Pay Raises are now Official

[MrFedEx]

Look at post #14

Here's the question everyone needs to ask, and that is "What is FedEx going to take away from us in order to "give" us a raise?" There are no free lunches, especially at FedEx. The other shoe has yet to drop. Nothing has really changed in terms of the big picture. It still takes way too long for anyone to top-out at this cheap-ass company. If they were to try and make-up the difference for everything they have taken away, the raise would be about 30%.

We're still headed backwards.

 

[MrFedEx]

If $22.90 is the current top out in Market A (or $21.91 in B) then the top of range IS being moved up by 3%.

I seem to remember top out for A was just under $23 when I left, so I'm thinking that the top of range is being moved up 3%.

Everything I have regarding the pay increases shows the "new pay" to define the quartiles, NOT current January 2012 pay.

I know from reading through it, that there is going to be a lot of questions, and most people will be at a loss to explain why the system is designed the way it is. Again, the rationale isn't fairness, it is holding off a mass union card signing. The "junior" Couriers are being tossed under the bus (along with a sandwich from Fred).

Fred makes a mean crap sandwich, doesn't he? Hopefully, most people won't fall for it. Here's what I see happening, since Fred doesn't like people making full wage anyway.

1. Renewed efforts to eliminate senior employees.

2. Even more newer employees walking out the door, probably joined by some of the people who just missed the better pay window.

Never look a gift horse in the mouth, unless his name is Fred S.

 

[Ricochet1a]

XFILED got up the "official" release of the system and rationale. As I pointed out last night (after correcting myself), top of range is increasing for virtually all job categories while bottom of range is remaining as is.

I was working off a "pre-release" copy that wasn't cleaned up, so that is why I wasn't certain about top of range increasing. I was able to determine from the post-pay raise charts that indeed a 3% increase to top of range is occurring.

It does look like Teamleaders and DG Agents are eligible for the "boost" if they are in the top of their range. However, I only knew of ONE individual that was in these categories that was past half their pay progression when I was in, and that was due to them "downgrading" from another position.

Again, the reasoning given in the memo for the way the pay increases are to be distributed is to "accelerate" those who are past mid range to the top - while obvously leaving those who are not at mid-range behind. This is an outright slap in the face to those who have been doing the work, but are languishing at the same relative compensation levels as they received since the day they have hired. When the gutting of the pension plan along with the increases in the premiums and deductables for the other benefits are taken into consideration - those in the lower half have seen a steady DECLINE in their relative compensation (adjusting for inflation, out of pocket requirements and pension plan value) from the day they were hired.

Again, if you aren't happy with what Fred is handing out to you, you have only one alternative if you cannot leave Express - sign those union cards.

I hope this latest action proves to the lingering KoolAid drinkers out there that Express only has its interest at heart when it comes to compensating its employees, and is only giving the "boost" to those past the half way point in an attempt to ward off union activity among those employees. If it wasn't for the "threat" of unionization, those in the upper half of progression wouldn't be getting that extra 2 or 3 percent boost - Express doesn't give away ANYTHING without a very carefully thought out reason and expects a positive cost-benefit performance for those dollars which they are spending.

You can tell from the memo, they priced out the pay increases and the boost is going to cost them a bit. The reason for accepting that cost is that Express feels that the benefit of warding off unionization activity is worth the expense to them.

This also goes to prove to all those who have been stating that Express cannot possibly find extra money to boost compensation - that there is indeed money for compensation. It is all a matter of Express doing a bit of digging. They are coughing up a little extra to ward off unionization. Just think what they would cough up if there was a certification vote handing over their head. Then think what they would cough up if there was an actual union certified and were looking at a nationwide shutdown of their system.

