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<blockquote data-quote="Ricochet1a" data-source="post: 543557" data-attributes="member: 22880"><p>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. </p><p> </p><p>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). </p><p> </p><p>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.</p><p> </p><p>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.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 543557, member: 22880"] 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. [/QUOTE]
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