We hear now and then that the company is looking at raising pay for mid-range employees. I've heard this for so long I no longer believe it. If they were sincere about better pay we'd have done better than up to 4.5% on this latest plan.
So here's my proposal. And I know this won't sit well with those who want much more. But the company holds all the cards. My proposal is double the percentages on the cash balance plan. Instead of 3%, 5%, 7%, 9% make it 6%, 10%, 14%, 18%. Keep the interest at 1% per quarter. Keep the 401K match. Keep the 4.5% and 3% raise maximums. And stick with them through good times and bad.
No, you don't have to do anything. But in the long run couriers are going to stick around if they've got something to work for. And as is there's little incentive to stick around fir today's newhires. You'll still pay considerably less than under the traditional pension. And this plan still doesn't pay that much until the courier puts in considerable time. And the money you'll save on turnover will pay for much of it.
Considering today's climate this will make FedEx much more competitive in attracting qualified employees. You will be running out soon of experienced employees that stuck with it for the pension and their higher top-out pay. As more and more are mid-range employees without the incentives the older couriers received you will have to come up with something. How do you explain to customers the endless stream of new faces? A reason to retire here means continuity for customers.
For those that think there's an even better way let's hear it. But be realistic. Anger won't get us anywhere. They hold all the cards, and they know it. But they have to know that as things stand they are going to lose too many people they spent alot of money hiring and training. Things aren't good enough as is, they can be better.
So here's my proposal. And I know this won't sit well with those who want much more. But the company holds all the cards. My proposal is double the percentages on the cash balance plan. Instead of 3%, 5%, 7%, 9% make it 6%, 10%, 14%, 18%. Keep the interest at 1% per quarter. Keep the 401K match. Keep the 4.5% and 3% raise maximums. And stick with them through good times and bad.
No, you don't have to do anything. But in the long run couriers are going to stick around if they've got something to work for. And as is there's little incentive to stick around fir today's newhires. You'll still pay considerably less than under the traditional pension. And this plan still doesn't pay that much until the courier puts in considerable time. And the money you'll save on turnover will pay for much of it.
Considering today's climate this will make FedEx much more competitive in attracting qualified employees. You will be running out soon of experienced employees that stuck with it for the pension and their higher top-out pay. As more and more are mid-range employees without the incentives the older couriers received you will have to come up with something. How do you explain to customers the endless stream of new faces? A reason to retire here means continuity for customers.
For those that think there's an even better way let's hear it. But be realistic. Anger won't get us anywhere. They hold all the cards, and they know it. But they have to know that as things stand they are going to lose too many people they spent alot of money hiring and training. Things aren't good enough as is, they can be better.