 

[vantexan]

With almost half a billion in profit last quarter and the new system in place that pushes us to hit a 100% goal or face a decision day, it's not surprising they have more to spend. But as MFE pointed out their actions concerning raises and pensions means we're way behind where we should be anyways. And their past actions point to eventually taking this new plan away too, especially as today's newhires start approaching the mid-range line. I wonder just how many newer employees will stick around if the economy improves? And if top of range gets raised every year then older mid-range employees are still looking at many years before catching top-out. Another way they're paying for this? By keeping pay progression so slow they'll come out ahead as they replace retirees with newhires. And we're top heavy with older couriers.

 

[XFILED]

XFILED got up the "official" release of the system and rationale. As I pointed out last night (after correcting myself), top of range is increasing for virtually all job categories while bottom of range is remaining as is.

I was working off a "pre-release" copy that wasn't cleaned up, so that is why I wasn't certain about top of range increasing. I was able to determine from the post-pay raise charts that indeed a 3% increase to top of range is occurring.

It does look like Teamleaders and DG Agents are eligible for the "boost" if they are in the top of their range. However, I only knew of ONE individual that was in these categories that was past half their pay progression when I was in, and that was due to them "downgrading" from another position.

Again, the reasoning given in the memo for the way the pay increases are to be distributed is to "accelerate" those who are past mid range to the top - while obvously leaving those who are not at mid-range behind. This is an outright slap in the face to those who have been doing the work, but are languishing at the same relative compensation levels as they received since the day they have hired. When the gutting of the pension plan along with the increases in the premiums and deductables for the other benefits are taken into consideration - those in the lower half have seen a steady DECLINE in their relative compensation (adjusting for inflation, out of pocket requirements and pension plan value) from the day they were hired.

Again, if you aren't happy with what Fred is handing out to you, you have only one alternative if you cannot leave Express - sign those union cards.

I hope this latest action proves to the lingering KoolAid drinkers out there that Express only has its interest at heart when it comes to compensating its employees, and is only giving the "boost" to those past the half way point in an attempt to ward off union activity among those employees. If it wasn't for the "threat" of unionization, those in the upper half of progression wouldn't be getting that extra 2 or 3 percent boost - Express doesn't give away ANYTHING without a very carefully thought out reason and expects a positive cost-benefit performance for those dollars which they are spending.

You can tell from the memo, they priced out the pay increases and the boost is going to cost them a bit. The reason for accepting that cost is that Express feels that the benefit of warding off unionization activity is worth the expense to them.

This also goes to prove to all those who have been stating that Express cannot possibly find extra money to boost compensation - that there is indeed money for compensation. It is all a matter of Express doing a bit of digging. They are coughing up a little extra to ward off unionization. Just think what they would cough up if there was a certification vote handing over their head. Then think what they would cough up if there was an actual union certified and were looking at a nationwide shutdown of their system.

Well Said Ricochet1a...Ive been telling the guys at my station for years that just the threat of Unionization would give us better pay and benefits...I tell them if we don't like the Union deal we don't take it....But sadly most of them have been brainwashed by MGMT that Unions are bad and Unions just want their money....I hate to say it but i work with a bunch of Amoebas who cant see the big picture...

It also seems like Fedex was just gonna give 3% across the board to everyone anyway but decided to just shift the money that was gonna go to raise minimum pay to help offset the extra 2% and 3% that some people are gonna get...Also on page 2 of my first post it shows FedEx saying that certain work categories will not get a 3% raise but rather get a 3% avg of 13 weeks pay to compensate for the rest of fiscal 2012..
Fedex isn't giving any extra money away but rather taking it from handlers and new hires...They want to shore up at Top Pay and the people near Top Pay to keep the Union out..

Not that there is a Union threat anyway...Our best chance went out the window with the FAA reauthorization...The first week it came out we had a meeting about it and about Unions...That's how afraid of that Bill they were...Now their laughing all the way to the bank and lighting Cigars with stacks of hundreds...Scumbags

 

[Ricochet1a]

From conversations with Couriers from my former workplace, most of the part-timers are looking to get out ASAP. The only thing that is keeping them is the combination of the health insurance and the $3000/yr tuition benefit. If either of those were to be touched for the part-timers, there would be a mass exodus in short order. I haven't heard of any talk of removing those - Express knows it would be in trouble if it did.

