FedEx Freight | Our Deeply FLawed Pay Scales (GPD)

While your at it swamp name some of those other companies that posted a 68 million dollar profit in what typically is there worst quarter.

Not too many... Especially in my market. May possibly be 2, but they would both be in manufacturing. Regardless, that type of research does NOT fall in line with my Pay Scale (GPD). Sorry :idunno:
 
$68M net profit divided by the number of shareholders amounts to pennies on the dollar...not that much to brag about really.

What are you talking about profit doubled plus some from the previous quarter from 33 million. Last time I checked the execs got one big bonus not every quarter.
 
No, I wasn't thinking that at all....was thinking more along the lines of EX396's response....Local competitive wages probably played a bigger part in their decisions than just local trucking wages.
Also, as I responded to CT on another thread, if the turnover rate at your location is low and the ability to hire qualified drivers is high, that's probably another sign that your wages are more in line with where they should be for your area...right or wrong is debatable although neither are my opinion.....As I've stated before, I'd have no problem with only two pay scales...one for NYC, Boston, Chi, SF, etc...(centers with extremely high COL), and one for everyone else.

I gotcha. If that is the case, and they use overall per capita wages, rather than (at least vaguely) sector specific numbers... Then the our system really is flawed. Both you and our Managing Director speculated similar thoughts. I could check and see if that would explain the error, but again, that research would require a higher than current pay scale. In truth, too much going on right now to research how/why they've got it wrong.

Surely a freight company would use freight company (even trucking in general) stats to base their decisions on, rather than landscapers, pizza delivery, and waitstaff data. Especially a heavily numbers centric organization, such as FedEx.

Pay scales? Today, I'd be happy with 4.:stirthepot: Two might be too few, but three just might be ideal. :cool: I would certainly be happy with 1, I'd move up 4 spots. Only one way to get that. Even then 2 would be a better balance
 
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I spoke with HR recently, they stated that 2 specific companies provided the data separately and it was compared/pooled for the decision from FedEx.
 
It would be interesting if we could look at each location, with a known pay scale (GPD) and place a Mean average number along side.

Don't be shy... Takes a minute or less. Click here: http://www.bls.gov/oes/current/oessrcma.htm Just know that some locations will be right in line with where they should be. Again, the number from BLS has no stand alone value, only comparative value. Mine is 19.91 and a pay rate of $23.68. :wee:

Also nice, would be the official list of the 56 centers who did get the proper adjustment.

Going quiet for couple days, more pressing matters.... Yall have fun...
 
I would still encourage (challenge?) anyone who thinks there location was overlooked (unjustly) for an adjustment, to post up some numbers and locations. Make the case! I think I'm made the case for my area pretty clear, and posted proof. Crazy Trucker did, as well.

Again, Comparitive wage data is here: http://www.bls.gov/oes/current/oessrcma.htm

Cost of living calculator is here: http://money.cnn.com/calculator/pf/cost-of-living/
What's your idea of competitive? For me, any carriers that are within a $1 and hour are competitive. You have give and take with each carrier. I've worked for several non-union companies over the years that pay zero OT over 40 hours, have higher healthcare and out of pocket, etc.... I'm in a lower pay scale location and we didn't get the bump but I don't understand the uproar by everyone. I really don't.
 
KINDA FUNNY THERE WERE CENTERS ALREADY MAKING MORE THAN OTHERS NOW THAT THEY MAKE AN ANNOUNCEMENT ABOUT ADJUSTING THE PAY IN THERE COMPETITIVE MARKETS IT'S A BIG DEAL ALL OF A SUDDEN
 
What's your idea of competitive? For me, any carriers that are within a $1 and hour are competitive. You have give and take with each carrier. I've worked for several non-union companies over the years that pay zero OT over 40 hours, have higher healthcare and out of pocket, etc.... I'm in a lower pay scale location and we didn't get the bump but I don't understand the uproar by everyone. I really don't.

Well that's great but in my area we are not even within a dollar of the other carriers so i would say were not competitive.
 
Southeastern, AAA Cooper, etc...pay more an hour but no OT. I worked at AAA Cooper for years and they worked every driver 55 plus hours a week so yeah I made more money but had worse benefits, and definitely a worse retirement. Top wage may be higher but without OT, what did I really gain? I average 45 to 47 hours a week and make basically the same I did at AAA Cooper for working 55 hrs a week and my benefits are cheaper. I have friends at Southeastern who pay $300 a month for healthcare for what I get for $80 a month. We can haggle all day long but a dollar or dollar and a half aren't the only things to consider.
 
Southeastern, AAA Cooper, etc...pay more an hour but no OT. I worked at AAA Cooper for years and they worked every driver 55 plus hours a week so yeah I made more money but had worse benefits, and definitely a worse retirement. Top wage may be higher but without OT, what did I really gain? I average 45 to 47 hours a week and make basically the same I did at AAA Cooper for working 55 hrs a week and my benefits are cheaper. I have friends at Southeastern who pay $300 a month for healthcare for what I get for $80 a month. We can haggle all day long but a dollar or dollar and a half aren't the only things to consider.

Well thats great but what about the guys at bottom pay scale 23.68 who are on 10 hour bids they get little to no ot. You fail to mention our declining benefit package even though Fed Ex is making more money than ever. We should be towards the top with our benefits package not close to the bottom after all we are still the 1 ltl.
 
What's your idea of competitive? For me, any carriers that are within a $1 and hour are competitive. You have give and take with each carrier. I've worked for several non-union companies over the years that pay zero OT over 40 hours, have higher healthcare and out of pocket, etc.... I'm in a lower pay scale location and we didn't get the bump but I don't understand the uproar by everyone. I really don't.

