Big Tax Cut for companies to go back to workers. How much will FDX pay u$?

[vantexan]

FedEx's 10 step plan forgot about the current employees who have been there 10, 12, 15 years. They will still be 20 years to top out. Instead of saying "if you've been here 10 or more years, you'll be automatically topped out", they said "if you've been here 15 years, you'll be topped out in just 5 more. If you've been here 10 years, you'll be topped out in just 10 more." So those employees got nothing out of the new plan. I know people who have been there 12 years and were put on step 2. I don't think the new plan is that fair for either new hires or older time employees. Sure it's better than the old system, but it's still a turd. And it's not called the "10 year plan" it's the 10 step plan. It still could take more than 10 years. They could say "we had a bad year, so there won't be any step progression this year."

Actually the current plan takes 9 years. And if you read my posts above or previously you know I don't think it's fair that a 10 year employee is looking at 8 more years or whatever. Even a 3 year employee should be further up the ladder than a new hire.

Concerning how much we get paid. The company does take in tens of billions annually but it also spends about half on payroll. And another large chunk on fuel. It clears what in profit, about 2 billion? 3 billion? That's where the money for raises comes from and they've just implemented a new raise system that is fair for the type of work being done. The job might be hectic, but it's no longer the job couriers did before FedEx Ground came along. And the company isn't going to give everything to the couriers. They have a fiduciary responsibility to the stockholders. They have capital expenditures on equipment. It's unrealistic to think that they will pay anymore than they have to to keep people. And bbsam that's not defending the company, that's being honest. No one wants to hear it, no one wants to admit it. What they did stringing us a long for more than a decade so that they could build up Ground and still keep up profits was wrong, but now new people do get to benefit from that with decent pay for what they do. If $26hr+ on the lowest payscale isn't fair then show me all the jobs on indeed or craigslist that pay nearly as much. It's a tough world out there, get topped out and hang on. Or get some training in something better.

 

[fedx]

Actually the current plan takes 9 years. And if you read my posts above or previously you know I don't think it's fair that a 10 year employee is looking at 8 more years or whatever. Even a 3 year employee should be further up the ladder than a new hire.

Concerning how much we get paid. The company does take in tens of billions annually but it also spends about half on payroll. And another large chunk on fuel. It clears what in profit, about 2 billion? 3 billion? That's where the money for raises comes from and they've just implemented a new raise system that is fair for the type of work being done. The job might be hectic, but it's no longer the job couriers did before FedEx Ground came along. And the company isn't going to give everything to the couriers. They have a fiduciary responsibility to the stockholders. They have capital expenditures on equipment. It's unrealistic to think that they will pay anymore than they have to to keep people. And bbsam that's not defending the company, that's being honest. No one wants to hear it, no one wants to admit it. What they did stringing us a long for more than a decade so that they could build up Ground and still keep up profits was wrong, but now new people do get to benefit from that with decent pay for what they do. If $26hr+ on the lowest payscale isn't fair then show me all the jobs on indeed or craigslist that pay nearly as much. It's a tough world out there, get topped out and hang on. Or get some training in something better.

UPS for one. It's a direct competitor. It's FedEx's closet competitor. You can't look at what a secretary job pays on indeed to compare it. FDX makes $60 billion (gross) annually and nets $3 billion after all expenses, including taxes and wages. Most of their expenses include buying news trucks/trailers/vans for FedEx Ground, new aircraft, and buying up competitors. I've noticed lately every time I see a FedEx Ground semi, it's almost always pulling a shiny, brand new 53' or 28' pup trailer. I agree $26/hr is great pay, but the fact that it will take at least ten years to reach it is the issue. Five years would be great and three years even better. The fact that they used to top out people in 3-36 months means it was possible and still could be.

