FedEx Freight | BIG COST CUTTING NEWS!!! FedEx Moves to Cut Costs, Posts Higher Profit

sorry guys

The economy is still headed down the sewer. Cutting wages gives people less buying power to bolster the economy. Raising prices on goods and services gives us even less buying power. Fedex isn't the only one doing both of these things. How is this supposed to help us recover? The only things going down besides our wages are the value of our homes, and gas. We all know the gas prices are temporary because OPEC wants us hooked on oil again with all this talk of alternative energy. I smell a working class revolution in the works...
I havent seen anything to say they are turning your trucks down, that would help a little,beleave me i know i work for con-way. well at least its upper mgmt. taking the hit rather than you guys. we can all only hope for the best,but next year doesnt look all that great at all!! god-speed gentleman!!:1036316054:
 
sorry guys

The economy is still headed down the sewer. Cutting wages gives people less buying power to bolster the economy. Raising prices on goods and services gives us even less buying power. Fedex isn't the only one doing both of these things. How is this supposed to help us recover? The only things going down besides our wages are the value of our homes, and gas. We all know the gas prices are temporary because OPEC wants us hooked on oil again with all this talk of alternative energy. I smell a working class revolution in the works...
I havent seen anything to say they are turning your trucks down, that would help a little,beleave me i know i work for con-way. well at least its upper mgmt. taking the hit rather than you guys. we can all only hope for the best,but next year doesnt look all that great at all!! god-speed gentleman!!:1036316054:
 
The economy is still headed down the sewer. Cutting wages gives people less buying power to bolster the economy. Raising prices on goods and services gives us even less buying power. Fedex isn't the only one doing both of these things. How is this supposed to help us recover? The only things going down besides our wages are the value of our homes, and gas. We all know the gas prices are temporary because OPEC wants us hooked on oil again with all this talk of alternative energy. I smell a working class revolution in the works...

Do you suggest companies start to pay employees more, and charge less? We're operating on razor thin margins as-is, where do you suppose that money would come from?
 
You did! Does this mean we are only getting our wages cut half as much as Yellow-Roadway workers? I don't like it but, you had to know it was coming. The teamsters vote does not matter. Vote no on 10% concession and the bankers liquidate YELLOW-ROADWAY until they get their money, then they reopen approx. 1/3 their current size. Vote YES and you get a 10% cut in wages and then they merge YELLOW-ROADWAY into one company,and layoff 1/2 their workers. This sucks- but it could always be worse.

There is a correction at the bottom....

Correction: FedEx said Tuesday that it will implement pay cuts for executives and salaried employees. An earlier version of this story incorrectly stated that FedEx is cutting nonunion workers' salaries by 5%.
 
I guess ill be saying goodbye to the managers I like and actually do a great job and treat me decently. They already got hammered on their bonus last year, are undercompensated for hours worked and now this. Get ready for a new crop of managers.
 
Fedex Announcement

What happened today at Fedex is going to effect all of us, no matter what carrier you work for. I believe you will now see all the other carriers, both union and non-union, in the very near future, announce the same type of cost cutting measures (wage freeze and wage reduction). This will reverbrate thru the rest of the industry.YRC is no longer alone on the "island of reduced wages". When YFC made the wage reduction announcement a few weeks ago, it was looked at as a stigma by some customers and other carriers as a desperate measure by a carrier in trouble.Now we have one of the preceived strongest operating carriers announcing a similar type of consession. I believe this changes the perception of what YFC initiated. Now they look like they were ahead of the ball by making the announcement first. As I stated before, I believe we are soon going to all be in the same boat.When I heard the news today I thought of all the Fedex employees who are going to be effected by this and I was saddened by there personal income loss. However, If I was a YRC employee I would have to think you did not take joy in some one else's loss but were glad you were no longer the only carrier alone in this situation. I also think it is quite ironic that the carrier that was in the forefront of trying to capitalize on the YRC situation (remember the letters there drivers were handing out) has to now explain to there customer how the action they have taken is different than what YRC did.I have to add every carrier out there was trying to get there share of the YRC pie, Fedex was not alone I think they were just the most vocal. I do not think FEDEX will lose many managers for the simple fact there isn't any place to go that has a better outlook considering the present state of the economy.The number of carriers around has substandardly dropped from only a few years ago. In turn, so have the employment opportunities. My advice to everyone out there, no matter what carrier you work for, is work as hard as you can over the next year, If your a driver ask for additional freight when you make a pick up,if you are in sales make as many sales calls and look for additional business from both existing and new accounts, if your in ops find ways to cut cost without cutting corners and having the service suffer. The hardest working and the most adaptable carriers are still going to be standing when the smoke clears and 2010 rolls around. Years ago I had a manger who had a plaque on his desk that had the following statement on it: Every day a Lion wakes up in the jungle and knows he has to out run the slowest Gazelle in order to survive. Every day a Gazelle wakes up in the jungle and know he has to out run the fastest Lion in order to survive. Whether your a gazelle or a Lion, when you wake up in the morning you better be running.

I think that applies now more than ever.
God Bless and Good Luck to us all and may the best company win
 
njman: I think the difference is that YRC did it simply to survive; FedEx is doing it as a proactive step to gear down and settle in for a long year. It doesn't appear we're in anything near the financial shape that they are.

oaf
 
Weather we like it or not I think that some of the old hands at Fedex still carry some of the AF values and pride with them everyday. They might say they don't but what Mr Garrison gave us as far as work ethics will stay with us the rest of our lives.
I hope this will help us through these rough times we are going through and maybe rub off on some of the guys that didn't have the pleasure to work for American Freightways.
 
big big difference between yrc and fed-ex fellas ...fed-ex is using a proacitve approach while yrc is forced to be reactive...only the strong will survive.. we'll see who's left standing.
 
Ok,,,,,, so we are getting a pay cut ?????????????

no 365 the hourly employees are not taking a pay cut. All management is taking a 5% pay cut the higher ups are taking a 7.5 to 10% and Fred himself is taking a 20% pay cut. 401k company match will be suspended until 2010 after Feb 1st and no bonus for FY09. This all to help avoid any future job loss on the hourly side in the future.

**Side note after todays news i now have an 06 harley roadglide for sale incase anyone is looking send me a pm and i can give you more details:sadwavey:[
 
The pay cut does not directly impact the hourly wage of driver, nor the number of hours/miles they get.

401k cuts will impact drivers.

In Harrison, every department I've spoken to has taken a mandatory 10% decrease in all hourly employees - as in, hourly office workers get 36 hours, instead of 40.

FedEx is doing what is necessary to stay profitable. Yes, it hurts, I know. I was impacted by this. But it is the sign of a strong company to stay out in front like this.
 
oaf smart minds think alike...i practically posted the same thing.....yellow is hurting for sure...its inevitable and will be tuff to swallow...bunch of shippers i talk to are saying they are looking for back up carriers already...beginning of the new year will be interesting
 
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