Raise options

LTFedExer

Well-Known Member
I figured I'd start this not to clog up the other thread.

We've seen Ricochet's post and the responses about the new raises. Since everyone seems to have the answers, I would like to hear is what would YOU consider a raise structure that is fair to everyone?
 

DOWNTRODDEN IN TEXAS

Well-Known Member
I'd be happy with the 5-6% if they would bring back the pension plan. Icing on the cake would be to lower the healthcare to what it used to be.

$30 an hour would rock, but the above is all I need.
 

Mr. 7

The monkey on the left.
There needs to be some sort of justification for any raise. I.E. review system. But, the review system can't slam you just b/c you called in sick or, were late a few times, or never got in an accident your first 3 yrs. but, got dinged for that anyway.

All that said, the lower wage dudes need some serious catching up. The topped out dudes are un-touchable. It's like a class war or, as I told my HR dude, it's discrimination due to years of service. We're all doing the exact same job and eventually, we should all make the same (topped out) pay. As we all know, there's been no such thing as being able to get topped out if you were hired in the last ~10 yrs.
 

whenIgetthere

Well-Known Member
Given that this would all we'd get, I would be happy if everyone got the 5 or 6%. At that rate, it's still a larger bump for the higher seniority people, and the lower seniority would at least get something. At least offset the increase in health care. That already has me screwed because express scrifts has already told us they will not pay anything towards my wifes medication. They want us to use a cheaper option, but as there is no other option (being the ONLY drug for her disease). Hey fred, I hope you burn in hell, and I'll be there to light the freakin' match!!

But as MFE has stated in other posts, this shows us all that fedex doesn't give a damn about us, and they sure don't want anyone hanging around for a career.
 

MrFedEx

Engorged Member
Fred has the Ember Room reserved for him when he heads down below some day. Idi Amin is next door, and Kim Jong Il is just down the hall. Hitler has the basement.
 

vantexan

Well-Known Member
I'd be happy with the 5-6% if they would bring back the pension plan. Icing on the cake would be to lower the healthcare to what it used to be.

$30 an hour would rock, but the above is all I need.

As much as I could use the money I'd settle for 3% a year in exchange for a traditional pension.
 

LTFedExer

Well-Known Member
Not a single raise plan. Just what you'd be happy with.



And van..... My fiancee makes 10K more than me with no pension plan to look forward to. I'll take extra cash in my pocket now over a pension later anyday.
 

vantexan

Well-Known Member
Not a single raise plan. Just what you'd be happy with.


And van..... My fiancee makes 10K more than me with no pension plan to look forward to. I'll take extra cash in my pocket now over a pension later anyday.

So, having a sugar mama is your plan? One of these days the accumulated aches and pains are going to tell you it's time to retire. But you can't because you won't have enough money. Then come talk to me about the value of a traditional pension. I'd gladly take extra cash today too, but not over a solid pension. And it appears we'll have neither at your favorite company.
 

Ricochet1a

Well-Known Member
Since the topic of what one believes to be a fair and equitable compensation package should be, I'll throw up what I think for the record.

#1 The market levels under a contract would be dumped. From what I see of the existing Market Level scheme, I think Market Level friend ($16.66-$25.25, Courier craft) would be a starting point. Express would be allowed to offer bonus over and above the rate specified in the contract in locations where they believe the increased compensation would assist in maintaining a reasonably low turnover rate of employees.

#2 Topout would be based on continuous service (with some modifications), with Full Time employees topping out in 72 months (6 years), Part Time employees topping out in 108 months (9 Years). Full time employees should top out faster, since they work more hours and therefore build skills faster. Part time employees transitioning to Full time would have their time credited at the rate of 3 months of part-time service equaling 2 months of Full-time service for the purposes of determining pay.

#3 Pay increases would be done at regular 6 month intervals.


