Buyout Q&A, Jan.22nd Update

Discussion in 'FedEx Discussions' started by MrFedEx, Jan 26, 2013.

  1. MrFedEx

    MrFedEx Engorged Member

    There is a new memo out regarding the buyout. Again, it states that you need 5 years of continuous service and those who are eligible will receive an email early in Feb. A numerical cap on some departments, locations, organization codes and job codes is in place. Part-timers are eligible.

    Here's the key statement, which IMO just re-states what we already know, and that is that some groups will be "carved-out", which means no participation in the buyout. Given their previous statements, this seems consistent with no buyouts for couriers. If more employees request buyouts than are available under the applicable cap, priority will be given to those with the longest FedEx continuous service. Every highly placed management talking head I have heard parrots the line that no positions will be bought-out that require backfill hiring, and that seems targeted at couriers. A MEM VP I heard speaking back in September said definitively that NO couriers would be offered buyouts. When the Ground switchover occurs, that may no longer be the case, and could leave the door open for couriers to get an offer to leave. The whole thing is so open that concrete answers are impossible at this point.

    All of this is written in intentionally vague terms. The fact that they don't have a firm date in February makes me think they are still working out the details and have left themselves an out wherever they need one.
     
  2. vantexan

    vantexan Well-Known Member

    I didn't see anything different from the December update. They are making it a point to not say that couriers are definitely not going to be offered a buyout so, as you said, possible but not likely. I only got 37 hrs this week so if Express volume is expected to decline further they're going to be paying a lot of people the guarantee. I won't go voluntarily without a buyout, not giving up unemployment. I'm up against another deadline here too. Found out they tried to shut down this station before I arrived but the lease they siged made it too expensive. Lease is up in 2016, I hit 55 in early 2017.
     
  3. overflowed

    overflowed Well-Known Member

    Shut down and consolidate at a larger STA?
     
  4. vantexan

    vantexan Well-Known Member

    Right, and I sold my pickup after moving here to save money for retirement. Bigger station is only 20 mins away, will probably bum rides off coworkers until retirement. Or transfer to a place where I can use bike. Do you have any idea what kind of discount we get for a new Toyota?
     
  5. overflowed

    overflowed Well-Known Member

    Haven't seen with my own eyes. Have heard 3-6k depending on brand and model.
     
  6. sweetp

    sweetp New Member

    you can check out the car discounts fedex employee can get on lifecare.com
     
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    We have a similar discount program----you may be able to get a better deal yourself rather than using the discount.
     
  8. MrFedEx

    MrFedEx Engorged Member

    Back to the original idea of the thread. I'm hearing there is a big meeting in MEM this next week to discuss the buyout. I read this as them still figuring it out because it is only MD's and above attending.
     
  9. vantexan

    vantexan Well-Known Member

    Maybe in this economic environment they are realizing very few are willing to go voluntarily.
     
  10. MrFedEx

    MrFedEx Engorged Member

    Perhaps. I keep hoping too.
     
  11. Mr. 7

    Mr. 7 The monkey on the left.

    Its 2.5% over invoice. So, a car that invoices for $30,000 you should be able to get for $1,500 over that.
    That's not a great price. If you really grind them, you can get cars for about $500 over invoice. The problem is, you have to find out what the invoice price is. And, go there on the last day of the month ;-)
     
  12. vantexan

    vantexan Well-Known Member

    Wouldn't that be $750 over invoice? Thanks, considering buying before I quit then paying it off with PPP money. Probably will buy a previous model year when they're trying to get rid of them.
     
  13. Mr. 7

    Mr. 7 The monkey on the left.

    Ooops,
    You're right, it is $750.
    I'm gonna stick with delivering envelopes.
     
  14. IsItME

    IsItME New Member

    The big problem is going to be that too many want to take it and the carved out departments are going to be upset. Anyone with 10+ years would be crazy not to take it. The future of FedEx is extremely bright but your future at FedEx is rather dim. By (your) I mean anyone that works here. The stock is really starting to rise based on the optimism of the cost reductions.
     
  15. IsItME

    IsItME New Member

    I'm ready to go so I'm taking on if I can. 4 weeks a year should be enough to get employees who know what's going on the motivation to leave. If you get an offer, make sure you have a transition plan. This money can go a long way if you're smart about it. Staying in this company will be a mistake if you earn a living wage.
     
  16. vantexan

    vantexan Well-Known Member

    The problem is that the older employees who get paid better will probably prefer to hang on until they can get a max pension at 60 or until Social Security starts at 62. Think about it, you are 54, at the top of your pay range, and there's little hope of getting a similar paid job out there. You've got 5 weeks of vacation plus personal days. Why would you leave for total uncertainty? And yet I bet these higher paid folk are the ones FedEx would like to get rid of. A 35 yr old with 8 years with the company costs them a lot less.
     
  17. IsItME

    IsItME New Member

    You're right and I understand. I do think people with long term expectations for a career here should understand that's not going to be the case. Something to ponder, if you're 54 and will receive 104 weeks (hypothetically), that means you'd get the next two years pay without having to work and you should be able to take a nice break and figure out what's next. I think it's something to consider because of the uncertainty of stability. Do you really think that everyone that declines it will still have a job here in 6 years? I think it's a very, very tough call because of the uncertainty you mention and the company's desperation for us to leave.
     
  18. Cactus

    Cactus Just telling it like it is

    Well said. And this clueless company wonders why morale is so low.
     
  19. IsItME

    IsItME New Member

    One more point, if you got a job in 9 months and it was lower paying, you could supplement that with the remaining buyout money or significantly reduce your expenses by paying off debt. What this guy spent the last 30+ years building is going in reverse. It's a reality. It's likely a $140 stock if we leave.
     
  20. vantexan

    vantexan Well-Known Member

    Most likely some will see it as you describe. They would, however, get unemployment if let go, and they may not be let go for several more years. It's a crapshoot, but still I think most older employees will try to hang on as the job market is pretty slim pickings and a lot of people are vying for the better jobs out there. I wouldn't characterize the company as desperate. They are trying to go from profitable to more profitable to impress Wall Street. One thing is for certain though, if they are counting on attrition to reduce courier ranks in this economy I think they are going to end up with too many couriers getting free money from them in guaranteed pay. If we become a strictly, or even primarily, overnight service then there won't be enough work. They can either layoff people and pay unemployment or reduce our ranks with buyouts. And I bet most who take the buyout will be mid-range employees because we truly have no future here. That's not necessarily a bad thing as they can replace retiring older couriers with newhires and with a reduced mid-range force they'd have lower paid employees for many years to come(not bad from their perspective that is).