Anyone see official Buyout letter today ?

Catatonic

Nine Lives
That's consistent with what I've heard over the past few weeks. There's a surprising amount of overlap in support staff roles and the rumor is that as many as 3500 will be offered buyouts before all is said and done.

Highly unlikely to be generous. The one article says that those getting buyouts don't handle packages and don't supervise people that handle packages. That would rule out quite a few of those 115,000 to 158,000 people they said work for Express.

But who do they want gone? They must have an idea of what it would take to get those people to take the buyout. It may not be generous, but it just may be enough to get their butts out the door.

If the OP really has seen an official letter, I would like to know the details. I am tired of the rampant speculation and would like to get on with it already.

UPS had a similar buyout in 2007 and the take rate was less than 20%.
If one was not eligible for early retirement at the date of severance, it was a rather poor offer.
Primarily, because the payout could not be rolled into 401k or IRA.
They came back in 2010 with a buyout aimed at people eligible for retirement.
That worked better.
 

Ricochet1a

Well-Known Member
From the numbers I got this afternoon, it is looking like they are going to dump at least 10, and upwards to 15% of the Memphoids.

It is curious that XS just happens to be the same proportion of overall Express volume...

And these aren't going to be "early retirement" options - they are euphemistically calling them "buyouts", but are in fact targeted eliminations of employees. Layoffs in anyone elses dictionary. If one is occupying a "productive" position, they won't be offered ANY early retirement option. If one is in their early 30's and just happens to occupy a redundant position - away they go.

There is no official word if those who are targeted will be offered the opportunity to bid on positions in operations (or heaven forbid, a wage position) - or if they will merely be handed a "take it or leave it" deal.

The poetic irony to this all, is that some of the "engineers" that have been working to perfect DRA (enabling Express to eventually dump career Couriers), will be in front of the guillotine themselves.

I'll keep my fingers crossed for Dano...
 

zapmail

Well-Known Member
Many thought this would come in October..so what's in store for October? MT3--"we were very surprised at the underwhelming response to our generous offer for voluntary termination of employment, at this time it saddens my heart to announce we have no other options to further the existance of DGO than to mandate station by station layoffs as they are needed"........
 

Ricochet1a

Well-Known Member
Many thought this would come in October..so what's in store for October? MT3--"we were very surprised at the underwhelming response to our generous offer for voluntary termination of employment, at this time it saddens my heart to announce we have no other options to further the existance of DGO than to mandate station by station layoffs as they are needed"........

Nope....

No station layoffs will be needed.

Reference earlier discussions as to "attrition", and how that will play in shaping the composition of the Courier workforce - in particular the full-time Courier proportion.
 

vantexan

Well-Known Member
From the numbers I got this afternoon, it is looking like they are going to dump at least 10, and upwards to 15% of the Memphoids.

It is curious that XS just happens to be the same proportion of overall Express volume...

And these aren't going to be "early retirement" options - they are euphemistically calling them "buyouts", but are in fact targeted eliminations of employees. Layoffs in anyone elses dictionary. If one is occupying a "productive" position, they won't be offered ANY early retirement option. If one is in their early 30's and just happens to occupy a redundant position - away they go.

There is no official word if those who are targeted will be offered the opportunity to bid on positions in operations (or heaven forbid, a wage position) - or if they will merely be handed a "take it or leave it" deal.

The poetic irony to this all, is that some of the "engineers" that have been working to perfect DRA (enabling Express to eventually dump career Couriers), will be in front of the guillotine themselves.

I'll keep my fingers crossed for Dano...

LOL...
 

zapmail

Well-Known Member
I just don't see that many people jumping ship because they can only get 35 hours (maybe less if they do away with guarantee pay) but who knows..FYI the shareholders meeting is Oct. 9th and 10th (if anyone is curious on the date)
 

Ricochet1a

Well-Known Member
I just don't see that many people jumping ship because they can only get 35 hours (maybe less if they do away with guarantee pay) but who knows..FYI the shareholders meeting is Oct. 9th and 10th (if anyone is curious on the date)

Then I'd put the "official announcement" regarding the changes being made on Monday, October 8th, and the employees will get something to read (or read to them by their manager), later in the week, most likely on Friday October 12th. We'll see if my hunch is right.
 

