Yay FEDEX
 

Continuing the steady stream of, may we say it, trickle-down consequences?

FedEx announces wage increases, bonuses amid tax reform | TheHill

What airline will be next? Everyone's watching. Employee bonuses? Pension contributions? Fleet or route expansion? All the cool kids are doing it, don't be left out! :)

https://www.atr.org/new-skywest-airl...ings-employees

http://aviationtribune.com/airlines/...lion-bonuses/\

Http://www.Spiritmanagement.com/employeerelations

Quote:

"To all current employees and their family members: Go Fu@& Yourselves! Hi Five!"

Nothing like giving huge tax cuts to the rich and permanent ones to huge corporations on the backs of future generations for a small one time bonus for the everyday man.

I'm glad FedEx is giving raises to hourly workers, but I don't expect pilots to get a cent. Unlike the other carriers giving bonuses.

The Facebook comments are here.

Facepalm.

As a FDX pilot I will certainly take the bonus but won't lose any sleep over it. I hope our ramp workers get a bonus though. They work hard already and maybe a little quid will motivate them to be just a tad bit better all around. Maybe they will stop eating our catering. Maybe they will stop and pick up a piece of trash around the ramp. Maybe, just maybe a little bit of bonus money will motivate them to be a little more proud of where they work.

It's truly a bummer when the opposite of the nonstop crud you've been fed by MSLSD happens. I'm sure that, just like you, they're doubling down on the incorrect 'the little guy gets screwed' theme.

I for one don't think he's wrong.

As a FDX pilot you won't receive any bonus.


They don't get a bonus either. They usually get merit-based pay rate increases every October. Those will come 6 months earlier, in April. Six months of tiny increases won't amount to much, but it helps FedEx's corporate image.

$1.5 billion in facilities at our Indy hub -- that was already planned anyway.

$1.5 billion voluntary contribution to the pension fund. Sounds like a good reason to dump ours. :rolleyes:






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Glad we did. Our corporate tax rate is not competitive with the rest of the world versus being one of the highest and as we've seen before the "rich" are the ones that drive this economy.

That is because you don't think and are just fed a steady diet from the talking heads of I hate Trump more commonly known as the main stream media.

You know it sucks when thousands of companies have given permanent increases in wages to their employees, given out hundreds of millions in bonuses to their employees and repatriated tens of Billions of dollars back into the U.S.

Of course if this was an Obama achievement it would be on CNN, ABC, MSNBC, NBC played 24/7 and every new company that announced a wage increase or bonus would be celebrated, four page articles would appear in the New York Times, U.S.A. today and Washington Times touting this achievement.

Funny thing is we hardly ever hear from those sources any of this or how the stock market has broken record after record (despite the left's accusation that if Trump won the presidency that it would tank) or how unemployment is at a 10 year low or that black unemployment is at a record low.

So, please tell me how allowing the American citizens and American companies to keep more of their money they earned instead of giving it to a giant cash incinerating machine known as the government is going to screw the "everyday man" who on average is going to take home an increase of $1,560 a year?

Be nice guys.

Trump taking credit for things he had no ability to influence in the short time he's been in office is very Trump-like.

Ya....he probably even would have accepted a nobel peace prize for doing nothing too.

I own a lot of stock. I'm very happy about the corporate tax cuts. And I'm glad to see companies bringing money back to the US, along with making new investments in the US.

The buzz around Davos was that other countries were going to cut their corporate taxes as well due to their concern of losing business to the US.

Governments worldwide have grown to be bloated and inefficient. The best thing that can happen is that governments worldwide have to shrink due to smaller budgets. If this is the impetus of governments shrinking, that's great.

I hope you feel this way when it's time to pay this money back.

Wrong and wrong. Big corps didn't pay anywhere near the 35+ % the people claim the effective tax rate for big companies before the tax cut was less than 20%. The only people that pay 30% is us.

Well, the fix is smaller (less expensive) government.

You are right, they found ways to offshore their money to avoid the higher taxes and that was the problem and that problem is now fixed. Either way at 35% we did have one if the guest corporate tax rates on the world. If you recall delta wanted to set up a company in Holland just for that purpose.

Either way it's very good that we dropped it and we are already seeing the benefits.

"Pay back" what? It's our money they are just taking less of it. If they can't afford it then cut spending.

Just the party of fiscal responsibility being fiscally irresponsible again... nothing to see here. Hey mods, make sure to shut down this thread now that somebody made a comment that conflicts with the typical Fox News BS that’s spewed on a regular basis on this forum.

The fact that he is in office and not some whacked out socialist is exactly the reason that the stock market is where it is. He is cutting regulations that kill business, lower taxes for business. He is creating a very business friendly environment and the stock market is reacting accordingly.

