FedEx Freight | Trump's corporate tax cut for the windfall

I wouldn’t get my hopes up just yet. Yeah, $200M is a big stack of coin but to cover all non-salaried employees spread across all op-cos, $200M won’t go far IMO...but I could be wrong.

Same goes for the pension, guess we’ll see....and don’t get it twisted, I’m very grateful for any and everything they want to give us, I’m just sayin’...
 
I wouldn’t get my hopes up just yet. Yeah, $200M is a big stack of coin but to cover all non-salaried employees spread across all op-cos, $200M won’t go far IMO...but I could be wrong.

Same goes for the pension, guess we’ll see....and don’t get it twisted, I’m very grateful for any and everything they want to give us, I’m just sayin’...
Red, you make a good point. A disappointing point, but absolutely true. One consolation, this is only what they've chosen to do the first year. Another would be the extent of this "early" raise.

From what I've read, that $200M in increased compensation spending comes solely from moving the wage increase from October to April. Nothing more, in terms of an added increase. Also, only 2/3 applies to hourly, remaining 1/3 goes to salaried incentives (bonus). This makes sense because, as you point out, that is a fairly small number. More on the numbers later.

The pension number is a VERY BIG number in anyone's book. That is another one we'll dive into later. Does it mean what some think it means? I think you have to pay close attention to the wording. Stay tuned.

We have the public numbers on what the Board of Directors approved, but we don't yet know exactly how leadership will apply them. We can speculate, if anyone wants to. Some of it gets tricky, since we (I) don't have access to enough hard numbers, or exactly how they will be applied.

Plenty to look at, over time... Still digesting it. Not going to waste too much time right now, if at all. So, if anyone else wants to take a stab at it, please feel free...

I have more questions than answers... At the moment, I'm not crazy about the few answers I do have. But, then again, I could be wrong.
 
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Red, you make a good point. A disappointing point, but absolutely true. One consolation, this is only what they've chosen to do the first year. Another would be the extent of this "early" raise.

From what I've read, that $200M in increased compensation spending comes solely from moving the wage increase from October to April. Nothing more, in terms of an added increase. Also, only 2/3 applies to hourly, remaining 1/3 goes to salaried incentives (bonus). This makes sense because, as you point out, that is a fairly small number. More on the numbers later.

The pension number is a VERY BIG number in anyone's book. That is another one we'll dive into later. Does it mean what some think it means? I think you have to pay close attention to the wording. Stay tuned.

We have the public numbers on what the Board of Directors approved, but we don't yet know exactly how leadership will apply them. We can speculate, if anyone wants to. Some of it gets tricky, since we (I) don't have access to enough hard numbers, or exactly how they will be applied.

Plenty to look at, over time... Still digesting it. Not going to waste too much time right now, if at all. So, if anyone else wants to take a stab at it, please feel free...

I have more questions than answers... At the moment, I'm not crazy about the few answers I do have. But, then again, I could be wrong.
Giving us the raise 6 months early will be a good chunk of cash. Assuming only a $1.00 per hour increase like last year, which is probably on the low side considering the ongoing driver shortage and the rapid growth we are experiencing that is $40.00 per week at just straight time. 26 weeks times $40.00 is $1040.00. When you factor in overtime which is always a given in our profession this will be a nice windfall. Old Dominion only gave a one time bonus of around $500.00 to their employees. The pension contribution will need clarification from Fedex to determine how each of us is affected, but 1.5 BILLION DOLLARS is a hell of a chunk of change. GO FEDEX!!!!!!!!!
 
Giving us the raise 6 months early will be a good chunk of cash. Assuming only a $1.00 per hour increase like last year, which is probably on the low side considering the ongoing driver shortage and the rapid growth we are experiencing that is $40.00 per week at just straight time. 26 weeks times $40.00 is $1040.00. When you factor in overtime which is always a given in our profession this will be a nice windfall. Old Dominion only gave a one time bonus of around $500.00 to their employees. The pension contribution will need clarification from Fedex to determine how each of us is affected, but 1.5 BILLION DOLLARS is a hell of a chunk of change. GO FEDEX!!!!!!!!!

Easy there Crazy Eddie, 1.5 Billion divided amongst 500,000 employee pensions...3,000.00. That amount is "Insane'!.. (obviously I'm being sarcastic).

Me? I say keep your 3,000 and give us an added week of vacation and call it a day. Hell, anyone can see the vacation policy is archaic in this day and age. Millennials and others value family time and free time much more than they use to. Hell, if Europe can do it so can we. A week off per year? What a f'n joke. Hell I don't require pay for an extra 5 days.
And a bonus would be silly since the Gov takes damn near half of it.

