first year based on turnover reduction. The benefits will be loyalty, quality, sales, and a reduction in absenteeism.

"The people who are poor in spirit, you can pick them out," he said. "There's a big difference between those folks and the people who are economically poor. What I give them is a three- to eight-year-old car that is reliable for two years. They pay $3,000 for the car, they get it at around 9 percent interest, the payments are around $150 and, in two years, they own an asset that's worth $2,000 to $3,000."

Many of Bigari's applicants lack training or basic educational skills, such as a high school diploma or GED. He hooks them tip with the Pikes Peak Workforce Center for evaluation. Once the employee's potential and educational levels are determined and career goals assessed, the workforce center assists that person in choosing a training center or a school and applying for financial aid.

This is where local employers come in. They help dictate school curricula through the Workforce Center. "In the end, I still see it as the competitive venture," said Bigari.

Support for the program could be widespread. State Rep. Mark Cloer is introducing a bill this year that takes a similar approach.

Bigari expects to cut turnover in half at McDonalds with this program. Turnover is typically 200 percent to 250 percent per year, he said, but has confidence this program will change employees' situations.

He also expects it to be a big boost to other employers. When an employee finishes the program, he or she will have the education, living skills, experience, transportation and childcare needed to move forward in the community. This could include working for a high-tech company, remaining at McDonalds, or starting their own business.

"To pull this off, you need incredible trust," said Bigari. He's not sure what the cost of the program will be, but believes he and other employers will receive "10 times the benefits."

"All of the components are right," he said. "The employment Situation is absolutely right for this. When you bring in all the four disciplines the public, private, nonprofit and the individual - once they're working together in collaboration, all the components are in place to make everything work."