AGFS Panic Call

[MrFedEx]

According to my sources at the ramp, AGFS had an "emergency" conference call for all management yesterday concerning an abysmal SFA and the impending changes to the RLA. I'm hearing a 2% raise and re-starting the 401k match plan for now.

BFD!! That puts us where we were a year ago, and still about 15 years behind in wages and benefits. They're going to sell it hard if this is the plan and tell us all the sacrifices they are making "for us". Don't believe one freaking word from these liars. Please consider all they've done for us (to us) in the past. Screw the whole bunch of them.

 

[Catatonic]

According to my sources at the ramp, AGFS

Aviation Gridded Forecast System ?

 

[over9five]

Allknowing God friendred Smith?

 

[MrFedEx]

Allknowing God friendred Smith?

I like this one....very appropriate for the demi-god Smith. Actually, it's an acronym for the aircraft and trucking side of the FedEx Express operation.

 

[Ricochet1a]

I heard news to the same effect. Supposedly there was going to be a 1% pay raise for all hourly employees announced in the next week or so (been in planning stages since the pay raise was suspended in March). They're going to up it to 2%. Haven't heard about restoring the 401k matching funds. They'd have to do that to ALL employees (salaried and wage), or they'd have a riot among the salaried force in Memphis. It would be a "bone" from Fred and nothing more.

There is supposed to be some sort of meeting that Senior managers are going to have at their locations sometime this month, where they'll do a dog and pony show to try to gin up some loyalty for FedEx and try to convince/con the employees to not sign union cards if the RLA exemption gets pulled.

Assuming there was a conference call among AGFS (Air-Ground Freight System for the UPS folks), I didn't hear about a call among DGO (Domestic Ground Operations) managers; this tells me FedEx is scared, and their efforts to lobby the Senate aren't getting the results they are wanting. It has been awhile since I've been in the AGFS environment, but I know it has gotten even worse since I was there.

Looks like FedEx has blinked first. Trick is to keep them on the defensive and blinking until a contract is in force. The fight is starting to shape up ("choosing the battlefield" as is said in the military).

 

[MrFedEx]

I heard news to the same effect. Supposedly there was going to be a 1% pay raise for all hourly employees announced in the next week or so (been in planning stages since the pay raise was suspended in March). They're going to up it to 2%. Haven't heard about restoring the 401k matching funds. They'd have to do that to ALL employees (salaried and wage), or they'd have a riot among the salaried force in Memphis. It would be a "bone" from Fred and nothing more.

There is supposed to be some sort of meeting that Senior managers are going to have at their locations sometime this month, where they'll do a dog and pony show to try to gin up some loyalty for FedEx and try to convince/con the employees to not sign union cards if the RLA exemption gets pulled.

Assuming there was a conference call among AGFS (Air-Ground Freight System for the UPS folks), I didn't hear about a call among DGO (Domestic Ground Operations) managers; this tells me FedEx is scared, and their efforts to lobby the Senate aren't getting the results they are wanting. It has been awhile since I've been in the AGFS environment, but I know it has gotten even worse since I was there.

Looks like FedEx has blinked first. Trick is to keep them on the defensive and blinking until a contract is in force. The fight is starting to shape up ("choosing the battlefield" as is said in the military).

I agree....good comments. I think we should adopt a "scorched earth" policy in our battle with these greedy SOB's.

 

[MrFedEx]

There's blood in the water, and Fred is just about to lose his shark cage. I wonder if he tastes like chicken?

 

[Ricochet1a]

Posted on the fedxmx.com site today.

http://www.teamster.org/content/fedex-threatens-‘destroy’-members-congress

Excerpt:

FedEx CEO Fred S’s arrogant campaign of threats and intimidation continued this week when his top spokesman threatened to take down members of Congress who oppose FedEx’s position on a key piece of legislation.

When asked about FedEx’s multi-million dollar ad campaign against the legislation that is reported to launch on Tuesday, June 9, top FedEx flack Maury Lane told U.S. News and World Report in a story posted in The White House Bulletin, “I’m going to try to destroy them.”

End quote

(the "them" who are going to be destroyed are members of the Senate - their political careers...)

Looks like that "panic mode" is in full swing. If FedEx has their people that are in the public arena making quotes like this, they are DEFINATELY off their game plan. Making threats in private is one thing, making them public usually has the opposite effect (no one wants to seem to be pressured by a threat in public, carrys with it a loss of "face").

FedEx's reaction to the possibility of its RLA exemption getting pulled is beyond what one can call rational at this point. It is now in the realm of paranoia. Paranoid people (corporations) are unpredictable, dangerous and usually are their own worst enemy. When faced with an opponent such as this; it is usually best to keep on feeding them rope, and let them place their own head in a noose.

However, it does confirm to me the measures FedEx will go to in order to prevent a successful unionization. I've posted about the measures I've heard about to prevent a successful unionization. Also makes the changing of the 1% pay raise to a 2% raise in the aftermath of the SFA disaster make more sense too (spread some cash around to prevent a unionization).