 

[vantexan]

UPS for one. It's a direct competitor. It's FedEx's closet competitor. You can't look at what a secretary job pays on indeed to compare it. FDX makes $60 billion (gross) annually and nets $3 billion after all expenses, including taxes and wages. Most of their expenses include buying news trucks/trailers/vans for FedEx Ground, new aircraft, and buying up competitors. I've noticed lately every time I see a FedEx Ground semi, it's almost always pulling a shiny, brand new 53' or 28' pup trailer. I agree $26/hr is great pay, but the fact that it will take at least ten years to reach it is the issue. Five years would be great and three years even better. The fact that they used to top out people in 3-36 months means it was possible and still could be.

But UPS trucks most of it's freight. It's mostly why FedEx has gotten more profitable, the Ground division is just cheaper to run. Don't you think if anyone should get more pay it should be Ground drivers? And you aren't really addressing the overhead issue. If FedEx shells out about half of it's gross $60 Billion in payroll, and after all expenses it has about $3 Billion in profit, how can it possibly pay its couriers, the single largest group of employees by far, comparable pay to UPS? Again if any one group at FedEx should be receiving better pay it's the Ground drivers. No, they aren't employees, but FedEx should give more to the contractors and require them to use it to pay their employees more. If you are against workers in China getting slave wages so that we can have cheap stuff here, then certainly you would be happy with the current pay plan if it will enable FedEx to pay decent wages to the Ground drivers. Right?

 

[MAKAVELI]

But UPS trucks most of it's freight. It's mostly why FedEx has gotten more profitable, the Ground division is just cheaper to run. Don't you think if anyone should get more pay it should be Ground drivers? And you aren't really addressing the overhead issue. If FedEx shells out about half of it's gross $60 Billion in payroll, and after all expenses it has about $3 Billion in profit, how can it possibly pay its couriers, the single largest group of employees by far, comparable pay to UPS? Again if any one group at FedEx should be receiving better pay it's the Ground drivers. No, they aren't employees, but FedEx should give more to the contractors and require them to use it to pay their employees more. If you are against workers in China getting slave wages so that we can have cheap stuff here, then certainly you would be happy with the current pay plan if it will enable FedEx to pay decent wages to the Ground drivers. Right?

They do pay comparable hourly rates in some areas. Top pay for swing in market B4 is $35+ an hour. But that's not the issue. The issue is how long it takes to reach max pay. Mid range employees got houses with this 10 step pay plan.

 

[shadey]

I posted about AT&T laying off people and you talk about FDX giving me bad info. Is that what you are saying now? You have been all over the place in this post.

Rigghhhttt. Ok chief, whatever gets you through the day.

 

[vantexan]

They do pay comparable hourly rates in some areas. Top pay for swing in market B4 is $35+ an hour. But that's not the issue. The issue is how long it takes to reach max pay. Mid range employees got houses with this 10 step pay plan.

Oh I pointed out that if the lowest payscale is $26hr+ then I think it's fair. You can bet that where they pay $35hr they have to due to local conditions. But good ol' FedEx in numerous very expensive places pays the lowest or next lowest payscale because while expensive the local economy is primarily retail and tourism. Flagstaff, AZ or Jackson, Wy for example.

After what we went through I don't think 9 years is unreasonable to top out. A 24 yr old tops out at 33. But I agree that those with years in already should be on an accelerated path to top pay. Just as those who chose to stay in the traditional should've been allowed to stay in it until they got 25 years in before being forced into the new plan. But fairness isn't one of the company's strong suits. Be thankful twenty somethings weren't willing to stick around, because without a union there was no chance at better pay if turnover wasn't high enough.

 

[MAKAVELI]

Oh I pointed out that if the lowest payscale is $26hr+ then I think it's fair. You can bet that where they pay $35hr they have to due to local conditions. But good ol' FedEx in numerous very expensive places pays the lowest or next lowest payscale because while expensive the local economy is primarily retail and tourism. Flagstaff, AZ or Jackson, Wy for example.

