He said some senior employees perform 40 percent of their work at home.
It was originally also used as housing for the most senior employees.
He was the Union's most senior employee, having worked there for over 26 years.
Some senior and key employees may quit rather than accept the new rules.
Eight former senior employees of the subsidiary were found guilty on June 7, 2010.
The remaining $600 million was spread among several hundred senior employees.
A group of senior employees said they would file a lawsuit to block the testing.
Eleven senior employees, including the president and creative director, later left for that agency.
At present, the most senior employees pay nothing to the retirement system.
After Killam's death in 1955 the company was bought by its senior employees.