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FedEx Freight | Where would you put compensation gains?

silent trucker said:
Let's do some simple math. There are 40,000 employee's. Every one of them wants $100 per month per year of service. So 40,000 x 100 x 12 x 30 = per year in pension payments. That's for 1 year service. Now of course you actually want 30 times that...which is $12 billion. Using the rule of 4% withdrawal, that being that you can withdraw 4% of your assets in a given year of retirement and live on the interest alone...you're asking the company for $300 billion dollars to be deposited in an interest bearing account to fund this.

How are you going to convince the customers to pay for this? Ultimately, the customers pay our wages, benefits and pensions. In my 30+ years here, haven't found one yet who gave an airborne intercourse about my wages, benefits and pension.

Spoiled children. I work with spoiled children.

No wonder amerika is in ruin. No one want's to earn anything anymore....
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I wonder how in the world upsf does it then along with 90/10 insurance and better pay than our highest pay scale. Go back to sleep driver you have drank too much purple koolaid.
 
silent trucker said:
By pouring billions of dollars into the system for many many years. Sadly, you just don't understand the whole 2=2=4 thing.
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Sadly you don't understand how the company is banking millions while providing a sub par benefits package. I think your math is a little off also from the previous post. If they changed it tomorrow it would start then, they wouldn't account for past years of service everyone would start from scratch.
 
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Crazy Trucker said:
Sadly you don't understand how the company is banking millions while providing a sub par benefits package. I think your math is a little off also from the previous post. If they changed it tomorrow it would start then, they wouldn't account for past years of service everyone would start from scratch.
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That's not the lies that were told in CLT...we've got some older pro union guys who have put retirement on hold because they were told that if they voted yes they would get credit for all their years of service towards a pension!!
We knew that was a lie but some of those guys still believe it...and are still waiting!!
 
silent trucker said:
Let's do some simple math. There are 40,000 employee's. Every one of them wants $100 per month per year of service. So 40,000 x 100 x 12 x 30 = per year in pension payments. That's for 1 year service. Now of course you actually want 30 times that...which is $12 billion. Using the rule of 4% withdrawal, that being that you can withdraw 4% of your assets in a given year of retirement and live on the interest alone...you're asking the company for $300 billion dollars to be deposited in an interest bearing account to fund this.

How are you going to convince the customers to pay for this? Ultimately, the customers pay our wages, benefits and pensions. In my 30+ years here, haven't found one yet who gave an airborne intercourse about my wages, benefits and pension.

Spoiled children. I work with spoiled children.

No wonder amerika is in ruin. No one want's to earn anything anymore....
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On one hand, you're presuming that the company would fully fund the program at 100%, on day one, even for guys just starting out.

On the other hand, I'm not so sure that $3000-$3500/mo would be all that great 30-35 years from now.

I'm curious how the defined benefit pensions evolved, over time. Did they offer today's payout amounts 25 years ago?

We would have to run some more accurate numbers to figure a realistic cost basis, as well as some mechanism to factor in inflation.

The $100/mo per year served is probably possible given a starting point, while making it retroactive seems unrealistic/impossible.
 
The Point said:
City $25.98
Top priority should got to retirement in my book. Most specifically 401k. Our current choice of Vanguard has returned poorly for awhile now. Every fund has lost value this year and a good distance into last year too. We can pick from 8 mutual funds at Vanguard but they offer over 60. If FedEx tells us to rely heavily on the 401k over the pension benefit then let us have a fighting chance to grow our money. Also we need the match increased to be more in line with a "world class company" that the FedEx claims we are. FedEx matches 7% for the pilots, we should be worthy of a 100% match to 7% as well.

While we are on this subject why not let us choose from several companies to have a broad range of investment opportunities? What is keeping FedEx from offering several different companies to choose where we can direct our hard earned money? Take a look at Fidelity, TD Ameritrade or T. Rowe Price. Look at the wide range of investment options and positive returns on investments at just these three financial planing companies. Offering multiple choices of where to invest our retirement money would truly show that you care about our future retirement. Not to mention attracting and retaining top notch drivers with an industry leading benefit.
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Great post Point.

Seems to me a move toward a 100% match would be most preferred, then seek a higher max limit on the match. I wonder what that cost would be. It would be slightly variable depending on participation, which would presumably increase.
 
Redracer3136 said:
That's not the lies that were told in CLT...we've got some older pro union guys who have put retirement on hold because they were told that if they voted yes they would get credit for all their years of service towards a pension!!
We knew that was a lie but some of those guys still believe it...and are still waiting!!
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I'm calling bs on that. In all seriousness it's probably a lie you told everyone so when it didn't come true you could blame it on union. We all know about your lie campaign down there.
 
Crazy Trucker said:
I'm calling bs on that. In all seriousness it's probably a lie you told everyone so when it didn't come true you could blame it on union. We all know about your lie campaign down there.
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UPS counted all Overnite years of service,plus one yr,plus current UPSF years of service when plan took affect
 
Crazy Trucker said:
Sadly you don't understand how the company is banking millions while providing a sub par benefits package. I think your math is a little off also from the previous post. If they changed it tomorrow it would start then, they wouldn't account for past years of service everyone would start from scratch.
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Congrats, you shot yourself in the foot. "banking millions". Evidently you either don't understand basic finances, or you refuse to. The amount of money you're asking for is ridiculous. While I will agree the benefits should be improved, I'd say it's a safe bet you never joined the 401 (k). And yes, I think the 401 (k) should be dollar to dollar match.
 
silent trucker said:
Congrats, you shot yourself in the foot. "banking millions". Evidently you either don't understand basic finances, or you refuse to. The amount of money you're asking for is ridiculous. While I will agree the benefits should be improved, I'd say it's a safe bet you never joined the 401 (k). And yes, I think the 401 (k) should be dollar to dollar match.
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Nope I didn't safe bet I don't have 401k seriously have you looked at our portable pension? If I didn't have 401k I would be screwed. They could make us a defined pension if they wanted too. Don't see it happening though with out help from outside influence. Kind of funny these other companies can do it but not fed ex it costs too much.
 