The more and more I talk to people, the move FedEx performed does appear to be an attempt to ward off union organizing. Those that are getting either the 5 or 6% do seem to have the mindset of "at least I got mine" (that is what I'm hearing). Fred has always placed his money to where it has gotten him the best results, and it appears that right now, giving a bit of extra coin to those in the top half of pay progression is what he thinks will get him the best of results.

The amazing thing, is that the scheme is really a slap in the face to everyone that has less than 12 years or so (below half way point in pay progression). Since the top of each pay scale is moving up by 3% - this is a tacit admission that 3% is really a cost of living adjustment. So giving everyone on the bottom half just a cost of living adjustment and not a real increase in compensation (after all the past 3 years) - is a true slap in the face.


For those that hired in after March 2007 (almost 5 years ago), they have steadily lost real compensation compared to the date they hired. Their 2008 raise would've been hindered by not having enough time required to max out the safety score on the old review (first year reviews were typically in the 5 range - which yielded a 3-4% pay raise). 2009 and 2010 were a disaster for employees. 2011 saw about a 2% raise (I was out by this time), and now 3% for those who were hired after 2000 (it is how it works out). A complete disaster for those who due to their low seniority - are stuck with the worst routes and doing the hardest part of each stations' work.

The other thing is that there is no longer any sort of precedent for how pay progression will work in the future. Did anyone know prior to this weekend how the system was going to work (outside the handful in Memphis)? Will this same system be used next year? (Who knows..) There is no predictability for an employee to be able to seriously look at a career and have confidence that they'll be making a certain amount at a certain date in the future.


The real answer is that there is no longer any career prospects for wage employees at Express (or for any employees for that fact). The corporation will hand out what it thinks it can get away with (even if that means no raise), and employees have NO WAY of knowing what sort of increase in compensation to expect - or how much the cost of their benefits will increase and copayments along with the premium increases. The "take aways" are getting to be ritual at Express now.

Again, get the heck out. Most of the people that I knew who were in when I hired have already left - and the last few are either holding out for retirement, or looking desperately to get out. FedEx made its intentions known when it organized Ground in the manner which it did (maximum productivity for minimal compensation). Express is slowly on the track to match that.

I remember when "goal" was supposed to be an average of day's work - some days above goal, some below, but the running average over a period of time was supposed to hit 100%. From what I'm hearing now - every day is supposed to be over 100% (a statistical impossibility). This means that goals aren't true statistical measures of productivity, but rather arbitrary standards to be met everyday - fail to meet your standard and the OLCCs will fly followed by Warning Letters.

There will always be someone willing to come in and work their tail off for $15-17 and hour and jump whenever FedEx management has the desire to see some jumping. I do think that Express is slowing increasing the heat on that proverbial frog in the kettle of water, not so fast as to cause an outbreak of union activity, but just enough to let the older workforce gradually leave, while having a high turnover among the workforce with less than 10 years in.

The trend Express has shown is a slow, deliberate progression of transforming Express into something that looks like their true vision - what Ground is today. Those that were in during the old Federal Express as opposed to the current FedEx know how much of a transformation has occurred in the past 12 years. The trend is going to continue.

 

[Ricochet1a]

In regards to XFILED post #25 regarding handlers...

They come right out and say in their memo that handlers are compensated according to competitive market levels, so there is no need to boost their compensation. They are going to use a bit of manipulation for those in the lower paid job classifications (only found in AGFS) that if they are at top, their top end won't increase, but they'll receive a one time lump sum or some such nonsense.

It is true that Express handlers are compensated in line with industry averages - especially when one considers that they receive health insurance after 90 days (they don't work enough to qualify for anything to go into the pension scam fund). However with the endless push to reduce damage claims to packages, one would think they would throw a few extra dollars to the handlers to help that. But again, the economy is still in the dumper (real unemployment is still in the double digit area, not the fantasy 8-9% figure put out by the Federal government), and there are plenty of bodies that Express can use and burn up (average handler only lasts about 6 months before they quit). Corporate America doesn't like economic slowdowns, but they definately like the over supply of labor and the subsequently low wages they can pay to the labor they do utilize.