After what we went through I don't think 9 years is unreasonable to top out. A 24 yr old tops out at 33. But I agree that those with years in already should be on an accelerated path to top pay. Just as those who chose to stay in the traditional should've been allowed to stay in it until they got 25 years in before being forced into the new plan. But fairness isn't one of the company's strong suits. Be thankful twenty somethings weren't willing to stick around, because without a union there was no chance at better pay if turnover wasn't high enough.

There's no way a 10-15 year driver should be made to go through progression.

 

[vantexan]

There's no way a 10-15 year driver should be made to go through progression.

No argument but what can you do about it?

 

[bbsam]

No argument but what can you do about it?

Maybe the benevolent corporation that is Fedex can use a small portion of their tax savings to bring those couriers up to full scale. I mean, that's a perfect example of what's been sold so far, isn't it?

 

[vantexan]

Maybe the benevolent corporation that is Fedex can use a small portion of their tax savings to bring those couriers up to full scale. I mean, that's a perfect example of what's been sold so far, isn't it?

Did I say they were benevolent? I know you're smarting over the tax plan being passed, and all those corporations didn't keep it all as predicted here, but FedEx is run by ruthless SOB's. Which has been my point, why, even if they could afford it, would they willingly do such a thing? It's not in their nature. By the way, if the profit is 3 billion, and taxes are a percentage of that profit, how would the tax savings benefit employees much if the whole profit won't benefit them?

 

[vantexan]

In your case it would be instant potatoes.

You say instant potatoes, I say instant potahtoes.

 

[bbsam]

Did I say they were benevolent? I know you're smarting over the tax plan being passed, and all those corporations didn't keep it all as predicted here, but FedEx is run by ruthless SOB's. Which has been my point, why, even if they could afford it, would they willingly do such a thing? It's not in their nature. By the way, if the profit is 3 billion, and taxes are a percentage of that profit, how would the tax savings benefit employees much if the whole profit won't benefit them?

Why? They wouldn't. That's been my point all along. They got theirs. Screw you and everyone else. That's the point.

 

[59 Dano]

Just another redneck proverb with references to homosexuality and bestiality. Typical of people from that part of the country.

And which part of the country is home to you?

 

[59 Dano]

FedEx needs to have something "competitive" to this. They are competitors to UPS after all.

They are competitive. The job at Express is easier than the job at UPS. The UPS job, even as described to me by UPS drivers who are company Kool-Aid men, is far more demanding than the Express job. If you want a great compensation package, go to UPS and work hard for it. If you want relaxed standards and greater flexibility with expectations and whatnot, go to Express and get it w/a smaller paycheck.

It all depends on what you're looking for.

 

[vantexan]

Why? They wouldn't. That's been my point all along. They got theirs. Screw you and everyone else. That's the point.

And yet there's people here saying they should do this or that. They aren't for two reasons. There's a limit to what they can do and they're not willing to do more than they have to. They hold the cards, be thankful that they did come up with a better play plan.

 

[bacha29]

UPS for one. It's a direct competitor. It's FedEx's closet competitor. You can't look at what a secretary job pays on indeed to compare it. FDX makes $60 billion (gross) annually and nets $3 billion after all expenses, including taxes and wages. Most of their expenses include buying news trucks/trailers/vans for FedEx Ground, new aircraft, and buying up competitors. I've noticed lately every time I see a FedEx Ground semi, it's almost always pulling a shiny, brand new 53' or 28' pup trailer. I agree $26/hr is great pay, but the fact that it will take at least ten years to reach it is the issue. Five years would be great and three years even better. The fact that they used to top out people in 3-36 months means it was possible and still could be.

Wait a minute here. At Ground the trailers you see are for the most part leased. The tractor pulling it belongs to the line haul contractor. The guys who are driving the contractor owned trucks would leap at 26 an hour with benefits because they're not making anywhere near that but more importantly when X corporate sees the performance of Ground relative to what Ground guys are making I don't think that there's any doubt that it impacts the compensation package being offered at Express.