I think FedEx has taken the internal line of union avoidance at ALL COSTS (no contingency plan of even having unions in some locations). This means that the dirty tricks are going to extend to the employees if the Senate does vote to pull the exemption (that "bulls-eye" I wrote about). This is why keeping a low profile right now is best IMO, to keep any retaliation possibility minimized. If the RLA is pulled (as it looks more and more like it will be) then will be the time to sign a card. Once one signs the card though, make sure you cross every "T" and dot every "i" on the job; since the bulls-sye will be present and the time period between signing a card and actually getting contract protection will be "perilous". The pressure from Memphis to get rid of employees that have signed a card through whatever disciplinary measures they can cook up will be intense (if they are "threatening" U.S. Senators, they can do a WHOLE lot more to mere employees).


Regardless on one's political leanings, arrogance such as displayed by FedEx must be confronted and punished. This simply cannot allowed to exist without some sort of attempt to create a sanction against FedEx (a union perhaps??...)

Looks like it will be a very hot summer (and a very cold winter...).

 

[jimstud]

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

 

[Ricochet1a]

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

It is true. When Express honored it annual payraise committment, there was a variable payraise given to each employee based upon their performance review scores. The annual pay raise could be as low as 2%, but typically ran between 5 and 6.5% each year. There is no cost of living adjustment in addition to this pay raise. FedEx usually raises both the top and bottom end of each pay scale by 3% to keep some sort of equity with national pay scales (to keep new hires coming in, and letting senior people get something to account for inflation each year). So under the rule that were in effect prior to March, it would take an employee about 15 years to hit the top of the pay scale for their job. Way back in the day, FedEx had semi-annual pay increases and employees could top out in 4 years. It has gradually been eroded to what it is today.

So a situation develops where an employee gets their pay increase (or did), and moves up the 5 to 6.5%. But the top and bottom numbers move up 3% too. It really shows for the employees that have 3 to 6 years in. A Courier that is at their 6 year point is typically making about 140% of their starting wage on the day they started (remember 6 years of inflation means that about 18 out of that 40 percentage points is lost). The bottom end of Courier pay in the mean time moves up 18% (covering inflation so new hires can be attracted). The difference between a new hire and a Courier at 6 years is only a few bucks (about $2.50 on average).

That Courier that started 6 years ago got around $12.50/hr (forgot the exact rate). With 6 years of typical pay raises, that Courier is making around $17.50 now. A new hire will make $15 off the street right now. It will take another 8 to 9 years for that Courier that has 6 years in, to hit the top end of the Courier pay scale (which is just above $22 right now in market level A - lowest scale). Nine years from now (using the rules that were in effect until March) the top end for a Courier will be around $36.50. Remember though, there is a lot of inflation betwen now and then, so it isn't as "big" as it seems.

This is where having our defined benefit pension plan taken from us really hurts. It was automatically indexed to inflation (ones highest paid years when one "retires"). Now, they are throwing in a few dollars into a company controlled "fund", and paying something like 4.5% interest on it. That is outrageous. Before, we got a maximum of 50% of the average of our high three years for a pension at age 60. Since pay increased each year, the effects of inflation were automatically cancelled out (the company assumed the risk for any splkes in inflation). Now, one's pension is actuarialy determined by how big the pot of money in one's "personal" fund. The employees take the risk if there is a spike in inflation. If we see double digit inflation (which we probably will a few years from now with all the deficit spending), we are stuck getting a low return on our "investment" (which we cannot control). It is a sham, and my chief reason to end this abuse and get some sort of union in to keep games like this from continuing.

 

[partykid]

How would 30 months till top pay sound!! I went to top pay the day i was hired full time, cause i temp drove so much! All you Fed-Ex union basher's enjoy your 15+ year wait! JMO

 

[jimstud]

It is true. When Express honored it annual payraise committment, there was a variable payraise given to each employee based upon their performance review scores. The annual pay raise could be as low as 2%, but typically ran between 5 and 6.5% each year. There is no cost of living adjustment in addition to this pay raise. FedEx usually raises both the top and bottom end of each pay scale by 3% to keep some sort of equity with national pay scales (to keep new hires coming in, and letting senior people get something to account for inflation each year). So under the rule that were in effect prior to March, it would take an employee about 15 years to hit the top of the pay scale for their job. Way back in the day, FedEx had semi-annual pay increases and employees could top out in 4 years. It has gradually been eroded to what it is today.

So a situation develops where an employee gets their pay increase (or did), and moves up the 5 to 6.5%. But the top and bottom numbers move up 3% too. It really shows for the employees that have 3 to 6 years in. A Courier that is at their 6 year point is typically making about 140% of their starting wage on the day they started (remember 6 years of inflation means that about 18 out of that 40 percentage points is lost). The bottom end of Courier pay in the mean time moves up 18% (covering inflation so new hires can be attracted). The difference between a new hire and a Courier at 6 years is only a few bucks (about $2.50 on average).