It is already my money why do I have to pay a government back. This is the illogical thinking that is the liberals. For some reason you think it is the government money.

If the government can't balance a budget then it is time for spending cuts not more money.

No the corporate rate was 35 percent. Yes they used a myriad of deduction to get it down but it was still much higher than the average corporate tax rate which sent money fleeing the country. Now Trump has brought it back and this will help fill the coffers of the government and allow business to grow.

I mean didn't Apple and the other tech companies just bring back around $400,000,000,000? That is FOUR HUNDRED BILLION for those who can't count that high that would not have been taxed by another country at a lower rate. But with Trump's tax cuts that has added just from the repatriation of those moneys at least $80,000,000,000 (80 BILLION).

Then again I bet you didn't even know that they were bringing this money back in because once again the MSM will not run this as it is too good for Trump and shows what BS the libs spew when they said all the tax cuts were going to do was enrichen the investors and CEO's.

The truth does slip out every once in a while even on NBC: https://www.cnbc.com/2018/01/05/appl...0-billion.html

So tell me again why lowering the corporate tax rate was bad?

So what you are saying is the dems are the party of fiscal irresponsibility? I guess on that we could agree.

When has any politician in the history of the cosmos shown any sort of restraint when spending other people’s money? I’m a lowly regional pilot and every February when I have to justify my existence to the IRS, my federal tax liability is around 2.5 months pay. It’s only through the use of MANY legal deductions that I’m able to eek back a refund of about half a months pay. Now that most deductions are going to be eliminated and I’ll have to use the new and improved “standard” deduction, I honestly have no clue what to expect when I file. Too bad I can’t buy a golf course and claim that sweet “nature preserve” deduction. I’m just trying to figure out why I’m supposed to be groveling and thanking the orange one.

Corporations don't pay taxes. Simply an expense they pass on to their customers.

Average corporate tax rate in the industrialized world: 22%, US was 35%. Now, its 21%. Much more level playing field for US businesses.

Stand back and watch investments in US companies increase and life continue to get better for the American worker.

So you are disparaging raises for our coworkers because they won't amount to much? How bout you let it play out and let them decide if it amounts to much or not?

Got news for you Tony, FedEx DOES have a good corporate image because they ARE a good corporate citizen, and they provide a living for hundreds of thousands of families around the world.

Obama said he was "surprised" to receive the award. What would Trump say? I guess we'll never know. ;)

William Gladstone in the UK, Warren G Harding in the US.

I think Harry S. was pretty tight. Enough that he was broke on retirement. Unheard of these days. ($22,000. a month rent for Barry.)

Harry lived in the House his mother in law left him. When he left office, he went on vacation, driving his car from Independence (suburb of Kansas City, Mo) to the northeast. Either in Penn or NY a state police officer pulled him over. No traffic violation. He was just creating a crowd on the Highway, people could not believe he was driving his own car on vacation. They wanted to see him. He would wave at them. Real friendly.

After he built the Truman library, just up the street from his house, he would walk up very early in morning (remember he grew up on a farm) and walk home for lunch and a nap. He got correspondence done sitting at his Oval Office desk replica. He had no other office. I think he even wrote checks to pay his bills sitting at that desk. People knew if they called the library early in the morning, he would answer the phone. No use paying someone to be there at 5 or 6 am, when he could answer it himself. He even gave some people tours before the library opened.

That is being pretty tight, and very practical. And very down to earth. He felt like he was just an average person, doing the work of the citizens.

I'm not disparaging anything, just correcting VSTOLG4's misconception and making an observation about the so-called bonuses for FedEx employees. He said he'd "certainly take the bonus" as a FDX pilot. FDX pilots won't receive any bonus. He said he hopes our ramp workers get a bonus. They won't, either.

I'm guessing you've never worked in Domestic Ground Operations (DGO). I have, years ago, and I'm closely related to someone who currently works in DGO, so I think I know a little bit about the topic. The vast majority of DGO jobs are part-time. That's the nature of our business. The work comes in waves separated by lulls, not in steady 8-hour shifts. That means a lot of short days, or short bursts of work separated by long, unproductive and unpaid breaks where the employee can't really leave and go home or go to another job, but he's not paid, either. And while the job comes with pretty good perks -- 401k contributions, tuition reimbursement, health care insurance, and paid vacation, to name a few -- it's still a part-time job, which guarantees only 17.5 hours per week. And while it's a part-time job, FedEx expects the employee to treat it like his ONLY job, or at least his PRIMARY job. If FedEx wants the ramper to come in early or stay late, FedEx expects the ramper to comply.