 

[XFILED]

Yep no such thing as a career anymore at Fedex...I almost jumped ship a couple years ago right around that time my buddy emailed me about the FAA Reauthorization..and i thought to just wait it out cause it looked promising than when the House passed it I stuck it out only to see it go in the toilet once the Senate got a hold of it...11 years in the toilet with this Company and the grass isn't getting any greener...Gutted Pension,Poor Raises,Higher Health care that gets ****tier by the year,No Jump Seat,Etc Etc...Game Over

 

[fedex435]

Representation card? how and where do I do this? I'm so pissed off right now I can't see straight. I hated the thought of Unions but now I'm ready....I'm done working hard for this company. I knew hard work wouldn't get you anything here but it was a matter of character in my mind, well i'm all out of character. Im gonna do the minimum like a few of the bozo's where I work....This is BULL$HAT!!!

 

[Ricochet1a]

Representation card? how and where do I do this? I'm so pissed off right now I can't see straight. I hated the thought of Unions but now I'm ready....I'm done working hard for this company. I knew hard work wouldn't get you anything here but it was a matter of character in my mind, well i'm all out of character. Im gonna do the minimum like a few of the bozo's where I work....This is BULL$HAT!!!

http://fedxmx.com/sites/fedxmx.com/files/FedEx_RepresentationCard.pdf

 

[Ricochet1a]

Once you've filled it out, mail it to...

International Brotherhood of Teamsters

Attn: Ted Perez

25 Louisiana Avenue, NW

Washington DC, 20001

If you're serious, save and print out as many copies of the PDF as you have people in your station. Have envelopes with each of them with the address and postage already attached. DON'T hand write anything on something like this that management can use to identify you for retaliation, you'll have to be quiet about this. Use adhesive labels which you can run through your printer for the address, then affix the address to each envelope.

If you don't have a printer at home, going to a print shop and having them print out enough self adhesive labels isn't a big deal. Just make sure you have the mailing address correct....

This will cost you a few bucks, but nothing in the world that is worth having, is free and without effort - there is a cost in terms of cash and time that you will have to invest.

COLUMN-The corporations that occupy Congress: Johnston - TrustLaw

It does look like the fedxmx site has been updated again - they did so in December. The above article was linked by them.

Once you've gotten over the anger factor, start to engage in careful, deliberative action to beat Fred and his efforts to undercompensate you and everyone else that works in Express. The odds are against you, but if enough feel like you do, you might just obtain critical mass to get a certification vote. Be forewarned, it will be you and your coworkers as individuals, against the Colossus of FedEx Corporation, which is definately out to smash any attempts at labor organizing. You will have a target placed on you if management knows you are engaged in organizing - it is something that you will have to deal with.

And to restate what has been said in months past, the Teamsters won't step in UNTIL they have enough cards signed (in their opinion) to support a certification vote of a majority in craft. A vote can be held with less than a majority signing cards to petition for a vote, but the Teamsters have made it rather clear (in non-public discussion) that they won't push for a vote until and unless they have enough signed cards that would practically guarantee an affirmative decision as to certification.

In the time between now (grassroots organizing) and the certification of union representation, you are on your own against FedEx Corporation - be damn careful. When I was on my way out of Express, I engaged in open organizing and had I not already had a departure date already set for myself, I would've been terminated for what Express was setting me up for "work practices". They will use any little thing (and even invent stuff) to build documentation on you to set you up for either the three strikes (Three active Warning Letters) or a single event in which they can hand you your termination notice without them fearing a lawsuit in return.

 

[Ghostwriter]

Since I got rehired 13 years ago topped out employees have grossed on 40 hrs a week easily over $100k more than I have. And now they're getting close to a $1.30hr raise while I'll be getting about 53 cents. I really had my hopes up that they'd finally come through with better pay. Should've known better. Now if they do shift P2 over to Ground we're totally screwed.

