April 2018 pay action (On Topic Please)

[fedex_rtd]

employees in steps 1-9 will advance to the next step in their step progression plan.

Employees at step 10 will receive two lump sum payments totaling 3% of the employees annual pay based on their hourly rate on March 25 2018. The first will be paid 01 April, and the second will be paid in October 2018.

There will be NO increase in pay rates for any of the steps.

There will be no other pay action planned for October 2018. The next planned pay action will be October 2019.

I would ask all that comment on this thread to please stay ON TOPIC thank you.

 

[Oldfart]

This should get interesting. Getting a pay raise early and people whine. The company should have just kept the Oct raise schedule so people would have to find something else to complain about.

 

[Operational needs]

I should be getting a nice little bump.

 

[Route 66]

FedEx is the master of the shell game.

 

[fedex_rtd]

This should get interesting. Getting a pay raise early and people whine. The company should have just kept the Oct raise schedule so people would have to find something else to complain about.

If we were to receive our “normal” pay raise six months early, I would agree with you...no reason to complain, and every reason to be happy. However that is NOT the situation that we learned of today.

 

[Oldfart]

If we were to receive our “normal” pay raise six months early, I would agree with you...no reason to complain, and every reason to be happy. However that is NOT the situation that we learned of today.

I was asked a week ago how I would feel if topped out didn't get the same as the less than topped out. I am satisfied with the lump sum but would rather have a raise. I understand why I am not. If topped out got a raise and other steps didn't, it would cause a bigger gap between 9 and 10 since they just got moved to the next step but that step got no raise. A lump sum on 2080 hrs does nothing on OT but I will take it.

 

[SmithBarney]

I should be getting a nice little bump.

And your bump will be held back for 18months, which means you'll be getting the same pay 18 months from the raise, with or without the pay action. I can't wait to see how they try and spin this.

 

[vantexan]

I was surprised last year when they adjusted the brackets up, but I think things are coming into focus. Everyone is on a step progression now, your raise will be the next step. For topped out people you'll get a bonus if you get anything. There won't be an annual cost of living raise along with your step. People who believed that were IMO being overly optimistic considering all the years of small raises. That would be getting a 6%-7% step raise PLUS an annual 3%(or 2%) cost of living adjustment. More likely they'll look at where the brackets stand every 4 or 5 years and make an adjustment if they feel it's needed. If employee turnover settles down there won't be an incentive to give topped out bonuses either. Most likely they'd be happy for 40 somethings to quit and be replaced rather than pay them top pay for another 20 years. So get your 9 years worth of raises, settle for an adjustment every 5 years or so after topping out, and pray that inflation stays low.

 

[SmithBarney]

Dude, you getting a raise 6 months EARLY. Are you not smart enough to realize it is an advantage to get a raise 6 months EARLY. Get someone to do the math for you.

Like I said. Call payroll and have them delay your raise. You obviously are not happy about getting a raise. Typical response.

The advantage
(which only lasts for 6months before you are back to where you would have been) is minimal at best.
~$1000 for most employees(pretax)
Step 1 earning 720 more
Step 10 getting a bonus of 1560

Like I SAID, in 18months(next Oct2019) you'll still be making the same as you would have without this pay action.

They would have been better off paying bonuses, except this looks better to NEWS organizations.

 

[Oldfart]

The advantage
(which only lasts for 6months before you are back to where you would have been) is minimal at best.
~$1000 for most employees(pretax)
Step 1 earning 720 more
Step 10 getting a bonus of 1560

Like I SAID, in 18months(next Oct2019) you'll still be making the same as you would have without this pay action.

They would have been better off paying bonuses, except this looks better to NEWS organizations.

You are correct. Getting a $1000 raise sucks. Getting a $1500 bonus really sucks.

You would cry if they gave 10% raises.

 

[MAKAVELI]

The advantage
(which only lasts for 6months before you are back to where you would have been) is minimal at best.
~$1000 for most employees(pretax)
Step 1 earning 720 more
Step 10 getting a bonus of 1560

Like I SAID, in 18months(next Oct2019) you'll still be making the same as you would have without this pay action.