DontThrowPackages

Well-Known Member
Highly unlikely to be generous. The one article says that those getting buyouts don't handle packages and don't supervise people that handle packages. That would rule out quite a few of those 115,000 to 158,000 people they said work for Express.

But who do they want gone? They must have an idea of what it would take to get those people to take the buyout. It may not be generous, but it just may be enough to get their butts out the door.

If the OP really has seen an official letter, I would like to know the details
. I am tired of the rampant speculation and would like to get on with it already.

FedEx Corp. Will Offer Voluntary Buyouts to Eligible Staff Employees | FedEx Global Newsroom
 

vantexan

Well-Known Member
Nope....

No station layoffs will be needed.

Reference earlier discussions as to "attrition", and how that will play in shaping the composition of the Courier workforce - in particular the full-time Courier proportion.

There are so many older couriers out there that quite a few will be gone in a few years anyways. If the goal is to be overnight only in a couple of years most stations should be reduced enough in workforce to structure rts for minimal hrs without a bunch of extra people with not enough to do. We won't get overtime, but I doubt we'll be under 35 hrs and most likely will have opportunities to work Saturday, Mother's Day Sunday, Christmas Day, sick days, etc. Not the environment to get a good check with OT, but can get by. As long as they keep giving raises I'm not giving up 4 weeks of vacation and portable pension deposits to start over elsewhere.

But if they stop giving raises again, and plug part-timers into any opportunity for extra hours, and generally make things very tough, I'll look at other options. I like the job, not thrilled with the company.
 

Ricochet1a

Well-Known Member

Ricochet1a

Well-Known Member
There are so many older couriers out there that quite a few will be gone in a few years anyways. If the goal is to be overnight only in a couple of years most stations should be reduced enough in workforce to structure rts for minimal hrs without a bunch of extra people with not enough to do. We won't get overtime, but I doubt we'll be under 35 hrs and most likely will have opportunities to work Saturday, Mother's Day Sunday, Christmas Day, sick days, etc. Not the environment to get a good check with OT, but can get by. As long as they keep giving raises I'm not giving up 4 weeks of vacation and portable pension deposits to start over elsewhere.

But if they stop giving raises again, and plug part-timers into any opportunity for extra hours, and generally make things very tough, I'll look at other options. I like the job, not thrilled with the company.

Sixth day OT is already supposed to be gone (big no-no if someone is scheduled 6 days, or on their 5th if they are a 4x10).

With Express looking at taking people to the chopping block - what makes you think they'll be offering "pay raises" - other than some nominal amount that accounts for inflation?

Until the final blow is delivered (complete shifting of deferred volume over to Ground for delivery), I have no doubt that minimums will apply and full-timers will work close to that. But there are many full-timers out there (especially those with 20+ years) that think that "nothing will ever change, volumes come up and go down, and I'll have a job for as long as I want it". They are the ones that are going to be experiencing the shock of a lifetime in the not too distant future.

And it is these same people that just can't figure out why all the Sprinters are coming in, and how the "bulk volume" is to be moved in these tiny trucks....


There won't be that bulk volume in the future.... it has all been planned out...
 

vantexan

Well-Known Member
Sixth day OT is already supposed to be gone (big no-no if someone is scheduled 6 days, or on their 5th if they are a 4x10).

With Express looking at taking people to the chopping block - what makes you think they'll be offering "pay raises" - other than some nominal amount that accounts for inflation?

Until the final blow is delivered (complete shifting of deferred volume over to Ground for delivery), I have no doubt that minimums will apply and full-timers will work close to that. But there are many full-timers out there (especially those with 20+ years) that think that "nothing will ever change, volumes come up and go down, and I'll have a job for as long as I want it". They are the ones that are going to be experiencing the shock of a lifetime in the not too distant future.

And it is these same people that just can't figure out why all the Sprinters are coming in, and how the "bulk volume" is to be moved in these tiny trucks....


There won't be that bulk volume in the future.... it has all been planned out...

We are supposed to be under a new pay raise scheme that started in March. 3% if in the bottom half of the pay range, 5% in 3rd quartile, 6% in 4th quartile. Of course the problem with this system is if they raise either starting or top pay then the middle of the range moves up too, albeit not as much. Those in bottom quartile could be chasing mid-point for a very long time. And if economy greatly worsens they may scrap plan. But all the changes they are implementing ought to keep this small raise scheme going for awhile.

