Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-08-20
YOUR MONEYS WORTH :
Alcoholism Costs
81 Billion a Year

On-the-job alcoholism has
now become a 50 billion a year
hangover" for American in
dustry.
1t is hitting hardest at the
young middle age man in BUSH
ness-including the extensively
trained, crucially important
middle-management executive.
It is increasing the cost of
"sick leave" and other fringe
benefits to levels far beyond
any dollars-and-cents figures
in a wage contract. It is SINH
larry ballooning absenteeism
and the accident rate in cor
porations.
1t is a hidden" cost to in
dustry of startling magnitude
which is deliberately concealed
by the afflicted worker.
The common estimate that
employe alcoholism costs in
dustry around 81 billion a year
is unrealistically low because of
the traditional reluctance of
corporations to acknowledge
the extent of the problem,
Lewis F. Presnall, industrial
conSultant for the independent,
non-profit National Council on
Alcoholism, stated in an inter-
view last week. THE total cost
is at least double what any,
one suspects"
Estimate May Be Low
Even the estimate of over 50
billion a year could be low, be-
cause, says Mr.. Presnall, Tn
dustry's attitude toward tn e
problem has resulted in a
shocking unwritten company
policy to pay an economic pre-
MUM for the concealment of
alcoholism. This premium
comes in the form of keeping
an alcoholic on the job, pro-
noting him and paying him
fringe benefits. When the al
coholic is in the late stages of
his disease, and can no longer
conceal his condition, the COM
pany ordinarily fires him"
The estimate is that about
3 per cent of all American
workers are alcoholics-about
IT. million to 2 million work.
ers, with the ratio five men to
one woman. OF these, nearly 80
per cent are between IS and
SIS years old. There are no
class distinctions among alco-
holics. The meas studies dis
close they are "proportionately
distributed "a ther evenly
throughout a plant population
from top management to the
unSkilled labor group"
Payments for sick leave and
other fringe benefits run three
times as high for alcoholics as
for those without the disease.
One company surveyed puts the
average fringe benefit cost at
$500 a year for each alcoho-
lie. AbsenteeiSm also averages
three times as high among al
coholics and companies pay ex-
ira millions per year in over
time to workers to fill in for
the sick person.
AS for the accident rate, this
may be double the non-alco-
holic average and this doesn't
take into consideration the
costs Of off-the-job accidents
which impair efficiency of the
worker and make him an alb
sentee. At least Is per cent of
all abSenteeism in some cor
porations is traced to alcohol
ism.
The scope of the problem Is
immense. the problem is grow
ing, and industry finally is
waking up to it.
Remarkable Results
The first alcoholism program
in a major company was be-
gun in 1914. AS recently as four
years ago, only IS big compa-
MES offered these programs
which involve round-the-clock
personal counseling, PSYCHE
atric treatment if necessary
and close cooperation with Al
coholics Anonymous. Today,
the number is up to 80 large
companies, reports Mr.. Pres
nall, and many smaller COM
panies are joining in.
The results are remarkable