They would have been better off paying bonuses, except this looks better to NEWS organizations.

They will probably actually save money by giving step raises early and not increasing top out and steps. A shell game at its finest.

 

[MAKAVELI]

Would you care for some cheese with your WHINE?

Cheese and wine sounds better than kneepads. You probably could use a new pair.

 

[DriveInDriveOut]

Dude, you getting a raise 6 months EARLY. Are you not smart enough to realize it is an advantage to get a raise 6 months EARLY. Get someone to do the math for you.

Like I said. Call payroll and have them delay your raise. You obviously are not happy about getting a raise. Typical response.

It's a bonus spread out over 6 months. We've been over this.

 

[fedex_rtd]

Dude, you getting a raise 6 months EARLY. Are you not smart enough to realize it is an advantage to get a raise 6 months EARLY. Get someone to do the math for you.

Ok lets do the math...
The base figures I am going to use are for a B3 C3 pay scale at step 9 going to step 10
Step 9 pay is $32.16 per hour. Step 10 pay is $33.71. A full time employee is going to work 40 hours a week 52 weeks a year for a total of 2080 per year, are we in agreement?

October 2017 this individual became step 9 at 32.16, April 2018 became step 10 at $33.71, will not see a pay action until October 2019.
$32.16 X 1040 hours = $33,446 that is gross pay October 2017 to April 2018
$33.71 X 1040 hours = $35,058 that is gross pay April 2018 to October 2018
$33.71 X 2080 hours = $70,116 that is gross pay October 2018 to October 2019
Total pay for 24 month period $138,620

Now lets see what would have happened if the pay action had been a normal step increase along with the historical 3% bump that top of range has been seeing for the past 6+ years. Step 10 would go from $33.71 to $34.72
$32.16 X 2080 hours = $66,892 that is gross pay at step 9 October 2017 to October 2018
$34.72 X 2080 hours = $72,217 That is gross pay at step 10 October 2018 to October 2019
Total pay for 24 month period $139,109

The difference is $489 had we waited and got our "normal" pay action we would have received $489 more in our gross pay. This six month early pay action cost us real money.

The company sold us on this is such a great thing, the company is getting this HUGE, GREAT, tax break and we are passing it on to you guys in the form of an early pay raise. It's kind of like seeing this item on Amazon that looks great and amazing, but when you get it home and you open it up, you realize that it's just a poor Chinese knockoff of the real thing.

This is a great move by the company...they get great PR for giving out a pay raise 6 months early, and they get to save money by paying us less in the long run, and by not raising the top of range they are also saving money down the road.

Why did the company do this? The economy has been improving for the past 7 years, our district is doing great, lots and lots of volume both inbound and outbound.

I can only think of a couple of reasons why the company shorted us on this pay action, either the company see's an economic slow down hitting us hard in 2 years, or the company is in financial distress.

Anyone care to double check my math?

 

[vantexan]

Ok lets do the math...
The base figures I am going to use are for a B3 C3 pay scale at step 9 going to step 10
Step 9 pay is $32.16 per hour. Step 10 pay is $33.71. A full time employee is going to work 40 hours a week 52 weeks a year for a total of 2080 per year, are we in agreement?

View attachment 180766

October 2017 this individual became step 9 at 32.16, April 2018 became step 10 at $33.71, will not see a pay action until October 2019.
$32.16 X 1040 hours = $33,446 that is gross pay October 2017 to April 2018
$33.71 X 1040 hours = $35,058 that is gross pay April 2018 to October 2018
$33.71 X 2080 hours = $70,116 that is gross pay October 2018 to October 2019
Total pay for 24 month period $138,620

Now lets see what would have happened if the pay action had been a normal step increase along with the historical 3% bump that top of range has been seeing for the past 6+ years. Step 10 would go from $33.71 to $34.72
$32.16 X 2080 hours = $66,892 that is gross pay at step 9 October 2017 to October 2018
$34.72 X 2080 hours = $72,217 That is gross pay at step 10 October 2018 to October 2019
Total pay for 24 month period $139,109

The difference is $489 had we waited and got our "normal" pay action we would have received $489 more in our gross pay. This six month early pay action cost us real money.

