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

FL4823 said:
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:[
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Thanks for the info buddy ! Guess this hasn't reached our 'supervisor' at the hub who keeps us as long as he can..... :chairshot:
 
I'm glad to see FedEx doing whatever they have to do to stay strong. I don't like the way people were laid off, I sure would have liked FedEx to have given them a better severance package.
This will also give all those who **** and moan about EVERYTHING something more to **** and moan about.
 
FreightHauler said:
It won't be long until the cut trails down to the drivers. Although as someone stated previously in the thread, not getting our 401k's matched seems like a pay cut to me.
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It won't surprise me if your right...

While FredSmith taking a 20% cut is largely symbolic, I do feel for the work a day management guys. 5% might not seem like much but month after month, that's gonna hurt.

Also, I wouldn't be surprise if it was to trickle down to us as well in due time. And YES the 401k Match elimination is indeed a pay cut. Better than an hourly cut, but a cut none the less.

Sad day folks:console:

Was it nessasary? I'm not so sure. We can debate it but it seems we'll be wasting out breath (or keystrokes).
 
Buttnaked said:
I'm glad to see FedEx doing whatever they have to do to stay strong...
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Stay strong? Or keep operating ratios at maximum no matter what.

I'm all for digging in and doing my part, going the extra mile, etc. But at what point will they ask us to do too much for too little. Do you have a $ figure in mind?

Remember we've been running at record profits for sometime... so comparing year over year numbers can be mis-leading.

Never mind, more wasted keystrokes...
 
What kind of a message board is this when a 'moderator' has to edit and eliminate anything that is negative. Let the people speak there opinions Familyman. FedEx paints this rosy picture but the guys you see on the street both ground and freight have to work two jobs to make ends meet. Ever heard of 'free speech' ?
 
God I hope I dont see a fx superbowl comercial, or that number 11 car or the pga tour. in 09. FED EX is a household name brand. Do we need all that? Lets put our people first, the hard working men and women who bleed purple. GOD BLESS ALL
 
Old AF said:
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
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I wouldnt be too cocky.....this ground contractor forced buyout is going to cost FedEx billions. I have no idea how they have kept this so quiet in the media but I have a buddy who owns three routes and he is completely clueless about his future employment at FedEx. They have ruled against FedEx but FedEx appealled it so its just a high stakes waiting game for now.
 
fr8insider said:
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?
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Who's "we"? Are you the CEO of Fedex and now you're only getting $40,000,000 instead of $50,000,000 after your 20% cut? Is that a "thin margin" over what your hourly employees make? One of the reasons the economy is in the shape it's in now is executive officers and upper management got used to excessive salaries and bonuses that started when the Reagan era boom made it possible. The economy starts in a downturn, wages, benefits, and available jobs are less thanks to trying to compete with lesser economies due to NAFTA and WTO. Yet, no matter how much sales were down, top dogs wanted THEIR yearly raises and bonuses at the same rate or higher. So here we are. Before I wrote that, I didn't know Fedex was leaving their hourly employees alone. I commend them for starting to trim the fat at the top first, where there's alot of fat to trim. YRC is doing just the opposite. Backstabbing Hoffa made a deal with their management no matter how the votes are counted. Management gets their lesser paycut restored in a year, we have 4 years to go, will never make the money back, no matter how the economy picks up in the meantime. So no, I don't suggest we pay employees more, just let them make what they are now! Don't take away what we worked years to get to. I would've voted for a yearly wage freeze like Yellow did 5 years ago to management till things picked up 2 years later. Pricing, let supply and demand dictate that.
 
Fed Ex Corporation, get rid of ALL sports endorsements!!!
Do the right thing! Put on hold corporate perks to Officers, high bonuses to the top 10!

Keep the backbone of the Corporation employed, the lowly employees that keep the Corporation profitable.

What ever it takes to keep your employees employed and providing for their families. SET AN EXAMPLE TO THE REST OF THE WORLD.And your stocks WILL continue to grow.