 

[fedx]

Wait a minute here. At Ground the trailers you see are for the most part leased. The tractor pulling it belongs to the line haul contractor. The guys who are driving the contractor owned trucks would leap at 26 an hour with benefits because they're not making anywhere near that but more importantly when X corporate sees the performance of Ground relative to what Ground guys are making I don't think that there's any doubt that it impacts the compensation package being offered at Express.

I'll be the first to admit I don't know the inner workings of FDX. I do believe the Ground trailers are leased from FedEx. They are brand spanking new trailers. If they are being leased, I'm sure they're being leased really cheap because all I see are new trailers at Ground. While Express' trailers are starting to rust out and look like crap, because most were made back in the 90s, Ground has new trailers. FDX is also more profitable than Ground. A box that costs $20 to ship on Ground would cost $100 on Express. FDX is using that profit margin from Express to build up Ground with new equipment.

 

[bacha29]

I'll be the first to admit I don't know the inner workings of FDX. I do believe the Ground trailers are leased from FedEx. They are brand spanking new trailers. If they are being leased, I'm sure they're being leased really cheap because all I see are new trailers at Ground. While Express' trailers are starting to rust out and look like crap, because most were made back in the 90s, Ground has new trailers. FDX is also more profitable than Ground. A box that costs $20 to ship on Ground would cost $100 on Express. FDX is using that profit margin from Express to build up Ground with new equipment.

While the total profit at Express is higher than Ground due to a higher revenue base, the net operating margin which is the percentage of return on the invested money is significantly higher at Ground. At one time Ground's net operating margin was more than double that of Express but has come down due to the cost of the ongoing expansion of it's capacity. Will full utilization of that capacity be reached sometime soon? Obviously they wouldn't have incurred that expense if they didn't believe they could.

 

[vantexan]

I'll be the first to admit I don't know the inner workings of FDX. I do believe the Ground trailers are leased from FedEx. They are brand spanking new trailers. If they are being leased, I'm sure they're being leased really cheap because all I see are new trailers at Ground. While Express' trailers are starting to rust out and look like crap, because most were made back in the 90s, Ground has new trailers. FDX is also more profitable than Ground. A box that costs $20 to ship on Ground would cost $100 on Express. FDX is using that profit margin from Express to build up Ground with new equipment.

Actually the reason FedEx was so intent on starting Ground is that there's more profit per package shipping by truck than by plane. FedEx will always have an overnight delivery service by plane, but Ground is where the money is at. It's the reason UPS can afford to pay it's drivers more. It's very expensive to fly packages. And since FedEx Ground pays it's drivers much less than what UPS does, not to mention no benefits, it can undercut already low UPS prices. As it's system grows it'll continue to take business from UPS, which is kind of stuck with it's union wages and benefits. And before anyone starts saying I'm defending FedEx I'm just pointing out the reality of the situation. FedEx has figured out how to insure growth in an industry where it seemed the market was stagnant. And literally everyone working in the industry will be affected. As FedEx Ground eats up market share it will become more difficult for UPS to continue to pay high wages with great benefits. Will be interesting how that plays out in future contract negotiations.

 

[Jkloc420]

Actually the reason FedEx was so intent on starting Ground is that there's more profit per package shipping by truck than by plane. FedEx will always have an overnight delivery service by plane, but Ground is where the money is at. It's the reason UPS can afford to pay it's drivers more. It's very expensive to fly packages. And since FedEx Ground pays it's drivers much less than what UPS does, not to mention no benefits, it can undercut already low UPS prices. As it's system grows it'll continue to take business from UPS, which is kind of stuck with it's union wages and benefits. And before anyone starts saying I'm defending FedEx I'm just pointing out the reality of the situation. FedEx has figured out how to insure growth in an industry where it seemed the market was stagnant. And literally everyone working in the industry will be affected. As FedEx Ground eats up market share it will become more difficult for UPS to continue to pay high wages with great benefits. Will be interesting how that plays out in future contract negotiations.

you will get a kick out of this