New Market Level Structure?

Discussion in 'FedEx Discussions' started by El Morado Diablo, Sep 25, 2015.

  1. El Morado Diablo

    El Morado Diablo Active Member

    Our manager said the company feels the number of market levels has gotten out of hand. Supposedly they want to reduce the number to 4 market levels. Has anyone else heard this rumor?
  2. Operational needs

    Operational needs Well-Known Member

    Uh oh. Sounds like they will somehow work this into a pay cut for some.
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  3. I Am Jacks Damaged Box

    I Am Jacks Damaged Box Well-Known Member

    Nothing yet. But my station is in such disarray that we will likely not hear anything until such actions are enacted.
  4. El Morado Diablo

    El Morado Diablo Active Member

    The problem with market levels is they don't work as well as we think they should.

    Multiple market levels should allow stations to move up when the cost of living warrants it. For instance, our station has the highest cost of living in our market. It's 10%-21% higher (avg 16%) than all the other stations. At least 3 of the other stations have higher market levels than our station. We've had a turnover problem for years and we can't get anyone to transfer here since most people would have to take a pay cut to live somewhere with a higher cost of living. It would be hard for us to believe that shrinking the number of market levels would be a positive thing unless they raised the floor for the lowest market level by a significant margin or did a realistic evaluation of the cost of living for each station.
  5. vantexan

    vantexan Well-Known Member

    Years ago they had "C" and "D" market levels that they eventually dropped because they were too low paying(imagine that!). Then they figured out, as we all know, that they didn't have to drop lower payscales, just keep raising starting pay while holding down everyone else's pay. The lowest payscale now, the "B", is so far behind everyone else it's pathetic. So just maybe, if that mgr truly knows something, they might do something decent for the lowest paid couriers in the country and drop the lowest two or three payscales. Way too many couriers making less than $20hr after 15+ years while UPS in same areas are making a good living.
  6. whenIgetthere

    whenIgetthere Well-Known Member

    ...or most!
  7. whenIgetthere

    whenIgetthere Well-Known Member

    I went from an H station to a B station. The only thing that costs less is housing, and that difference is closing fast. Gas and most everything else costs the same or more, here. Fifteen years, barely 17/hour, and found out I am only step 3 , so it will be 22 years minimum before I top out. Pathetic.
  8. dezguy

    dezguy Well-Known Member

    B... b... but you have "industry leading" benefits!
  9. Operational needs

    Operational needs Well-Known Member

    A new guy on my belt (3 months) said he's making $17 an hour. Girl next to me said after 10 years, she JUST hit $18 an hour.
  10. MrFedEx

    MrFedEx Engorged Member

    UPS has no market levels. The whole concept of market levels is nothing but a scam to pay you less money. The job is what it is, regardless of where you live. I have a station in my district that lies between 2 higher market stations. The cost of living is identical, but it has taken them 20 years to upgrade this station, which has huge turnover. How much has FedEx saved by screwing employees for this long?

    Bottom line? They can no longer get away with it so they are being forced to change.
  11. dex 84

    dex 84 Active Member

    If it was based on cost of living it would be fine. Doing the same job has nothing to do with it. If where you live a mid sized house is $300,000 more than it is where I live then I'd expect you to make a bit more for doing the same job.

    It has nothing to do with cost of living though. It's how little they can get away with paying people in a certain area based on what other opportunities are available in that area. It made no sense to me until a coworker explained it to me but this is why the pay rate will be $1.50/hr more in one area than the other even though they might have identical cost of living. It's all about what else is out there. If the job market is flush with competitive opportunities at higher pay rates then your market level will be higher. This is why it pays to work in the city.
  12. dezguy

    dezguy Well-Known Member

    Apparently my sarcasm is lost on some people...
  13. SmithBarney

    SmithBarney Well-Known Member

    Yup to simplify things they will reduce market levels to 4. To make it even easier they will use the bottom 4 tiers.
  14. MrFedEx

    MrFedEx Engorged Member

    At UPS, it's based on the Master Agreement. At FedEx, it's based on what they can get away with for as long as they can do it. That station I mentioned in my first post just cleaned house with managers. Called them in, and told them to downgrade or move on. The biggest issue? Massive turnover. In other words, they blamed the local management for a systemic problem. Memphis is just now starting to realize just how screwed-up and non-competitive it's compensation package is. Now that word is out that FedEx is a lousy employer, they'll have even more problems attracting talent.

    As always, anything you get will be accompanied with either higher expectations, or takeaways somewhere else...probably both. The couriers at the "sandwich" station I used as a example have been complaining for about 20 years, and with good reason. Home prices have always been at the same level as the surrounding higher level stations. The cost of living BS didn't pencil out, but they kept the low wage market level. They're all crowing about their 10% plus upcoming raise, but don't realize they'll lose it all with takeaways down the line.

    That's how FedEx works.
  15. MondayLates

    MondayLates Member

    10 years in and I'm 96 cents above starting pay. With new raise I will be 1.35 above starting pay (my understanding is range minimum is only going up 3%). I'm embarrassed to tell people what I make.
  16. SmithBarney

    SmithBarney Well-Known Member

    Don't be embarrassed, let the world know... too many of my customers assume we make what UPS makes, just tell them you make about 1/3rd (in total compensation)
    probably closer to 1/4 of what the guys in brown make. 10years in and I have yet to make 1/2 yearly of what I made my first year at UPS.