That Courier that started 6 years ago got around $12.50/hr (forgot the exact rate). With 6 years of typical pay raises, that Courier is making around $17.50 now. A new hire will make $15 off the street right now. It will take another 8 to 9 years for that Courier that has 6 years in, to hit the top end of the Courier pay scale (which is just above $22 right now in market level A - lowest scale). Nine years from now (using the rules that were in effect until March) the top end for a Courier will be around $36.50. Remember though, there is a lot of inflation betwen now and then, so it isn't as "big" as it seems.

This is where having our defined benefit pension plan taken from us really hurts. It was automatically indexed to inflation (ones highest paid years when one "retires"). Now, they are throwing in a few dollars into a company controlled "fund", and paying something like 4.5% interest on it. That is outrageous. Before, we got a maximum of 50% of the average of our high three years for a pension at age 60. Since pay increased each year, the effects of inflation were automatically cancelled out (the company assumed the risk for any splkes in inflation). Now, one's pension is actuarialy determined by how big the pot of money in one's "personal" fund. The employees take the risk if there is a spike in inflation. If we see double digit inflation (which we probably will a few years from now with all the deficit spending), we are stuck getting a low return on our "investment" (which we cannot control). It is a sham, and my chief reason to end this abuse and get some sort of union in to keep games like this from continuing.

that sucks.

 

[Ricochet1a]

I made an error in my calculation of the future pay rate of a Courier with 6 years time in service, 9 years from now. I forgot to clear out the values entered into the TVM (Time Value Money) financial calculation... It is actually just over $28/hr nine years from now, for a Courier that is making $17.50/hr right now. I should've known $36.50 was way off base (long day prior to posting).

 

[Ricochet1a]

This is the direct link to the article referenced in the Teamster’s link.

http://www.usnews.com/blogs/washington-whispers/2009/06/04/house-provision-could-cost-fedex-millions-stall-deliveries.html
Excerpt:
Federal Express is preparing to launch a multimillion dollar public-affairs campaign to derail House-passed legislation that would put the airline-based freight company under labor rules governing United Parcel Service, FedEx's trucking-based competitor. Worried that its costs could surge and overnight deliveries could be stalled by wildcat strikes if the changes are put into place, FedEx on Tuesday is expected to lay out a multimedia campaign using the Internet, TV, and paid advertising.
...
The campaign to stop the legislation from winning Senate approval will not target just wavering lawmakers. It's to be national in scope to also target customers and explain the difference in how each company is run. Unclear is whether it will also pick up on some FedEx charges that the provision is a bone to UPS and labor unions by Democrats in Congress. Also unclear is the impact of the company's threat to cancel its order for 30 Boeing 777 freighters if the Senate OK's the legislation.

End Quote

Wildcat strikes???... They must REALLY be freaked out by the results of the SFA. Also confirms my information regarding measures to ensure overnight deliveries can be made if particular stations do decide to engage in “wildcat strikes”.

If they are going to start making ads to the customers DIRECTLY to state their position, we’re going to have to do the same at all our stops. This is what I was talking about earlier, they are going to pull out all the stops to try to prevent us from even having the chance to decide if we want a union. We are going to have to do the exact same thing the UPS drivers did during their strike, talk to our customers and tell them we are just trying to stop the ongoing deterioration of our jobs. We have the advantage in that we can talk one-on-one, while FedEx will be using mass media techniques. If we keep a professional approach with our customers, we should be able to blunt the effect of Fred’s propaganda campaign. This is starting to become personal…

 

[MrFedEx]

I think the general public is finally starting to see through the FedEx facade. Fred's push against the RLA is beyond arrogant....it's obscene. Those of us on the inside have known he was a maniacal tyrant for years, and now his threats, tantrums, and tirades are letting the rest of the world in on the secret.

To have his shill Maury Lane directly threaten politicians is actually pretty stupid, at least from a PR standpoint. I'm sure Fred has some of them over a barrel because they've taken a lot of his money and "hospitality", but when are the rest of them going to grow a set and put this little piece of crap in his place?

As always, screw you Smith!!

 

[Testicular Fortitude]

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

Jim that was 15 years ago.As I have posted before any courier that has not reached top pay by now they never will until there is UNION REPRESENTATION at Fedex Express

 

[SmithBarney]

Couriers hired 15 yrs ago probably topped out in 2 years(they had a different system back then, don't know the cut off)

FedEx is panic'd they put out "anti-union" crap in our mailboxes, they are having a "state of the business" meeting in the next week or so at most stations.

Still trying to find out how to scan my "anti-union" crap and strip it of its source records in the file so I can hide myself.

 

[over9five]

Post copies of that anti-union crap. Love to see it!

 

[SmithBarney]

oh yeah and it names UPS as a Co-conspirator...

 

[MrFedEx]

oh yeah and it names UPS as a Co-conspirator...

Exactly. Fedex has painted the Teamsters and UPS as partners in the "crime" being committed against poor little Freddie. Posting it would be great...then everyone else on here can see how the propaganda program works.