Pay more, expect more.

[slowdriver]

I agree with your comments about Henry Ford, but FedEx is waaay behind the curve in terms of retirement, pay, and benefits. Anything they give you will only bring them (and you) to a point you probably should have been at 15 years ago. Plus, whatever you get, will be offset by a takeaway somewhere else, so your net gain (as always), will be zero.

You sound like a nice guy. Fred S is not a nice guy, and he will do everything he can to pick your pocket. Always be aware of this, and you'll figure it out someday.

My comments are partly genuine, but mostly sarcastic. Probably came off as if I'm oblivious, my point is they could be more successful than they are if they chose a different path. Cutting benefits to fund debt based stock buybacks, are going to literally drive this company into the ground.

I've said it before and I'll say it again capital gains need to be taxed as income to stem this craziness.

 

[MrFedEx]

My comments are partly genuine, but mostly sarcastic. Probably came off as if I'm oblivious, my point is they could be more successful than they are if they chose a different path. Cutting benefits to fund debt based stock buybacks, are going to literally drive this company into the ground.

I've said it before and I'll say it again capital gains need to be taxed as income to stem this craziness.

OK. I wish everyone would realize that the pay progression is a 10-step program, not a 10-year program. FedEx isn't doing you or anyone else any big favor. Without Ground, FedEx Express would be out of business, and it should be obvious that our system is set-up to favor the aristocracy, not the working man/woman.

 

[Code 82 Approved]

I just plan to die in the Ground truck, I won't need a retirement package. Hopefully I can bring it to a stop before my heart attack.

 

[Cactus]

OK. I wish everyone would realize that the pay progression is a 10-step program, not a 10-year program. FedEx isn't doing you or anyone else any big favor. Without Ground, FedEx Express would be out of business.

That's because Express has been so poorly managed by the predatory upper management for over the last 20 years. That 10 step program might as well be a 100 year program. Lots of midrangers and newbies especially will never get to the top since the carrot moves further away all the time.

I just plan to die in the Ground truck, I won't need a retirement package. Hopefully I can bring it to a stop before my heart attack.

And Fred wouldn't lose a wink of sleep even if this happened to every driver.

 

[59 Dano]

Henry ford, had the right idea to pay his employees more than market level, because he could expect more in return, a win win situation. No one wants to lose a good paying job, they could be proud of.

Minor nitpick: Henry Ford raised the employees' pay to stop the heavy turnover that was slowing down production and costing him a fortune in training costs. He spun the pay increase into a major PR bonanza that painted him as an altruist of the highest order, which was a load of crap.

 

[Cactus]

Minor nitpick: Henry Ford raised the employees' pay to stop the heavy turnover that was slowing down production and costing him a fortune in training costs. He spun the pay increase into a major PR bonanza that painted him as an altruist of the highest order, which was a load of crap.

Sure.

Then why doesn't Fred do the same thing?

 

[59 Dano]

Slowdriver I am happy to hear that you are experiencing something in the way of improved compensation but not to burst your buuble take a look at the Q2 operating results for the entire company that were released last week. You will see that Xpress volume was down and it's barely paying it's bills.

Express volume is up and its operating margin is in excess of 9%.

 

[59 Dano]

Sure.

Then why doesn't Fred do the same thing?

Fred isn't facing the same obstacle(s) as Henry.

 

[slowdriver]

Fred isn't facing the same obstacle(s) as Henry.

I was under the impression the step pay scale was to reduce turnover?

 

[Purple no more]

After the years that I spent with the Company, watching the downward spiral and hoping that it would change, I was sad that I was forced by the short vision of Memphis to make the decision to retire. I found a new, up and coming company that reminded me of the early days of FedEx when Employees were valued. I don't hold any hard feelings towards the Company, I wish them the best. But I feel unless there is a major shift in attitude, which I don't see happening FedEx is going to go the way of the US Postal Service. Good luck to everyone trying to sweat it out.

 

[dex 84]

Slowdriver I am happy to hear that you are experiencing something in the way of improved compensation but not to burst your buuble take a look at the Q2 operating results for the entire company that were released last week. You will see that Xpress volume was down and it's barely paying it's bills. On the other side Ground volume was up 9%. It's revenue contributuion was 31% of the corporations total revenues. However 84% of the corporations total profits came courtesy of Ground 31% revenue contribution, It is not a relection on you personally but these are the facts. You talk about a 401K plan,well if you have Fedex stock in the fund, keep this in mind ,if it wasn't for Gound istead of a $150 stock it would be a $60 stock

I don't think it's fair to just subtract Ground from the whole if you're talking about a hypothetical situation where Ground didn't exist. You have to also take into account the extra freight Express would have without Ground cannibalizing their business. An Express without the existence of Ground would be a more profitable company than it is today.

 

[dex 84]

Henry Ford:

It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.

A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.

There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.

 

[59 Dano]

I was under the impression the step pay scale was to reduce turnover?

Ford was approaching a turnover rate of 400%.

 

[MrFedEx]

Henry Ford:

The original Federal Express largely followed Ford's wisdom, and was an outstanding success. Notice how our plunge into the toilet began about the same time FedEx started chipping away at pay and benefits? Not a coincidence.

Dano is somewhat right on Ford the man. Not exactly a great guy.

 

[MrFedEx]

Ford was approaching a turnover rate of 400%.

So are we.

 

[59 Dano]

Henry Ford:

Again, "He spun the pay increase into a major PR bonanza that painted him as an altruist of the highest order, which was a load of crap."

 

[dex 84]

Again, "He spun the pay increase into a major PR bonanza that painted him as an altruist of the highest order, which was a load of crap."

He could've been full of personally, but that doesn't mean that that philosophy towards business isn't a good one.

 

[59 Dano]

He could've been full of personally, but that doesn't mean that that philosophy towards business isn't a good one.

We wouldn't know because Ford, nor anyone else that I'm aware of, has ever been successful paying the highest wages possible. There's an idea floating around that an increase in wages = an increase in productivity and quality. That's true to a point. Those who really really believe in it are, coincidentally, the ones who would benefit from it and they tend to overstate how much better their performance would be.

 

[fatboy33]

Yes, what about the bump to age 62 letter we all received? I notice FedEx says it was required to make this change, but they don't say who required it. Are they required to add 2 years so they can screw us deeper, or have there been changes to ERISA or other government administrative agencies? One would think they would cite the source for the change.

So we lost our 59.5 retirement age? Our regional manager came to our station earlier in the year saying this was the first real raise where nothing was taken away from "you guys". Adding 3 years onto our retirement age is like taking away 3 years of our lives(so to speak). Now that they see they have this in their pocket, I doubt most of us will see our pensions, as the years go on. Most Americans drop dead in their 60's. That means they'll lose all they've save. I'll be changing my payout to be giving to my spouse if I die. I chose not to add her because she has her own retirement and I'd realize a higher payout. My advise to anyone 62 now, retire if you can. What's stopping them from deciding to raise the age to 70 next year? They make the rules up as they go.

 

[fatboy33]

After the years that I spent with the Company, watching the downward spiral and hoping that it would change, I was sad that I was forced by the short vision of Memphis to make the decision to retire. I found a new, up and coming company that reminded me of the early days of FedEx when Employees were valued. I don't hold any hard feelings towards the Company, I wish them the best. But I feel unless there is a major shift in attitude, which I don't see happening FedEx is going to go the way of the US Postal Service. Good luck to everyone trying to sweat it out.

You have the right ideal.