Pay Raises are now Official

Discussion in 'FedEx Discussions' started by Ricochet1a, Jan 9, 2012.

  1. Ricochet1a

    Ricochet1a New Member

    Express came out late last week with it pay raise scheme for this March.

    It boils down to this, if you have less than 11 years or so in your current job classification (below $19.55 for a Courier in market level A), your pay raise will be 3%. That is it.

    If your pay is between $19.56 and $21.58 - you will get a 5% pay raise.

    If your pay is between $21.58 and top of range - you'll get a 6% raise.

    The reason Express is doing this is quite simple - the threat of unionization.

    Those in the lowest two quartiles of pay tend to be part timers or full timers who are transitioning through Express - they don't tend to agitate for pay raises and aren't a threat for unionization.

    Express was worried about the mid-range and upper pay quartile enough - worried about them signing union cards - that they kicked them a up the extra 2 or 3%.

    Given the way it works now, it is more or less de facto policy now that those in the bottom will NEVER top out. You are stuck with your current compensation level (accounting for inflation and the increasing deductions for heath insurance.

    There was a memo circulated late last week for managers to have meetings with their workgroups (particularily those with a lot of Coutiers and CSAs in the lower two pay quartiles) to have a meeting to "listen to concerns". It will be a bitch and vent session and that is it.

    If you are still at Express - in the lower half of the pay scheme (less than 11 years) and haven't signed a union representation card - you are (to put it bluntly) an absolute idiot.

    It doesn't matter what your political orientation is - if you are working for Express and haven't signed a representation card - you deserve the turd sandwich that Fred Smith is going to hand you while insisting it is chocolate mousse pie.

    I'll post more if it is relevant.
  2. Ricochet1a

    Ricochet1a New Member

    The pay rates in the previous post are the AFTER the base 3% are given to your current pay. So to get a 5% pay raise in market level A for a Courier, if your CURRENT pay is $18.98 or higher, you'll first get a 3% raise (this is the across the board raise to all wage employees). Then AFTER that, if your pay is $19.56 or higher, then you'll get the 2% "bump".

    It doesn't appear that those in job classifications below 7I (CSAs) will get anything more than the base 3% raise. My information on this is sketchy through. So it looks like those at the ramps and hubs that aren't Ramp Agents or RTDs, will get a 3% raise no matter where they are in pay progression.

    It also looks like the top and bottom of scale for each job classification will remain the same as they currently exist. This will put a bit of "distance" between new hires and those who get the raise in March.

    There has been an issue over the past few years of new hires making practically the same as those with less than 5 years, since they raised the bottom by as much as the "pay raises" were. Now there will be at least a 3% gap between those hired in after the March raises, and those currently working.
  3. Ricochet1a

    Ricochet1a New Member

    Here's the breakdown by market level for job classification 8K (DOT/Courier) for those that will "make the cut" for a 5% instead of a 3% raise. The dollar amounts are your CURRENT pay - so if your CURRENT pay is higher than the amount I list, you will get at least a 5% raise. if you are near the top already, you'll get a 6% or will top out. The actual number may be off by a penny or two, since I'm having to reverse calculate current pay from the chart that was put out.

    To get a 5% pay increase - you'll need to be making at least the listed amount. If you are below the amount listed, you will only get a 3% pay raise.

    Market B $17.88

    Market A $18.98

    Market E $19.64

    Market F $20.35

    Market H $21.01

    Market J $ 21.74

    Market L $22.86

    Again, if your pay is BELOW the listed amounts above (as a DOT Courier), you will only only receive a 3% pay raise. If they are ABOVE the amount listed you will either receive a 5% or 6% raise (depending if you are in the third or forth quartile of pay progression).
  4. Mr. 7

    Mr. 7 The monkey on the left.

    The rich get richer while the poor get poorer.
  5. olcc

    olcc Guest

    Un-freaking-believable. After a nearly $500 million quarter, another take-away.

    3% for the bottom majority is a pittance. We will make even less next year than this year when inflation and the insurance increase are factored in.
  6. vantexan

    vantexan Well-Known Member

    Well that's great, lost $1.11 when I dropped from swing to courier, and after 13 years make $17.64hr. What a bunch of BS.
  7. vantexan

    vantexan Well-Known Member

    Since I got rehired 13 years ago topped out employees have grossed on 40 hrs a week easily over $100k more than I have. And now they're getting close to a $1.30hr raise while I'll be getting about 53 cents. I really had my hopes up that they'd finally come through with better pay. Should've known better. Now if they do shift P2 over to Ground we're totally screwed.
  8. Ricochet1a

    Ricochet1a New Member

    I kind of had a feeling that you were right at the "middle"....

    Sorry you didn't make the cutoff.

    I had a typo for Market level B, the cut off is $17.98 instead of the $17.88 I typed.

    This should all be "in the open" with your managers now. It went official a day after I got the information (I held off posting over the weekend), I just wanted to wait to make sure my source was accurate - which they were.

    If you're in Market level B, you'll hit the 3rd quartile with the next go around in 2013. You'll hit $18.14 this March, and next March you'll hit $18.68 after the standard 3% raise - which will put you a few cents into the 3rd quartile and qualify you for the additional 2% bump (assuming the same system is used in 2013).

    If you are in Market Level A, you're out of luck. The magic number to qualify for the additional 2% bump this year is $18.98 as current pay. With $18.14 in March, you'll hit $18.68 in March 2013 (still too low). In March 2014, you'll hit $19.24... still too low; you need $19.56 after the standard increase to qualify for the 2% "bump".