HATE- to hear that bad news... The carrot will always be held in front of your face, and if you ever do "get" the carrot- you will be amazed to discover that they were holding a magnifying glass over the puny little thing.

ghost.

 

[Getting Fedup]

Good morning. Long time lurker. This new "wage increase" information finally got me to register.

This increase, if you wanna call it that, is a real slap in the face to the folks who have been with the company for more then 5 years but less then 11. After 5 years it should be pretty apparent that this was your career of choice and competitive compensation should be rewarded to those who perform as required. I have been with the company for 7 years but only driving for 6 years. I am in a portion of the country (southeast, peninsula shaped) where the starting pay is rather low. Probably the lowest tier judging by what I have seen here. After 6 years of no accidents and always above average reviews I have yet too get to $16 a hour. Now, based on what i have read here, my big pay increase is gonna be .47 cents. **** that. That's an INSULT! I have received 1 raise I believe in the last 2-3 years. Time to start the job hunt I suppose. The future of the company now resides in the hands of the people who are getting screwed the most. I guess the master plan of becoming the Wal-Mart of the shipping industry is in full swing.

/rant

 

[Pottsburg]

First time posting here. Im in the East and have been with the company for 8 years. Started off as a handler and have been driving for 5+ years. I looked today and did the math. I am making $0.72 more then a driver hired off the street. Absolutely ridiculous! Now a 3% raise! Our senior came over today and acted like the news he was telling us was the answer to all our problems. The break we have been waiting for. They still haven't told us all the details but from the looks of it i can see why. I am done!

 

[MrFedEx]

First time posting here. Im in the East and have been with the company for 8 years. Started off as a handler and have been driving for 5+ years. I looked today and did the math. I am making $0.72 more then a driver hired off the street. Absolutely ridiculous! Now a 3% raise! Our senior came over today and acted like the news he was telling us was the answer to all our problems. The break we have been waiting for. They still haven't told us all the details but from the looks of it i can see why. I am done!

Sounds like the raise is having the exact opposite effect as intended. The Kool-Aid is no longer being consumed. Thanks, Fred!! No, really. I mean it this time, because this fiasco has already done more damage than I ever could have hoped for. Once again, you "know" your people and care so very much about us. LOL...You are one miserable scheming bastard.

 

[Cactus]

All Fred really wants to offer us is a few crumbs off the table while he and his cronies consume the whole meal.

It sure seems that anything ethical is beyond his scope.

You suck Smith!

 

[vantexan]

For all you newhires who think FedEx is great, look at your starting pay. After you factor in inflation you'll be making about the same 10 years from now in terms of purchasing power. I'd say ok if after 10 or 12 years you went directly to top-out. But that'll be a good deal further down the road. Guess what, there are people in your building who not only make much more than you, but will make considerably more than you in 10 years while you are treading water. OK so you won't make as much in your 30's as they did, but if you hang in there you'll eventually catch up to them after they quit. So what if you're 52? 55? 59?

 

[whenIgetthere]

This morning my manager told me I was in the first percentile even after almost 12 years of getting high 6's on all my reviews, so I will get 3%. I got really screwed by relocating a while back. He then had the balls to ask me if I could do a night route for him tonight, so I told I'm busy and will be busy anytime you ask me to work extra! Yo Fred, it isn't just the high seniority people you have to keep from the union, it's the rest of us, too! What %#@*& you are, fred and your ivory tower minions!! And anyone who may want to transfer, watch out, it's fedex's chance to drop your wages back about 5 or 6 years! Unfortunately, I had no choice, my wife took a job in another region, so I took what I could get, but this is the last time fedex will screw me!

