The FedEx Two-Tier Wage System

[MrFedEx]

Much has been made of last years UAW contract which established what is essentially a two-tiered wage system. Senior employees keep the old much higher wage, and new hires work for about half that amount, performing exactly the same job.

With the current 22-year wage topout at Express, Fred already has it in place, and has now for quite a few years. Think about it. A new hire comes in at about $15-$16 per hour, depending on market level, and an topped-out courier is somewhere in the mid 20's, which varies according to the market level as well. Add-in the fact that the senior courier had the Traditional Pension Plan for most of their career, and you've got a wage and benefit disparity that probably averages around 40%. What a deal...for Fred.

Fred knows that most of the couriers walking in the door today will walk right back out in less than 5 years because the job sucks and there is absolutely no future in it. That means that few, if any, of the new hires will ever stay long enough to reach top scale.

So there you have it. A defacto two-tiered wage system that greatly benefits FedEx and totally screws the Express employee. With the new review system the only incentives to do a good job are your personal pride and the fear they beat you over the head with every day that failing to make numbers equals termination.

FedEx really does suck. It is a lousy company with piss-poor management and increasingly bad customer service. WalMart is the benchmark, and Fred is hitting the target. We have become the working poor, which is exactly Fred's plan. Nice guy.

 

[55+]

What new review system? I thought reviews were gone..btw..haven't heard anything about a raise this year although it shows we're due March 5th..Anybody heard anything?

 

[MrFedEx]

What new review system? I thought reviews were gone..btw..haven't heard anything about a raise this year although it shows we're due March 5th..Anybody heard anything?

The new review "system" is no review at all.

 

[Mr Shifter]

Lol @ the new review system being no review at all. Workers walking on egg shells and busting your hump is the American dream. (For the shareholders that is)

 

[vantexan]

...With the current 22-year wage topout at Express, Fred already has it in place, and has now for quite a few years. Think about it. A new hire comes in at about $15-$16 per hour, depending on market level, and an topped-out courier is somewhere in the mid 20's, which varies according to the market level as well. Add-in the fact that the senior courier had the Traditional Pension Plan for most of their career, and you've got a wage and benefit disparity that probably averages around 40%. What a deal...So there you have it. A defacto two-tiered wage system that greatly benefits FedEx and totally screws the Express employee.....

B payscale starts in the mid-$14's and tops out at about $22. You'd think the lowest payscale would mean low local costs but there are plenty of expensive places on the B payscale. If it's a desirable area where people want to live they'll take any available job and FedEx exploits that(what a shock!)

And I truly wish it were 22 years. As in that would be a huge improvement. If we got a full raise annually based on the current raise scheme we could easily work 40 years before catching top-out. And that's if we got a full raise every year! That's why I expect our new raise system in March will at least look considerably better on paper, but most likely will be more smoke and mirrors. They have a huge PR problem with current pay system. Anyone who has asked questions knows UPS is a much better deal. So yeah, we'll probably top out faster with the new scheme, but watch out for what comes to pay for that raise. In the end we won't be much better off.

Another two-tier problem: mid-range employees make considerably less, but have to pay the same for healthcare. Already affects me. Doctor wanted to schedule an annual diabetes eye exam. Costs $500, I have a $1000 deductible, I said no. I'll have to do without.

 

[MrFedEx]

B payscale starts in the mid-$14's and tops out at about $22. You'd think the lowest payscale would mean low local costs but there are plenty of expensive places on the B payscale. If it's a desirable area where people want to live they'll take any available job and FedEx exploits that(what a shock!)

And I truly wish it were 22 years. As in that would be a huge improvement. If we got a full raise annually based on the current raise scheme we could easily work 40 years before catching top-out. And that's if we got a full raise every year! That's why I expect our new raise system in March will at least look considerably better on paper, but most likely will be more smoke and mirrors. They have a huge PR problem with current pay system. Anyone who has asked questions knows UPS is a much better deal. So yeah, we'll probably top out faster with the new scheme, but watch out for what comes to pay for that raise. In the end we won't be much better off.

Another two-tier problem: mid-range employees make considerably less, but have to pay the same for healthcare. Already affects me. Doctor wanted to schedule an annual diabetes eye exam. Costs $500, I have a $1000 deductible, I said no. I'll have to do without.

Doing without the eye exam is exactly what they want. You do without and the company saves money. If you made decent money, maybe you could afford the exam. But you don't, so you can't. That sucks. "FedEx Cares".

 

[vantexan]

Doing without the eye exam is exactly what they want. You do without and the company saves money. If you made decent money, maybe you could afford the exam. But you don't, so you can't. That sucks. "FedEx Cares".

Ain't that the truth...

 

[BrownMeetPurple]

What new review system? AFAIK we still have reviews.

 

[Mr. 7]

What new review system? AFAIK we still have reviews.

See post #3

 

[SmithBarney]

There is no longer a review per se, I believe its called something like PDD performance d? discussion... the announcement regarding raises
has not yet been decided or released...
As the system is now, you will never top out not in 40 not in 400 years.. Last year top of range increased 2%, the best raise you could
get(performance based) was 1.7x% If I remember correctly.

The raises this year better be good, we have alot of senior and mid range employees who are already murmuring about doing better than last year.
Many are ready to leave.

Fred is forcing the health care prices up... you watch next year we will have another option, it will be the Govt. option (Obama care if you will)
IF a employer stops providing health care benefits, they pay steep fines/penalties. IF a employee "CHOOSES" the Govt plan, Fred is off the hook for paying penalties.

Who knows maybe they will cut health plans completely and offer 25/hr with no benefits... HAH!

 

[vantexan]

There is no longer a review per se, I believe its called something like PDD performance d? discussion... the announcement regarding raises
has not yet been decided or released...
As the system is now, you will never top out not in 40 not in 400 years.. Last year top of range increased 2%, the best raise you could
get(performance based) was 1.7x% If I remember correctly.

Actually in 2011 a mid-range employee could get 4.5% with a 7 review, but it dropped way off from there. For the first time that I recall topped out employees got raises based on review score, with a max 2.5% for a 7. As most mid-range employees make considerably less their raises ended up not being much more than topped out couriers. You're probably right, 40 years is probably optimistic. Will be interesting to see what they've come up with for March.

 

[LTFedExer]

FedEx really does suck. It is a lousy company with piss-poor management and increasingly bad customer service.

Yet you're still here.

 

[whenIgetthere]

Who knows maybe they will cut health plans completely and offer 25/hr with no benefits... HAH!

Fred would find a cheaper way than that. Where my wife works, when she was hired last year, they had a choice, salary and benefits, or straight salary plus 12% without benefits. No bennies meant no health insurance, no life insurance, no disability, no retirement, no sick pay, no vacation pay, no personal time, not even bereavement! So we opted for the bennies, with the exception of health because theirs was even worse than ours, though I didn't think that was possible. Our benefits are horrible, but they are more than 12% of our salary. So I think 25 bucks would be a pipe dream for us. Fred would offer 2 bucks an hour tops to replace bennies. Whatever he and his cronies could come up with in such a scenario to screw us would be the only option to line his deep pockets!

 

[55+]

Whatever they offer it will not be to our benefit..I'm already cringing at the spin they will put on it...

 

[MrFedEx]

Yet you're still here.

Yes I am. Someone has to convert the Kool-Aid drinkers. Can I interest you in a Coke?

 

[MrFedEx]

Whatever they offer it will not be to our benefit..I'm already cringing at the spin they will put on it...

Maybe MT3 will dress-up as a rapper and deliver it to us DJ style. You are absolutely correct that they will spin a crap sandwich into filet mignon with style and flair.