And the driver shortage is for OTR and not LTL
 
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I wouldn’t get my hopes up just yet. Yeah, $200M is a big stack of coin but to cover all non-salaried employees spread across all op-cos, $200M won’t go far IMO...but I could be wrong.

Same goes for the pension, guess we’ll see....and don’t get it twisted, I’m very grateful for any and everything they want to give us, I’m just sayin’...

Grateful, yea ok sure. But
Our terminal manager said there would be 2 raises this year, one in April and one in October

I didn’t get that from the article. Why would they give a raise in April and another a few months later. That’t be silly. He’s reading it incorrectly
 
Easy there Crazy Eddie, 1.5 Billion divided amongst 500,000 employee pensions...3,000.00. That amount is "Insane'!.. (obviously I'm being sarcastic)
Grateful, yea ok sure. But


I didn’t get that from the article. Why would they give a raise in April and another a few months later. That’t be silly. He’s reading it incorrectly


His reading comprehension is a bit skewed "allocated to employees by advancing the 2018 annual pay increase to April 1 rather than the normal October increase date"
 
Giving us the raise 6 months early will be a good chunk of cash. Assuming only a $1.00 per hour increase like last year, which is probably on the low side considering the ongoing driver shortage and the rapid growth we are experiencing that is $40.00 per week at just straight time. 26 weeks times $40.00 is $1040.00. When you factor in overtime which is always a given in our profession this will be a nice windfall. Old Dominion only gave a one time bonus of around $500.00 to their employees. The pension contribution will need clarification from Fedex to determine how each of us is affected, but 1.5 BILLION DOLLARS is a hell of a chunk of change. GO FEDEX!!!!!!!!!

Hammer, you make a valid point. Yes, based on $1 raise that does equate to the equivalent of a $1000 bonus. Fair enough. I'll show you later how this is, in FACT, a likely scenario and a rough estimate of the true (and only) gain that we are going to see, this year. Disappointing.

On the pension front, even if we include the entire worldwide workforce, the number ($1.5B) would be impressive, IF it were an increase in the benefit. BUT IT IS NOT. Based on 400,000 employees, that would be an average of $3750 per. Again, NOT the case. This is merely an effort to more fully fund CURRENT pension LIABILITIES. Zero monetary gain to any employee. Only bragging rights for being the "most well funded", as press releases state. Disappointing.

THE ONLY saving grace (this year) will be the extent of this early raise. The numbers will show that it won't be massive, but more like "what the market will bear". The $200M cost, to give the raise early, also shows that they already have a good idea how much it will be.

I want to be wrong, really I do. Please show how I am.
 
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The added dollar per hour is nice but it’s basically a slap in the face to road drivers, we’d like to see at least 2-3 cents more on the mile, that’s about what it would take to equal that dollar per hour raise percentage wise...just sayin’
 
I am disappointed in the pension contribution as last time I checked we are about $3 billion short. So that $3000 each may not be the correct path of thinking. It may just be being announced to sound good but really just being used to shore it up. Until clarification that benefit will remain on hold. My push for 100% match on the first 7% of the 401(k) would have cost the company about $64 million each year. In my opinion a much better option for us then the announced pension. The $200 million is not a lot when you divide all the pie.
 
I am disappointed in the pension contribution as last time I checked we are about $3 billion short. So that $3000 each may not be the correct path of thinking. It may just be being announced to sound good but really just being used to shore it up. Until clarification that benefit will remain on hold. My push for 100% match on the first 7% of the 401(k) would have cost the company about $64 million each year. In my opinion a much better option for us then the announced pension. The $200 million is not a lot when you divide all the pie.


Look, to be fair, it wasn't my intention to sound ungrateful, but this company stands to make billions with this tax plan. I mean, sure, I'll take a buck an hour, but don't **** on my foot and tell me it's raining
 
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The $200 million is not a lot when you divide all the pie.

We have to make some assumptions, and guess a little bit, but if there are 300,000 U.S. employees splitting $200M, that means the average gain would be a $667 windfall. Really? That does fall in line with Hammer's estimate of around $1000 gain for "Freight" drivers, due to an early raise.

So much for gaining any recruiting edge in the marketplace...
 
We have to make some assumptions, and guess a little bit, but if there are 300,000 U.S. employees splitting $200M, that means the average gain would be a $667 windfall. Really? That does fall in line with Hammer's estimate of around $1000 gain for "Freight" drivers, due to an early raise.

So much for gaining any recruiting edge in the marketplace...
Remember only 2/3rds of that goes to hourly
 
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