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Classic Upper Management Fail
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<blockquote data-quote="Ricochet1a" data-source="post: 1004535" data-attributes="member: 22880"><p>So...</p><p></p><p>"Level 1" - $600 a week and no health insurance, retirement plan. Works out to about $12/hr. Heath insurance for a family (somewhat equivalent to Express' plan, would cost about $8,000/yr, or roughly $150/wk. So to compare apples to apples (Ground to Express entry level Courier) - the Ground driver is netting $450/wk (after health insurance costs) and making about $9/hr for his work.</p><p></p><p>"Level 2" - $750 a week and no health insurance or retirement plan. Works out to about $13.60/hr (if it were paid as a wage with OT liability). After the cost of health insurance, falls to net of $600/wk or about $11/hr for his work with health insurance deducted. </p><p></p><p>"Level 3" - $800 a week and no insurance or retirement. Works out to about $14.50/hr (if it were paid as a wage with OT liability). After the cost of health insurance, falls to net of $650/wk or about $11.80/hr for his work with health insurance deducted. </p><p></p><p>I didn't even include the value of the Express PPP or 401k match. If these were to be "matched", the effective hourly rate for the drivers would fall by about $1/hr (giving them the benefit would require a deduction of about $50/week to keep the out-of-pocket cost for the contractor the same).</p><p></p><p>So...direct comparison of Ground driver to Express Courier, matching ALL apples to apples (doing all the adjustments so that a direct comparison can be made between the two based SOLELY off of wage rate)</p><p></p><p>Level 1 - $8/hr</p><p></p><p>Level 2 - $10/hr</p><p></p><p>Level 3 - $10.80/hr</p><p></p><p>The above allows a DIRECT comparison between effective Express compensation, to what a Ground driver makes - HAD the cost of the equivalent benfits been deducted from their pay. </p><p></p><p>You can see very clearly why the Ground business model is so profitable for FedEx.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1004535, member: 22880"] So... "Level 1" - $600 a week and no health insurance, retirement plan. Works out to about $12/hr. Heath insurance for a family (somewhat equivalent to Express' plan, would cost about $8,000/yr, or roughly $150/wk. So to compare apples to apples (Ground to Express entry level Courier) - the Ground driver is netting $450/wk (after health insurance costs) and making about $9/hr for his work. "Level 2" - $750 a week and no health insurance or retirement plan. Works out to about $13.60/hr (if it were paid as a wage with OT liability). After the cost of health insurance, falls to net of $600/wk or about $11/hr for his work with health insurance deducted. "Level 3" - $800 a week and no insurance or retirement. Works out to about $14.50/hr (if it were paid as a wage with OT liability). After the cost of health insurance, falls to net of $650/wk or about $11.80/hr for his work with health insurance deducted. I didn't even include the value of the Express PPP or 401k match. If these were to be "matched", the effective hourly rate for the drivers would fall by about $1/hr (giving them the benefit would require a deduction of about $50/week to keep the out-of-pocket cost for the contractor the same). So...direct comparison of Ground driver to Express Courier, matching ALL apples to apples (doing all the adjustments so that a direct comparison can be made between the two based SOLELY off of wage rate) Level 1 - $8/hr Level 2 - $10/hr Level 3 - $10.80/hr The above allows a DIRECT comparison between effective Express compensation, to what a Ground driver makes - HAD the cost of the equivalent benfits been deducted from their pay. You can see very clearly why the Ground business model is so profitable for FedEx. [/QUOTE]
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