You allude to it, but what exactly do YOU think WILL happen when we're strictly an overnight service?
 

vantexan

Well-Known Member
We are supposed to be under a new pay raise scheme that started in March. 3% if in the bottom half of the pay range, 5% in 3rd quartile, 6% in 4th quartile. Of course the problem with this system is if they raise either starting or top pay then the middle do the range moves up too, albeit not as much. Those in bottom quartile could be chasing mid-point for a very long time. And if economy greatly worsens they may scrap plan. But all the changes they are implementing ought to keep this small raise scheme going for awhile.

Saturday OT happens every week at my station.

You allude to it, but what exactly do YOU think WILL happen when we're strictly an overnight service?

Don't know how I did that but they're always offering Saturday OT at my station.
 

Ricochet1a

Well-Known Member
Why offer buyouts? Wouldn't it be cheaper just to lay everyone off?

A "buyout" is considered a voluntary termination on the part of the employee - the employee ISN'T eligible for unemployment if they accept a "buyout" from their employer. The buyout WILL HAVE a statement within it that specifies that the employee is voluntarily terminating their employment (quitting), in exchange for a payout of a sum agree to.

They will lay people off if they have to - they did it back in 2009. FedEx wants to avoid the unemployment compensation liability if at all possible.

So all those who are "targeted", will (if they are smart), look at the size of the offered buyout, and compare that to the net value of unemployment compensation (the vast majority of them will be TN residents) should they not accept the offer. They will also start looking for a job come October (once the positions to be eliminated are officially identified) and if they happen to find something before the March-April buyout dates - they'll jump ship (and take the buyout and run). If not, then they'll decide whether it is wise to take the buyout (and forgo unemployment), or refuse the money and have FedEx formally lay them off.
 

Ricochet1a

Well-Known Member
Don't know how I did that but they're always offering Saturday OT at my station.

Most stations are VERY stingy about offering 6th day OT now. They want to have all Saturday employees working straight time.

But then on Monday's, they don't have a problem having the full-timers work pickup routes covering for the part-timers who are stuck working Saturday. It comes up "sixes" in the end, but on the report, 6th Day OT is a big no-no, while OT on a regular scheduled day isn't as big an issue.
 

vantexan

Well-Known Member
Most stations are VERY stingy about offering 6th day OT now. They want to have all Saturday employees working straight time.

But then on Monday's, they don't have a problem having the full-timers work pickup routes covering for the part-timers who are stuck working Saturday. It comes up "sixes" in the end, but on the report, 6th Day OT is a big no-no, while OT on a regular scheduled day isn't as big an issue.

East Texas has been fairly steady throughout the recession. I hear about how bad it is elsewhere but I manage 45-47 hrs a week legitimately. Some do 50 hrs and are topped out.
 

Ricochet1a

Well-Known Member
We are supposed to be under a new pay raise scheme that started in March. 3% if in the bottom half of the pay range, 5% in 3rd quartile, 6% in 4th quartile. Of course the problem with this system is if they raise either starting or top pay then the middle of the range moves up too, albeit not as much. Those in bottom quartile could be chasing mid-point for a very long time. And if economy greatly worsens they may scrap plan. But all the changes they are implementing ought to keep this small raise scheme going for awhile.

You allude to it, but what exactly do YOU think WILL happen when we're strictly an overnight service?

May I ask, why do you believe that the system instituted in March of 2012 will continue in force after that date?

Is there a screen in PRISM, that states pay raises for wage employees based on progression?

With the threat of unionization gone from Express (it wasn't back when they cooked up the 2012 raises back in January), why do you think those at 50%+ progression will get anything above anyone else?

Companies that have pulled out the guillotine DON'T go around and start offering pay raises to everyone that is left. Wage employees aren't at the chopping block, but take a "step back" and look at things from the perspective of the salaried staff employees (not trying to get one to shed tears for them, but take a realistic look at the HR implications of what is happening).

If Express does offer the wage employees anything above a 3% raise, AFTER chopping salaried staff and presumably holding their compensaton back - what will the salaried employees do? What risks does FedEx face from "discontented" salaried employees who feel that THEY are getting the screwing this time around? FedEx is still feeling the fury of chopping the pension plan back 4 years ago. They only dare tread so far - they know that they had not better not alienate those in a position to REALLY screw things up should they feel "slighted".
 
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