She Made it Look Easy

Last week Sherwin-Williams chief executive Heidi Petz emailed her more than 60,000 employees to let them know that their company would no longer match their 401(k) contributions. 

A confounding and wholly unnecessary action which cost all Sherwin employees 6% of their total compensation.

Petz told her team the action was necessitated by “weaker than expected” sales which are only “getting worse,” headwinds Petz expects to continue for at-least another year according to the email.

Petz called the action a “difficult decision” without further detailing the need, which I would have expected given that just two-weeks ago Sherwin reported a near record $1.3 billion profit in the second quarter.  Enough to match every 401(k) contribution for five years earned in a quarter, though Petz has other plans for the money. Because (nearly) all Sherwin earns is committed to dividends and stock buybacks, higher priority to Petz than fairness towards her staff.    

Not two-hours after Heidi hit send a screenshot of her email landed in my inbox, appearing authentic and coming from a responsible source I posted the news on LinkedIn.  Reaching more than 60,000 people that first day it would be the first of two viral posts I would have last week.

On that day and days since I’ve been inundated with outreach from employees of Sherwin-Williams, who claim in great number that their jobs would be at-risk were they to reply or comment to my posts on LinkedIn. Though that did not stop them from letting me know how they felt.

Intermixed though with the acrimony for Petz’s action and a plethora of ordinary gripes were multiple contacts far more concerning.  Some alleged a pattern of diabolical dealings at Sherwin-Williams, with conversations about wage theft, retaliation and unsafe working conditions all coming that first day. 

The next day I updated my reporting adding that the employees who had contacted me had lost confidence in Petz, the second post to go viral last week.

With little support for Petz's action in the comments.

“One Sherwin” is right to lose faith in their leader, who has shown that they lack the empathy and judgement needed to be trusted with such great weight.  That she would take such an action while her compensation swells shows she also lacks ethics and should be removed from her post before she does any more damage.

Petz's last raise was enough to match the 401(k) contributions of more than 5,000 employees, who will not forget and have no reason to forgive.  A carpetbagger from Valspar who never put a gallon in a Sherwin-Williams shaker Petz’s tenure is now terminal.

Not just for her contribution Sherwin’s current lament, though that would be enough. But for expressing a wanton disregard in her care for her employees, who Petz is no longer in a position to lead.

For most of my career my following here was comprised of the employees and dealers of Benjamin Moore, my former coworkers and brethren.

But coverage of the Kelly-Moore affair expanded that demographic as employees from that firm sought out news of their future, which it turns out they did not have.  The divestiture at PPG and machinations at Pittsburgh brought even more attention, though nothing like my experience last week.

Because joining the conversation here last week was Sherwin-Williams nation, One SHW representing enough people that I thought I’d end with a direct message to them all.

Since I already told Heidi what I had to say!

If Sherwin-Williams employee believes that they have been treated unethically or illegally I encourage them to contact me here, you have my assurance that all communications will be held in confidence until my daughter is an orphan.  And that my only use for anything you share will be to inform my writing here.        

And thank you to those who have reached out already, I’m honored by your trust.

To the rest of One SHW thanks for following along, I’d be covering this story anyway but your presence here ensures ongoing reports.  Because I’ve never been a fan of the way Sherwin treats their employees, and admit that I love the attention.