 

[vantexan]

This morning my manager told me I was in the first percentile even after almost 12 years of getting high 6's on all my reviews, so I will get 3%. I got really screwed by relocating a while back. He then had the balls to ask me if I could do a night route for him tonight, so I told I'm busy and will be busy anytime you ask me to work extra! Yo Fred, it isn't just the high seniority people you have to keep from the union, it's the rest of us, too! What %#@*& you are, fred and your ivory tower minions!! And anyone who may want to transfer, watch out, it's fedex's chance to drop your wages back about 5 or 6 years! Unfortunately, I had no choice, my wife took a job in another region, so I took what I could get, but this is the last time fedex will screw me!

When you transfer from one payscale to another, if you were at, say 40% of one payscale you'll be at 40% of the payscale you transferred to also. The problem is that since raises are based on percentages, those on higher payscales will get bigger raises and thus top out faster. For example 5% of $20 is $1.00. 5% of $16 is 80 cents. Over time it adds up. Those of us on the lowest payscales, especially the B payscale, are really getting screwed.

 

[Ricochet1a]

For all you newhires who think FedEx is great, look at your starting pay. After you factor in inflation you'll be making about the same 10 years from now in terms of purchasing power. I'd say ok if after 10 or 12 years you went directly to top-out. But that'll be a good deal further down the road. Guess what, there are people in your building who not only make much more than you, but will make considerably more than you in 10 years while you are treading water. OK so you won't make as much in your 30's as they did, but if you hang in there you'll eventually catch up to them after they quit. So what if you're 52? 55? 59?

This has been FedEx unstated policy for its wage and lower salary workforce since at least 2002 - try to keep those hired in after that date barely above the minumums for a new-hire. Look at Ground and the compensation levels there - that is the not too distant future for Express. There is a move within FedEx Corporation to blur the lines between the different opco's for the customers even more than currently exists. However, the opco's will still continue on paper to be separate entities in order that each entity can take advantage of the most profitable labor laws as possible (RLA for Express, IC model for Ground, near minumum wage for Office employees, etc.).

Look around your stations, you'll see a "gap" in employee numbers between about say 350xxx and 600xxx. The reason for this is that these people hired in between 2000 and 2006 - realilzed that they were in a dead end job with no progression in terms of either pay or career advancement, and left. There are still plenty of employees with numbers between 100xxx and about 250xxx (and even a few 5 digit employee #s)- because they managed to make progression fast enough in the 90's to make it worth hanging in.

Now... those very people that hung around but could never reach top out - were served a small piece of pie by Fred, solely to make them think that they'd be better off keeping quiet and not start signing union cards. For everyone else, "Here's your cost of living adjustment, be thankful for the having the honor to work for Express". Thankfully I was in a position to tell FedEx to shove that "honor" in late 2010.

As an earlier poster stated, he's been with the company for a 8 years, driving for most of that, and less than a $1/hr above starting wage. That's not a career - that's wage slavery.

I have been hearing a lot of backlash about this new scheme coming from former coworkers. I think Express fully knew that there would be "discontent", but they also put out a talking points memo to manangement to spin the pay action like it is manna from Heaven. Local management knows it is a piece of crud, but their jobs depend on being a spin artist and passing it off as that chocolate mousse pie I referenced before rather than the badly assembled turd sandwich which it really is. You will know if you manager tries to tell you this is something great - that they have absolutely no respect for you, since they will be lying through their teeth while telling you that a "great deal" has been received by the wage employees. When I was in, thankfully I did have a senior manager that wasn't afraid to call a turd sandwich what it was - I wasn't getting paid what I should've been, but at least I wasn't having my intelligence insulted.

Remember SFA is around the corner. Open up with both barrels on FedEx. Everyone knows the SFA is really intended to measure discontent in workgroups (not as the "communications" tool they tout it as being) so let them know that discontent is at an all time high. After that, if you are - for whatever reason - staying with Express, start grassroots organizing to get a union certified. If you are fine with wage slavery (being too damn afraid to do something to get more because you can't risk losing the job you have), then my only recommendation is to develop a taste for turd sandwich.

I said it last autumn; leave, organize or bend over. Make your choice.