That is certainly within your rights to be perfectly happy to perform at a higher level than your competition, all the while watching YOUR return plummet over time. Do you recall working for the MOST respected non-union LTL? Most respected in most every measurable aspect, including wages/benefits?

If you don't understand the "uproar", then you wouldn't understand the basics of capitalism. It's one thing to offer higher value (service) for equal cost, or equal service for "slightly" lower cost. It is another thing entirely do be expected to provide the premium service (labor), for a deflated/below market price. And considering the inequity WITHIN THE COMPANY, one should not be surprised by the uproar. The price paid for our service (labor/time), should be fair, competitive, and relative to the specific market.
 
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Well thats great but what about the guys at bottom pay scale 23.68 who are on 10 hour bids they get little to no ot. You fail to mention our declining benefit package even though Fed Ex is making more money than ever. We should be towards the top with our benefits package not close to the bottom after all we are still the 1 ltl.

Also, one should NOT make employment and and wage decisions based on any expectation of overtime. The Corp drive is to minimize overtime, when possible and cost effective, as should be expected.

In my opinion overtime is nothing more than a premium paid for cutting deeply into our personal time.
 
KINDA FUNNY THERE WERE CENTERS ALREADY MAKING MORE THAN OTHERS NOW THAT THEY MAKE AN ANNOUNCEMENT ABOUT ADJUSTING THE PAY IN THERE COMPETITIVE MARKETS IT'S A BIG DEAL ALL OF A SUDDEN

Do you really want to know WHAT THE BIG DEAL IS? The fact that we were told that IN DEPTH analysis had been done, and decisions had been made, based on said analysis. Either they used FAULTY data, or the data had little to do with the decisions made. Location were passed over for reasons not supported by accurate data. As to why, we can only speculate. So, speculate we do...
 
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I spoke with HR recently, they stated that 2 specific companies provided the data separately and it was compared/pooled for the decision from FedEx.

Historically FedEx Freight has used the firm Economic Research Institute (ERI). They in turn are said to use "the" 5 digit zip code. If true, and only single zip is used, that would be flaw #1, followed by the nature of the data (general or specific?) requested.

Not sure about this 2nd source you mention. Or the method used by them. It would be informative to know.
 
Also, one should NOT make employment and and wage decisions based on any expectation of overtime. The Corp drive is to minimize overtime, when possible and cost effective, as should be expected.

In my opinion overtime is nothing more than a premium paid for cutting deeply into our personal time.

True we haven't got alot of ot since this time last year. Now we have over hired and don't have enough work for everyone so we leave out with 5-9 stops a day. This time last year we had 10-13 stops. Your lucky to get your 40 so these guys pounding their chest about ot after 8 or 10 is comical to me. I guess it makes them feel good.
 
This situation will be a no win for any company, let alone FedEx.
Drivers that get the classification change are happy. I am one of them. Going to terminals where drivers are making more for the same job and living in an area comparable to you is frustrating. Drivers who were at the higher pay rate are mad they didn't get bumped up. They feel they should always stay a step above everyone else. And drivers who didn't get a bump in class feel betrayed. But if you put the whole company on the same pay rate across the country (the only fair way to pay drivers) then people who live in more expensive places to live will complain they make the same as someone who lives in a less expensive area.

So how do you fix it?
My previous employer never wanted to play that game and so when that question came up their reply was, we will never be able to please everyone or even convince them that what they get is fair. We suggest you move to where you are comfortable with your pay and the cost of living. Pretty much settles it.
 
That is certainly within your rights to be perfectly happy to perform at a higher level than your competition, all the while watching YOUR return plummet over time. Do you recall working for the MOST respected non-union LTL? Most respected in most every measurable aspect, including wages/benefits?

If you don't understand the "uproar", then you wouldn't understand the basics of capitalism. It's one thing to offer higher value (service) for equal cost, or equal service for "slightly" lower cost. It is another thing entirely do be expected to provide the premium service (labor), for a deflated/below market price. And considering the inequity WITHIN THE COMPANY, one should not be surprised by the uproar. The price paid for our service (labor/time), should be fair, competitive, and relative to the specific market.
I perform how I perform because it's how I was raised and I'm pretty certain I understand capitalism. I don't however lower my work ethic or standards simply because my pay rate is $1.00 an hour lower than other non union competitors. Again, my seniority allows me to average 45 hours a week. Even our lower senior drivers average 45 hours a week. A dollar an hour less doesn't necessarily equate to a lower weekly gross or take home either.

So in your opinion if the wages or raises aren't up to your liking, you will lower your output to adjust accordingly? If you are making 90% of what you think you should be making, then you'll only come in and give 90% effort? It's that type of attitude in my opinion that erodes attitudes in general. I'd love to have received the bump in pay but I'm not going to lose one minute of sleep over it nor do I choose to come to work with a different attitude.

Lastly in terms of inequity, when I worked at AAA Cooper, very few difference in pay scales existed. In my opinion, that is inequity when we have drivers working in Southern Cali, Boston, NY, making only $0.50 more an hour when the average median home price is $350k versus $150k where I live.
 
Historically FedEx Freight has used the firm Economic Research Institute (ERI). They in turn are said to use "the" 5 digit zip code. If true, and only single zip is used, that would be flaw #1, followed by the nature of the data (general or specific?) requested.

Not sure about this 2nd source you mention. Or the method used by them. It would be informative to know.
Yes ERI was the one source mentioned but the other name escaped the HR guy, go figure. Again we can only get half the info asked for and wait to see if an answer ever comes later to our question. I understand they can not know everything but the current events at hand should have additional facts to potential questions.
 
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