Exactly. Just wait til after Christmas, many people will have charged up their credit cards, when the corporations begin to cry poverty and must layoff thousands to break even. I've seen this movie back in 2005. Layoffs, free loans against their house, Stock market fails, the rich come in take their homes, tax payer bailouts for banks etc...
What's the point of being topped out if you keep getting raises? FedEx isn't that generous.
Sure you're not thinking 2008?
Well the term is misleading, the whole pay range generally moves up ~3% each year, if "topped out step 10" never moved again, all the other steps would run into it, and by the time that happens McDonalds employees might be making more...
It's why I went ahead and took my pension. They are doing that to 12-15yr employees so doubtful they're going to give raises to topped out employees. Doubtful they'll give adjustments every year to each step but will eventually adjust if needed down the road. The way they'll explain it is you get a raise every year until topped out so why would they adjust? The only reason they created this new pay plan was the turnover. If they could have stayed viable with 2% raises no doubt they would be doing that. And if topped out couriers complain no doubt they'll point out topped out made much more than midrange for many years so now they have to take care of midrange.
Not actually. In all those years they were giving midrange employees 2% did McDonald's catch us? They may give topped out a bonus, maybe not. But there will be plenty of retirees, plenty of new hires, with everyone moving along the steps. Maybe in 4-5 years, maybe longer, they'll give an adjustment to all the steps as market conditions warrant.Well the term is misleading, the whole pay range generally moves up ~3% each year, if "topped out step 10" never moved again, all the other steps would run into it, and by the time that happens McDonalds employees might be making more...
I have been topped out since the 70's and I have continued to get raises when everyone else did, except this time. If 9 steps gets raises and the 10th doesn't, eventually there will only be 1 step.
Why would step 9 get multiple raises? It's a set amount that people move up to then move on from. There seems to be an idea that FedEx will adjust every step annually to keep up with inflation PLUS you'll get your step raise. Why would they do that? You start at 1, every year get a raise until you reach 10. You are then topped out. If they give anything to topped out employees it'll most likely be a bonus like they did this year. Bonuses can be cancelled or reduced. No guarantee. Every so often they may adjust all the steps to be competitive in the marketplace. If the economy is bad doubtful they'll give bonuses or adjust steps.
They gave each step a raise before. You moved up a step PLUS got the raise the next step got. I doubt top pay will be frozen for the next 9 years while step 1 catches it. That will result in 1 step only.
The way it was paid out was different. But, topped out still got 3% of last years gross. It actually worked but better, but not by much, to be paid in 2 checks (1.5% twice)...less taxes taken out.
A raise is always better than lump sum. That way when you do get a raise, its a raise on top of last years raise.
The 9 steps won't get raises. People will just move step to step, then top out.
Back in the late 90's they had a union scare and gave raises and adjustments to topped out people. This time they gave raises and adjustments to get to a final place. From here on out until they adjust all the steps some time in the future it will be just moving to your next step annually then you are topped out. That they gave top out a bonus instead of a raise ought to tell you something. Bonuses can be taken away. There's just no way that they're going to give people step raises AND a 3% cost of living increase.
I think I'll skip 2 through 11.
Not to derail, but another scenario all together....wonder if in years down the road they will do away with the Portable Pension Plan & make everyone take lump sum or roll over? And just offer 401k. Not entirely out of the realm of possibilities.
Very few companies offer a 401K AND a pension. It could very well happen to new hires at some point.
I'm just speculating like everyone else, but I think I'm pretty close to what will happen. They made adjustments last year, but highly unlikely that'll continue.
That can be dangerous.
Try it sometime, you might live.