    In March 2015, you'll be at $19.82 and qualify for the bump.... as long as the top end of the pay scale doesn't increase.

    Since I know you've stated that you only have 3 years or so left, you'll never get anything more than a 3% per year pay increase.

    I knew this was coming, but was caught off guard regarding how they were going to do it. They were tossing around the 5-6% number, but everyone that was talking to me thought that the 5-6% would be at the LOW end of the pay scale - the bottom 2 quartiles. Express isn't worried about "catching up" the bottom half of the Couriers (all part of the Master Plan), they are worried about holding off the high end Couriers, RTDs and Ramp Agents from signing union cards, so that is why the upper end is getting the 5-6% and the lower end is only getting 3%.

    For all the Kool-Aid drinkers out there, this just proves that Express doesn't give a damn about the lower end Couriers and Ramp Agents. Simple logic would've been to allocate the funds for pay raises to the BOTTOM end of the pay scale, and shrink the gap between those that are topped out and those who have less than the 10 to 12 years needed to be right at the 50% point in progression or higher. Isn't going to happen.

    Express is now raking in the cash as a result of all the cuts and changes that have been made since the economic "crisis" started in late 2008. Are those that held on through that going to get anything??? Well, those that Express fears the most that will sign union representation cards will be getting a little extra "bonus" - everyone else can munch on the turd sandwich that Fred is offering up.

    All the time I was a regular poster here, I constantly harped on one thing...


    Until and unless there is a grassroots movement within Express to do just this, the execs in Memphis will be laughing it up over what they are getting away with.

    There is a growning corporate trend (Mr. FedEx brought this up in a thread which I saw prior to writing this) about the trend to two-tiered compensation systems. Pay the "upper tier" the better compensation system to keep them happy and (in Express' case, to keep them from unionizing) and pay the "lower tier" just enough to keep a labor supply which isn't too costly to have to constantly train newhires replacing those who walk after they get tired of the turd sandwich.

    With the new system Express is about to roll out, a de facto two tiered pay system is going to go into effect. One pay raise for those who are already half way in progression, and a lower pay raise for everyone else. The gap between the top half and the bottom half will grow even more rapidly under this system.
  9. vantexan

    vantexan Well-Known Member

    OK, then those within 6% of top-out will only get up to top-out, right? And for those of us below the cut-off, in my case $17.88, if our pay goes above that amount then next year we're looking at 5% raises, assuming the same pay plan?
  10. Ricochet1a

    Ricochet1a New Member

    All raises are subject to "top-out". The current ranges are NOT being changed for 2012. So someone that is already topped out right now won't get a penny in pay raise, according to the documentation I have infront of me.

    The qualifier for the 6% pay increase "not to exceed the range maximum" - in other words, can't go above topout.

    If you are in Market Level A and making $18.98 or higher RIGHT NOW, you will get what ends up to be a 5% raise (or 6% if you are in the top quartile which is defined as making $20.95 right now).

    If you are in Market Level B and are making $17.98 or higher RIGHT NOW, you will get 5%, you will get 6% if you are at $19.94 RIGHT NOW or higher.

    Under no circumstances can a pay raise put someone over top out for a particular Market Level.
  11. vantexan

    vantexan Well-Known Member

    Thanks for the clarification, we were both posting at about the same time. So are they planning to freeze top-out again like they did in the 90's?
  12. vantexan

    vantexan Well-Known Member

    Oops, was typing while you posted again. Thanks again, know some topped out couriers who'll be unhappy.
  13. Ricochet1a

    Ricochet1a New Member

    That is what it is looking like. It looks like top out for Market Level A is going to be $23.59 (not sure what it is now - been out for over a year now). Top out for B is looking like $22.57.

    To me (from distant memory) it does look like the upper end may be getting moved up a bit, but I'm not certain.

    I am certain the starting pay for a DOT Courier (job 8K pay scale) ISN'T moving up from what it is currently. They don't want new hires making as much as someone that has been with the company for 3-4 years.
  14. Ricochet1a

    Ricochet1a New Member

    If $22.90 is the current top out in Market A (or $21.91 in B) then the top of range IS being moved up by 3%.

    I seem to remember top out for A was just under $23 when I left, so I'm thinking that the top of range is being moved up 3%.

    Everything I have regarding the pay increases shows the "new pay" to define the quartiles, NOT current January 2012 pay.

    I know from reading through it, that there is going to be a lot of questions, and most people will be at a loss to explain why the system is designed the way it is. Again, the rationale isn't fairness, it is holding off a mass union card signing. The "junior" Couriers are being tossed under the bus (along with a sandwich from Fred).
  15. vantexan

    vantexan Well-Known Member

    I think B top-out is currently about $22.00. The problem with this whole system is that the 3% raises will at best only keep up with inflation. And after about 10 years or so the increase to 5% makes you think you are doing better, but sooner or later you'll hit the top-out ceiling and then watch your purchasing power erode with no raises. Would've been better to bring us up to top-out after a reasonable time and then have cost of living adjustments tied to the inflation rate. But then they wouldn't be screwing us and that's half the fun of being boss.
  16. whenIgetthere

    whenIgetthere Well-Known Member

    Just means people with eleven years who have relocated get screwed. Got screwed in the process of relocating and now only 3%. Pure BS. FO Fred!
  17. Rhoderunner

    Rhoderunner Active Member

    Big negative on that. 3% general raise INCLUDES those at top of range. Effective March 5 range maximums increase 3% to reflect this raise.
  18. XFILED

    XFILED Member

  19. XFILED

    XFILED Member

  20. Ricochet1a

    Ricochet1a New Member

    Look at post #14