Discussion in 'FedEx Discussions' started by Jayhawk, Aug 19, 2014.
What determines the market level of a station?
It's supposed to be based on a formula made up of cost of living, median housing prices etc. which is BS. Basically, FedEx pays as little as possible, so if you live in NYC or SFO, it takes more money to attract people willing to work at a shat hole....they have many more options than the residents of Nowhere, Arkansas.
In short, market levels are another dimension of the non-union scam at FedEx. Just another way they eff you over.
Fedex Market Level Formula
High cost of living index = low market level
Medium cost of living index = lower market level
Low cost of living index = even lower market level
The primary goal is to pay as little as possible and still attract workers. In markets with good jobs available FedEx will pay more to be competitive. It's not based on local cost of living, although in areas of the Northeast, Pacific Coast, Alaska, and Hawaii the cost of living is so high that they have no choice but to pay more. But there are very expensive cities, primarily out West, where the economy is mostly tourism based so they pay usually the bottom two payscales. This is because there's a steady stream of people waiting tables, driving cabs, etc who'll take anything to stay in those towns and FedEx looks attractive compared to local options.
FedEx doesn't bother trying to do much to help retain people in these areas. It isn't unusual for couriers to live many miles from the stations because they can't afford to live in the cities where they work. The only thing I ever heard our DM talk about as far as helping those employees out was getting them gas cards when gas prices first started going over $3 a gallon. When asked about having higher market levels for these areas (ie, the price of doing business) he just shrugged his shoulders and said that's not how it works. They would rather ask for volunteers, use cartage agents, spend countless $$$ hiring, training and losing people than pay them a wage that actually retains people. The oil and gas producing communities are having the same problems retaining employees. It seems incredibly short-sighted when you consider the fact that most of these stations are on the small side so it isn't as though FedEx would be shelling out a lot more money on those locations.
Fred obviously likes to keep his workforce poor. It certainly does cost him more doing so with a revolving door of employees but his out of control ego won't allow him to do it any other way. It makes him look more powerful, at least in his own mind.
Not even close otherwise the "oil boom" states ND SD WY UT and others would have better $$ they lose people every day to the oil fields...
I saw on the FedEx.com website under "careers" recently that they were starting couriers in western North Dakota at almost $23hr. That's how insane that area has become.
They have been increasing, (grudgingly) the pay scale in those oil boom areas.
Does UPS follow "Market Level" scale or do they pay their employees equally?
While there are minor differences our top rate is basically the same throughout the country.
~$23 pr/hr is basically what our sta. top-out is.
And, we're in the middle of the market levels and on the extreme W. coast. Ocean view for me everyday on my rte.
The lowest payscale topout, B, is mid-$23hr now.
Separate names with a comma.