#4 The chart for the Courier craft would look something like this


Months Service....Full Time.......... Part-Time

0 .......................$16.66........ ....$16.66

6....................... $17.38.............$17.14

12..................... $18.09........ ....$17.61

18..................... $18.81........ ...$18.09

24..................... $19.52........ ...$18.57

30..................... $20.24........... $19.05

36..................... $20.96........ ...$19.52

42..................... $21.67........... $20.00

48..................... $22.39........... $20.48

54..................... $23.10........... $20.96

60.................... $23.82............ $21.43

66.................... $24.53............ $21.91

72.................... $25.25 (Topout) $22.39

78.................... Topout............ $22.86

84 ...........................................$23.34

90......................................... .$23.82

96......................................... $24.30

102........................................ $24.77

108....................................... $25.25 (Topout)


#5 Transfers would still be allowed, but the transferring employee would have their pay rate based off continuous service MINUS 24 months (they'd go back to a rate 4 "levels" lower than they currently hold). This is to reflect the loss of productivity compared to when they were at their previous location. The absolute minumum pay would be for zero months of service.

#6 A fixed ratio of full time to part time employees would be established as part of the contract. Off the top of my head, no more than 1 part-time position in a covered craft would be permitted for every 2 full-time positions. This would be applied on a national level (some stations that had near all full-time employees could be used to justify a higher ratio of part-timers at other locations) - as long as the national ratio is no more than 1 part-timer for every 2 full-timer.

This is done to prevent Express from converting full-time positions into part-time positions and eliminating career jobs.

#7 Part time employees would be compensated at 1.5x pay for any hours worked over 6 hours in a day, 2x pay for any hours worked over 9. Full time employees would be at the current model of 1.5x pay for hours over 8 in a day, 2x over 12 in a day (assuming 5 day/week shift). This is done to protect the part-time employees from being worked full time hours (unless Express wants to pay).


#8 Pension would be determined by a contribution by Express of 13% of an employee's gross pay, up to a maximum of 45 hours of pay (base rate). The base hourly rate would be multiplied by number of hours worked in a week (maximum of 45 used in this calculation), then multiplied by 13%. This sum would be deposited with a third party pension plan (monies not held by FedEx), invested in a manner the employee wishes (according to investment options offered by the third party plan).

#9 Pay rates would be determined based off existing continuous service (a full timer with 60 months of service would be paid at the $23.82 rate specified above), NOT starting with zero months from the moment the rate schedule is agreed to.

I could go on to health insurance and work rules - but I think the above gets my point across. I believe that the above is fair, equitable and obtainable in a contract should a union be certified. Those currently in market levels H, J and L would seem to be "left out", but FedEx would be permitted to pay a bonus, incentive (whatever they want to call it) to locations where they feel they need to offer the additional compensation to keep a stable workforce.
 

LTFedExer

Well-Known Member
So, having a sugar mama is your plan? One of these days the accumulated aches and pains are going to tell you it's time to retire. But you can't because you won't have enough money. Then come talk to me about the value of a traditional pension. I'd gladly take extra cash today too, but not over a solid pension. And it appears we'll have neither at your favorite company.
Um, no sugar momma in my plans. We each have our own accounts plus we have a joint account, from which all the house bills, food, kids clothes, etc are paid from. We each put the exact same amount into the joint account, leaving her with more money to put into her own savings. Anything above and beyond household bills (gas for car, cigarettes, etc) comes out of our individual account. She does have other benefits we (FedEx) don't. The main thing being she pays ZERO for her medical. But, she is the only one on her plan. If she adds 1, or both of the kids or me, it jumps up to amounts comparable to what we pay for the family.
Since the topic of what one believes to be a fair and equitable compensation package should be, I'll throw up what I think for the record.

#1 The market levels under a contract would be dumped. From what I see of the existing Market Level scheme, I think Market Level friend ($16.66-$25.25, Courier craft) would be a starting point. Express would be allowed to offer bonus over and above the rate specified in the contract in locations where they believe the increased compensation would assist in maintaining a reasonably low turnover rate of employees.
I don't agree with this. The different payscales are fine, they just to be more realistic in the differences. I moved from a major market to the South, I took a $3.00/hour pay cut. But, there's no doubt I lived a TON better even with the pay adjustment.

#2 Topout would be based on continuous service (with some modifications), with Full Time employees topping out in 72 months (6 years), Part Time employees topping out in 108 months (9 Years). Full time employees should top out faster, since they work more hours and therefore build skills faster. Part time employees transitioning to Full time would have their time credited at the rate of 3 months of part-time service equaling 2 months of Full-time service for the purposes of determining pay.
How would you handle the couriers already past those marks and people making the change from FT to PT or vice versa?

#3 Pay increases would be done at regular 6 month intervals.
We had this already. I believe the last year we had 2 raises/year was 2001-2002.

