FDX - Which is cheaper, Low MBPG or Furlough?
What is the companies intent? I think it is to save money and do it in the easiest way possible.
Low MBPG accomplishes that goal. Get most of the savings of a furlough without overhead costs and avoidance of some labor/legal problems
Question - Do the lines have to snap back to 68/85 after a furlough? Sounds really expensive if that is the case.
What they have to do to get there from here -
1) Excess bid and retraining (taking guys off the line costs productivity)
2) Temporarily overman the seats to be furloughed from
3) Probably pay buyup if after the furlough if things don't go exactly right.
3) Pay money to those being furloughed
When the least bit of uptick in the economy occurs -
1) Recall/put folks back into training (i.e. pay them for no revenue gained)
2) Hold vacancy bids and watch musical chairs start again for those not furloughed
I think the company wants folks to stay where they are and suck up a pay cut. Haven't done the calculations but the money saved on the reserve side may be tremendous.
Last edited by Gunter; 01-09-2009 at 08:58 AM.