The company sold us on this is such a great thing, the company is getting this HUGE, GREAT, tax break and we are passing it on to you guys in the form of an early pay raise. It's kind of like seeing this item on Amazon that looks great and amazing, but when you get it home and you open it up, you realize that it's just a poor Chinese knockoff of the real thing.

This is a great move by the company...they get great PR for giving out a pay raise 6 months early, and they get to save money by paying us less in the long run, and by not raising the top of range they are also saving money down the road.

Why did the company do this? The economy has been improving for the past 7 years, our district is doing great, lots and lots of volume both inbound and outbound.

I can only think of a couple of reasons why the company shorted us on this pay action, either the company see's an economic slow down hitting us hard in 2 years, or the company is in financial distress.

Anyone care to double check my math?

Where you're going wrong is assuming that they would continue the 3% bump. That's what they used to give to keep top out happy while they were giving midrange 2% raises. They have a new plan in place and everyone is either getting their normal October raise 6 months early, that's 6 months of extra pay, or if topped out getting two bonus checks of 3% total. And they did a couple of years worth of adjustments putting the new plan in place. It's been their practice for as long as I can remember to take from one or more groups to pay what they gave to another. In this case midrange courier pay was finally addressed but top out will most likely have to settle for just being topped out most years. And as couriers are the single biggest group in the company by far most likely other groups, like managers, are going to feel a pinch too. By the way I think that C3 group refers to RTD's and/or dispatchers but not sure.

 

[fedex_rtd]

Had the company actually given us a "normal" raise six months early the math would have worked out like this...
$32.16 X 1040 hours = $33,446 that is Gross pay October 2017 to April 2018
$34.72 X 1040 hours = $36,108 that is gross pay April 2018 to October 2018
$34.72 X 2080 hours = $72,217 that is gross pay October 2018 to October 2019
Total pay for 24 month period $141,771

The total difference a whopping $3151

THAT is the raise we should have gotten. After all the economy is booming, and we are starting to see inflation eat away at our earnings, but the company instead of doing the right and honest thing, went for the PR win and the shell game.

 

[vantexan]

Had the company actually given us a "normal" raise six months early the math would have worked out like this...
$32.16 X 1040 hours = $33,446 that is Gross pay October 2017 to April 2018
$34.72 X 1040 hours = $36,108 that is gross pay April 2018 to October 2018
$34.72 X 2080 hours = $72,217 that is gross pay October 2018 to October 2019
Total pay for 24 month period $141,771

The total difference a whopping $3151

THAT is the raise we should have gotten. After all the economy is booming, and we are starting to see inflation eat away at our earnings, but the company instead of doing the right and honest thing, went for the PR win and the shell game.

In other words they should have given two step increases this year? That would be great but this is FedEx. Will be really interesting in Oct. 2019 if they don't give a bonus to topped out couriers.

 

[Maui]

For Step 10 that has to hurt a bit. Some were actually above the Step 10 level when the steps started and received a less than 3% raise October 2017. Now they will get a lump sum based on hourly rate, which is more money, but in October 2019 they really will have gone 3 years with a 1.8% raise with no idea whether or not they will even see a raise then.

The PR for this is much better than the reality for pay.

 

[Purplepackage]

To be completely honest, the raise we got last year was completely unheard of for this company.

To think that they would give that much again would be crazy. Just be happy with the step bump(which is already higher because they increased the step amounts last year with the raise).

There’s a few guys at my station who have been here about 3 years and have already gotten like 5 raises. All I can say is that they aren’t complaining

 

[McFeely]

There’s a few guys at my station who have been here about 3 years and have already gotten like 5 raises. All I can say is that they aren’t complaining

Yeah, we have a guy who started in the summer of 2017 at Step 1. Got a bump to Step 2 (+ 3%) in October. Come April, he'll be at Step 3 already in less than one year. Good for him, a slap in the face to those who took 10 years to reach Step 3 pay.