#5 Transfers would still be allowed, but the transferring employee would have their pay rate based off continuous service MINUS 24 months (they'd go back to a rate 4 "levels" lower than they currently hold). This is to reflect the loss of productivity compared to when they were at their previous location. The absolute minumum pay would be for zero months of service.
I like this idea, it's interesting.

#7 Part time employees would be compensated at 1.5x pay for any hours worked over 6 hours in a day, 2x pay for any hours worked over 9. Full time employees would be at the current model of 1.5x pay for hours over 8 in a day, 2x over 12 in a day (assuming 5 day/week shift). This is done to protect the part-time employees from being worked full time hours (unless Express wants to pay).
I like this. But, you know this would NEVER happen. Doesn't happen anywhere else, that I know of.
I like your points. The problem is the payscale, raises, etc is so screwed up, there's no way to fix it fairly.
 

MrFedEx

Engorged Member
Here's the reality. FedEx is never going to have an equitable compensation plan. The business model is to create the defacto 2-tier wage scale I have mentoned. As senior employees retire or get forced out (preferred option), Fred's labor costs go down. The whole market level tier/multiple pay scale scam is designed to be confusing and unfair. I always love it when my manager "justifies" the inequity by saying that "career employees deserve to make more money". Jeesuz, at what point are you a "career employee"? It's absolutely ridiculous, and planned, every step of the way.
 

P1 Lates

Active Member
You know when I was interviewed for this courier position they ( the recrutier) said I would top out in 2 years. Well, I beginning my fifthteenth year some March and I still have'nt topped out. The manager's who check out this site will look at "Rico's" compensation plan and roll on the floor delirious with laughter.
 
O

olcc

Guest
Ricochet's post is spot-on. This would be the ideal, rational, solution and one that Express employees deserve after all the takeways over the past few years.

However, if we are talking about the absolute least that FedEx could do to satisfy employees, all they have to do is be transparent: tell us how long it should take to top out and stick to it. No double-talk, no ambiguity, no stringing people along and not revealing the raise amount until after peak. Be honest and let people know up front what their income potential at this job really is.
 

Ricochet1a

Well-Known Member
I should make one thing clear... The "plan" I put up would be a proposal or starting point for contract negotiations. FedEx isn't EVER going to give the wage employees ANYTHING it thinks it doesn't have to. I don't think FedEx in the lifetime of Fred or his successor would EVER think of such a plan without a union negotiator sitting across table staring at them.

It would take FedEx looking at a certified union, sitting across a table from them with strike authorizations pre-approved in order to get anything like I outlined done. What I outlined is indeed achievable for Express. The KoolAid drinkers won't believe it, since it would "pop" their view of the world as is (if they did believe it could happen, they'd know they were fooled by FedEx all these years - and they don't want to admit that to themselves - no one wants to admit they were fooled).

For the FY 10, Express made $20.5 Billion in revenue. By my costing analysis, the blueprint I put up would cost Express between $600 and $750 million (over what they are paying now). That works out to between 3 and 3.6% of annual revenues.

You can't tell me that it is impossible for FedEx to take the measures necessary (reduce executive compensation and perks, get rid of the executive jet fleet that is used to give special travel for Members of Congress at a loss to FedEx, trim the number of staff positions who shuffle paper in Memphis, extend the utilization time of equipment) and finally boost shipping rates by a puny 1% over planned "inflation" - to enable such a plan to be implemented.

The reason such a compensation plan doesn't exist is due to the fact that Fred is confident he can remain union free, and therefore not compelled to pay middle class wages to his wage work force.

You're not going to get UPS level compensation - but with a certified union, you'll come damn close.

Put the purple KoolAid down and THINK about what you can really get.

I'm out - but if you are for whatever reason still at FedEx, run the numbers - the cash is there. Fred wants to keep the status quo and as long as he has the RLA on one hand and plenty of KoolAid drinkers on the other - he'll be laughing at the end of each quarter when he reviews his profits and labor expenses.
 

LTFedExer

Well-Known Member
You know when I was interviewed for this courier position they ( the recrutier) said I would top out in 2 years. Well, I beginning my fifthteenth year some March and I still have'nt topped out. The manager's who check out this site will look at "Rico's" compensation plan and roll on the floor delirious with laughter.

If the raises had stayed the way they were when you were hired, you would be topped out.
 
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