The schedule and demands of this "primary" part-time job present significant challenges to working at a second job, but 17.5 hours per week of pay won't exactly support a small family. It's a great starter job for a high-school graduate, and many employees use it to work up the ladder in hopes of better pay and full-time status, but many, many, many DGO part-timers leave FedEx for something more stable and rewarding. Schedule and pay are only two of the reasons why we have a chronic under-manning issue at the hubs in Memphis, Indianapolis, and other hubs and sort facilities and local ramps.

FedEx is very careful to advance and protect its image, and I'm glad they are. I'd like to think they'll still have a great corporate image when my wife or I (whichever endures the longer) collects the last retirement check before passing. I don't think I'm being over-cynical, however, to note that the primary motivation for jumping on the "bonus bandwagon" was not to reward employees, but to enhance its corporate image. With all the talk lately about companies giving their employees bonuses, with $1,000 being the most frequent amount mentioned, it's important when a bunch of corporate logos are splashed on the TV screen during discussion of those bonuses that the FedEx logo is prominently displayed among them. I don't even remember which company announced their $1,000 bonus first, but so many have joined the chorus now ... Home Depot, Lowe's, AT&T, ... even Wal*Mart is giving bonuses up to $1,000. Of course, there's fine print, and it turns out that some people will get that much, most will get less, but who has time for fine print, anyway? StarBucks is rewarding employees ... how could FedEx be left out?

Like I said, most DGO employees are Part Time, and that means a 17.5 hours per week guarantee. Every year they expect to receive a small increase in pay. That might amount to roughly a dollar, so a ramper making $12/hr last year might expect to make $13/hr this year. It's not uncommon for him to then learn that the guy who was hired a week ago is also making $13 /hr because that's what it takes to recruit new rampers this year. Those pay raises usually occur in October. The FedEx "corporate tax-break bonus" is the decision to advance this year's pay raise by 6 months -- an early pay raise. If the increase in $1, the same part-time employee will see an extra $17.50 in each week's paycheck, before taxes, for a total increase of $455, which is in the neighborhood of 2 weeks pay.

Nothing to sneeze at, but, like VSTOLG4 intimated, I think they deserve better.

Nothing to sneeze at, but not exactly the numbers one might imagine when they read $3.2 BILLION in the press release headline. Let's take a quick peek at the 3 components of the plan.

Quick, how much is FedEx setting aside for DGO hourly employees, which includes our "rampers"?

Not $3.2 billion. $1.5 billion is designated for capital improvements to Indy and Memphis hubs. The Indy Hub project was announced last year in an announcement that included the need for 125 new full-time and 450 part-time employees. Have you been to Indy the past few months? They're already 700 employees short every night.

Not $1.7 billion, either. Another $1.5 billion will be a voluntary contribution to our pension fund. That money will be borrowed (they sold 10- and 30-year bonds), so it must be assumed that the rising market will more than offset the costs of the borrowing, minus the credits they'll claim for it. (By the way, our pension fund, which includes ALL FedEx employees, not just us greedy pilots, was already highly funded, in fact at 88% when last reported last May.)

That leaves $200 million for actual investment in employees, but that's not the number, either. Only two-thirds of that amount will go to hourly employees, which includes DGO employees, which includes rampers. Wow. $133 million to be divvied up among all the hourly employees. That's barely more than StarBucks announced it would be spending. Let's revise that headline:
Again, ask yourself why we have such a hard time getting a full complement of rampers to work on cold, wet, windy nights.

The other $67 million of bonuses will go to ... let's see, how did they word that ... "performance- based incentive plans for salaried personnel." That's press release lingo for MBO (Management By Objectives) bonuses -- the culture cancer that continues to infect our bureaucracy. That's another thread which has been discussed long ago.






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So your point is all things considered...everyone at fedx would have been better off having none of this happen?

Sure, BobZ, that's precisely what I said. :rolleyes:


If that's what you got out of my post, I doubt there's any way I can help you understand. Too many words in my post for you to handle, right?






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:D well I stayed with it all the way through.

corporations as with most of us operate with a strong self interest motivation. will the fanfare of these announcements reveal the equity of distribution or the methodology we each would prefer?

probably not.

but on balance it seems individual windfall yield or not, on balance everyone from the PT college student to us greedy pilots, to management royalty are better off all things considered?

it would seem the question germane to these events is if or not it all would have happened absent the recent legislation?

Great post, TonyC. I appreciate your well laid out facts and logic.

I dunno. Supposedly the tax legislation led to rising wages. Which led to higher interest rates, which led to fears of inflation, which led to a plummeting stock market. Or at least that's what the analysts said today. So are we all better off now?