I wonder if higher up at Fed Ex Corp. read the above paragraph I posted a week or so ago. Either way, it's nice to know that management is taking the first step, rather than the lowly blue collar employee. THANK YOU for setting an example!!!:USA:
 
For those who are saying the pay cut doesnt effect hourly employees is wrong. Hourly employees are getting reduced hours therefore that IS A PAYCUT. So everyone is.
 
SwampRatt said:
Stay strong? Or keep operating ratios at maximum no matter what.

I'm all for digging in and doing my part, going the extra mile, etc. But at what point will they ask us to do too much for too little. Do you have a $ figure in mind?

Remember we've been running at record profits for sometime... so comparing year over year numbers can be mis-leading.

Never mind, more wasted keystrokes...
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So you think they're out to get us ? This is the best driving job in the nation. This company has paid me $81,000 this year, hard for me to see how they are out to get me. And yes, we need to pay attention to what is happening, on the other hand there are people who are going to whine and complain regardless of what happens. I personally get tired of hearing it, in my opinion, an IQ issue.
 
FXNL555 said:
For those who are saying the pay cut doesnt effect hourly employees is wrong. Hourly employees are getting reduced hours therefore that IS A PAYCUT. So everyone is.
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When (if!) business picks up, those hours will come back, and quick.

The way I read the news wires, the salaried cuts are permanent, and they won't get any normally scheduled raises until 2010. So if a manager got his annual increase in November, he won't get another one until November 2010.

oaf
 
Once the global economy stabilizes, things will never be the same across the globe. We should learn from this and go back to living within our means. IN THE END, GREED BENEFITS NO ONE!!!
 
The only way to survive the current conditions is to make changes before you have to. As much as it sucks we all have jobs even the ones that think everything is bad and will never get better at work. 6.75% of America does not have jobs and I know a few of them personally. These people always gave 110% and they were asked to stay home so the complainers and entitled could stay working..... Let’s get real look in the mirror and do what needs to be done every day. All of us hourly and salaried need to work our asses off so we can get the employees back that sacrificed for us. When the freight returns we can go back to talking crazy Union crap to get what we want but now we need to hit the street hard and get as much freight as possible. You can stay in fantasy land if you want but when that turns in Armageddon you will have no one to blame but yourself. Decisions we make now will affect us months and or years later. If we have learned anything I hope as a group we have the ability to learn that.... Good luck to us all.. We make our destiny it just does not happen. :smillie_flag::smillie_flag
 
Warning ....
Don't start talking union in this no union forum Jonny5 or anyone else.

Thanks / Smokestack
 


After 46 posts, and nobody has yet figured out that a
401K freeze is the equivalent of a 3.5% pay cut.
But then most everybody only look at their take home pay.
Same reason why government gets away with ever higher taxes. We only look at the take home pay part of the check and don't think twice about all the taxes deducted from the gross.
Bottom line.
Even salaried employees that are taking a 5% pay cut are actually taking a 8.5% pay cut when you include the 401K match.
And no cost of living increase for 2009.

:popcorn:








 
Buttnaked said:
So you think they're out to get us ? This is the best driving job in the nation. This company has paid me $81,000 this year, hard for me to see how they are out to get me. And yes, we need to pay attention to what is happening, on the other hand there are people who are going to whine and complain regardless of what happens. I personally get tired of hearing it, in my opinion, an IQ issue.
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:wtflol:
Hey Butt... I suggest you take a small portion of that $81k and invest in a reading comprehension course.:1036316054:

Could you point out where I said they were "out to get us"? NO, the point I made was that they want to keep operation ratios (profit margins) at maximum no matter what.

Obviously you don't deal with customers and see what reductions in workforce do to customer service. We're putting fewer drivers on the street (dictated by regional management) to the point of not being able to cover all the freight needing picked up. How often do you think you can leave customers hanging before losing said customers?

We have been squeezing and cutting for quite some time, hence the record profits I mentioned earlier. Now they're cutting wages for regular mangement working stiffs. You say it's to make the company stronger and that you're all for it. I'm not convinced. I say take care of your customers and your people. That is what brought you to the dance in the first place.

Oh, and what's your point on the IQ issue? Please educate me :wink1:
 
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