Anyone see official Buyout letter today ?

Discussion in 'FedEx Discussions' started by **Fred, Aug 13, 2012.

  1. **Fred

    **Fred New Member

    I saw one this morning .
     
  2. vantexan

    vantexan Well-Known Member

    And?
     
  3. vantexan

    vantexan Well-Known Member

    Just went to Google News and read several articles. Said company hasn't determined exactly yet who'll be eligible and that these are voluntary. One article said buyout won't be offered to anyone who handles pkgs or supervises them. Looks to be targeting support staff. Also actual buyout won't happen until next May. Apparently wants them gone before qualifying for a year's payment in PPP.
     
  4. Rhoderunner

    Rhoderunner Active Member

     
  5. newgirl

    newgirl Member

    The news releases differ on some stuff. More to come in October. What did Ex expect out of releasing this now? A bump in the stock? Put the couriers on more eggshells?

    But they all seem to agree that it's the Express side that's taking the hit.
     
  6. vantexan

    vantexan Well-Known Member

    I doubt that many will take a buyout in this economy unless it's extremely generous. This being FedEx pretty unlikely.
     
  7. Ricochet1a

    Ricochet1a New Member

    This is just public confirmation of the "scoop" that came out a couple of months ago.

    NO BUYOUTS for operational employees - ESPECIALLY wage employees (good ol' attrition will happen there...). The buyout will be TARGETED at salaried support staff, primarily in Memphis. There won't be any sort of "formula" (years of service plus age), but rather buyouts will be offered to targeted positions whose job function is seen as being unnecessary or un-cost effective.

    They'll make a further announcement in October, but this announcement is what I hinted at about a week ago (Memphis is "buzzing").

    What wasn't stated (but is obvious) is that employees who are in targeted positions who DON'T take the buyout, will be forced to find another position in Express in a non-targeted position (position that will not be eliminated), or else get the ax. This is going to be a repeat of the 2004 reduction where people who are occupying positions that are targeted for elimination will need to either get out (take the buyout) or find an open position elsewhere in Express (most likely in an operational level position) - or get laid off at some unspecified point in the future.

    And yes, Express has laid off salaried employees before, the "no lay off philosophy only applies to wage employees.
     
  8. 59 Dano

    59 Dano Well-Known Member

    That's consistent with what I've heard over the past few weeks. There's a surprising amount of overlap in support staff roles and the rumor is that as many as 3500 will be offered buyouts before all is said and done.
     
  9. newgirl

    newgirl Member

    Highly unlikely to be generous. The one article says that those getting buyouts don't handle packages and don't supervise people that handle packages. That would rule out quite a few of those 115,000 to 158,000 people they said work for Express.

    But who do they want gone? They must have an idea of what it would take to get those people to take the buyout. It may not be generous, but it just may be enough to get their butts out the door.

    If the OP really has seen an official letter, I would like to know the details. I am tired of the rampant speculation and would like to get on with it already.
     
  10. newgirl

    newgirl Member

    So let me pick your brain here R1A. Why the announcement today? Why not wait until October? And why the press, and not internally first? So far I have seen generic business people comment, not the analysts that deal directly with our stock. If the analysts come out and say it's not enough it could hurt the stock. Are they testing the waters?
     
  11. **Fred

    **Fred New Member

    Sorry , while I start to read the letter from David Bronczek at the check out room the CSA took it out and walk away to copy for their own . I can catch just a little bit detail about MD or who work in the office position will not eligible for buyout . I'll try to get it scan and post it here ASAP .
     
  12. Ricochet1a

    Ricochet1a New Member

    Everyone in Memphis knew this was coming, so FedEx Corp management knew that had to make some announcement, just to help reduce some of the anxiety that has been building over the past few months. Anxious people don't perform well, they are too worried about losing THEIR job. This announcement helped to reduce the level of anxiety and gets people back to thinking about their work rather than thinking about whether they'll get axed in October (this is what the fear was, impending layoffs in October).

    There has been an "internal" announcement, but don't expect to see anything at operational level - the announcement is focused SOLELY at support staff, primarily in Memphis.

    The effect on FedEx's bottom line (in particular Express'), will only be about 2% - nothing to "sneeze at" - especially when Express only managed a 4% profit margin (the 2% will go directly to Express' profit margin once the employees are gone).

    The stock analyst haven't had time to digest the future impact on FedEx stock price - so they won't comment till they get something more detailed to sink their teeth into. All that the "market" knows now, is that Express will shed about 2% of its employees (NOT operational employees or department heads) - so this is viewed as merely "trimming the fat" as occurs in any corporation from time to time.

    What the market has completely missed (since they don't know the particulars), is that Express intends to gradually reduce the hours of its wage employees as volume is shifted over to Ground (initially by reducing service offerings by Express - having the customers do the "shifting", then finally by actually shifting of delivery of deferred volume over to Ground).

    The July "From the Chairman", actually put down the blueprint of what FedEx is going to do (I commented on this a week ago - hoping to get people to think about it). What you are seeing, is the gradual implementation of that master plan of FedEx's. Everyone has been warned this is coming... it is why I post.
     
  13. **Fred

    **Fred New Member

    I think manager will talk about it in the group meeting soon .
     
  14. MrFedEx

    MrFedEx Engorged Member

    What R1a said...support staff and some unspecified salaried positions. No courier buyout.
     
  15. vantexan

    vantexan Well-Known Member

    Amen!
     
  16. 59 Dano

    59 Dano Well-Known Member

    They were saying in May that what we are hearing about now is what would happen. It's not exactly a surprise.
     
  17. packageguy

    packageguy Well-Known Member

    I guess they want rifffff raffff out, I think they should start with frrrreeeddd sssmmiittthhh. lol
     
  18. MrFedEx

    MrFedEx Engorged Member

    He needs to lead by example. His caviar budget exceeds that of most large stations. He is a drag on profitability, and I bet we could get a contract Chairman from China who would cost 40% less. There's an excellent guy from Beijing named**** Yu Fred.
     
    Last edited: Aug 13, 2012
  19. Mr Fedex

    Mr Fedex Banned

    Can we tone it down with the racism please?
     
  20. MrFedEx

    MrFedEx Engorged Member

    Perhaps you need to get an understanding of racism. My track record speaks for me. Try something else.