SwampRatt said:
Great post Point.

Seems to me a move toward a 100% match would be most preferred, then seek a higher max limit on the match. I wonder what that cost would be. It would be slightly variable depending on participation, which would presumably increase.
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What's the best LTL carrier 401(k) contribution match? For arguments' sake let's assume it's 100% of the first 6%. Let's also assume that nobody covered under the companies 401(k) plan earns more than $265K a year.

Keeping the math simple let's use the following:

Employee makes $1000/week and contributes $60, the employer matches that $60.

Employer pays FICA tax on $940 which is $58.28 instead of $62.00, a savings of $3.72
Employer pays Medicare tax on $940 which is $13.62 instead of $14.50, a savings of $.88
Employer pays SDI on the $940 which is $8.46 instead of $9.00, a savings of $.54

I am making an assumption that Workers' Comp rates are based on earnings and not hours worked, but I don't know what an employer the size of FedEx has set up for Workers' Comp. So just call it a proportional reduction in the amount paid of 6%.

That means that Fed Ex would spend $54.86 per $1000 in payroll, call it an increase in expenses of about 5.5% of payroll.

Would you rather have a 5.5% pay raise or a 6% contribution to your 401(k) only if you contribute 6% as well? I know what I'd take, given reasonable 401(k) fund choices.
 
EX396 said:
What's the best LTL carrier 401(k) contribution match? For arguments' sake let's assume it's 100% of the first 6%. Let's also assume that nobody covered under the companies 401(k) plan earns more than $265K a year.

Keeping the math simple let's use the following:

Employee makes $1000/week and contributes $60, the employer matches that $60.

Employer pays FICA tax on $940 which is $58.28 instead of $62.00, a savings of $3.72
Employer pays Medicare tax on $940 which is $13.62 instead of $14.50, a savings of $.88
Employer pays SDI on the $940 which is $8.46 instead of $9.00, a savings of $.54

I am making an assumption that Workers' Comp rates are based on earnings and not hours worked, but I don't know what an employer the size of FedEx has set up for Workers' Comp. So just call it a proportional reduction in the amount paid of 6%.

That means that Fed Ex would spend $54.86 per $1000 in payroll, call it an increase in expenses of about 5.5% of payroll.

Would you rather have a 5.5% pay raise or a 6% contribution to your 401(k) only if you contribute 6% as well? I know what I'd take, given reasonable 401(k) fund choices.
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Just so I'm clear, is the essence of your question would you rather have the 6% match in a 401K or a 5.5% raise so you could invest on your own?
 
EX396 said:
What's the best LTL carrier 401(k) contribution match? For arguments' sake let's assume it's 100% of the first 6%. Let's also assume that nobody covered under the companies 401(k) plan earns more than $265K a year.

Keeping the math simple let's use the following:

Employee makes $1000/week and contributes $60, the employer matches that $60.

Employer pays FICA tax on $940 which is $58.28 instead of $62.00, a savings of $3.72
Employer pays Medicare tax on $940 which is $13.62 instead of $14.50, a savings of $.88
Employer pays SDI on the $940 which is $8.46 instead of $9.00, a savings of $.54

I am making an assumption that Workers' Comp rates are based on earnings and not hours worked, but I don't know what an employer the size of FedEx has set up for Workers' Comp. So just call it a proportional reduction in the amount paid of 6%.

That means that Fed Ex would spend $54.86 per $1000 in payroll, call it an increase in expenses of about 5.5% of payroll.

Would you rather have a 5.5% pay raise or a 6% contribution to your 401(k) only if you contribute 6% as well? I know what I'd take, given reasonable 401(k) fund choices.
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Nice breakdown of the cost/benefit equation. Much appreciated.

One flaw: We currently get a 50% match , so the effect (increased cost to Co.) would be half of your given example.

Still, a 3% gain for me that costs the company only 2.75% is the kind of math that I like, a lot.

We have to remember, as you mentioned, these percentages of increase apply only to the wages portion of the compensation package.
 
I will take the 100% match on the 6% but on the condition we can invest in any Vanguard option including IRA. Full access to all mutual funds, ETF's, stocks, etc. to allow us the best options to grow our money. Preferably allow us to make a one time choice to leave Vanguard for TD Ameritrade, Fidelity or another popular choice. I find it hard to believe Vanguard has us throttled down to the 8 mutual plans and think it has more to do with FedEx.
 
I do like the option of more choices. One would think that there would be no cost in having more options.

I lean toward maximum wage, perhaps due to bottom GPD status, and a correction in the vacation calculation. I do think areas where the gain is higher than the cost (401k) should be next.

Also the addition of a ROTH IRA option would be great and cost the Co almost nothing.
 
The Point said:
I will take the 100% match on the 6% but on the condition we can invest in any Vanguard option including IRA. Full access to all mutual funds, ETF's, stocks, etc. to allow us the best options to grow our money. Preferably allow us to make a one time choice to leave Vanguard for TD Ameritrade, Fidelity or another popular choice. I find it hard to believe Vanguard has us throttled down to the 8 mutual plans and think it has more to do with FedEx.
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That's why I like the IRA option vs the 401K, the choices are greater.
 
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