Does FedEx management care more about impressing Wall Street analysts than taking care of their own employees?
They might. In their most recently quarterly earnings report, FedEx made sure to brag about the $3 billion in costs they’ve managed to wring out of their network over the last two years. But as FedEx workers well know, a lot of that $3 billion came from decimating worker pension plans, cutting pay, laying off workers and suspending the 401(k) match. Now, to the delight of the Wall Street analysts, FedEx is saying that only “50% of that will come back in terms of volume-related expenses … the other 50% will be permanent reductions from our cost structure going forward.” And the analysts loved it – “Nice job on the cost side,” one of them said. “Nice margin,” said another; “obviously you’ve done a lot with costs,” another glowed.
But how much of those ‘volume-related expenses’ are going to benefit the people who bore the burden of the cost cuts in the first place? While FedEx acknowledges that the 401(k) match and suspended merit pay will be part of the returning costs, they follow up that admission with a very lukewarm timetable: “That will just depend on how well we do here through the quarter, and going into early calendar ’10, on how we manage that. But we have more work to do on the cost side, and we’re getting more out every day.” And the analyst’s response? “Good.”
But with the company saving $205 million every year on that suspended 401(k) match, how eager will they be to reinstate it? How long is FedEx going to steal from your retirement security just to enhance its profit margins and impress Wall Street right now? Maybe it’s time to ask. After all, for a worker with 15 years left until retirement, every $1 the company doesn’t put into his 401(k) this year translates into about $2.40 lost at retirement age. At least Wall Street liked it.
8 comments:
We the employees at FedEx are sick and tired of seeing our benefits taken away one by one, our skyrocketing healthcare costs, our shoddy treatment by our managers and FedEx executives.
This is our message to any FedEx Employee worker who is still on the fence about why we need to form a union with the Teamsters:
“Don’t wait until you’re on the other side of the fence to see that you need the help of a union. It will be too late for you.”
well, come Jan or Feb they may return some 401k money and a few dollars for the cost of living wage But then they will most likely start cutting hours so the real losers again are the working folks who cant get ahead. I said it before if they give you .25 cents up front they will find a way to take .12 cents back shortly after. Cut some hours, or charge more for benefits. Some fools never learn but more people are comming around to the union table.
TALK AT MY YARD SAYS IF WERE NOT TEAMSTERS BY DEC 15TH WERE DONE. I HOPE NOT BUT EVERYONE IS SAYING THE CRAP WERE GOING THRU AND THE WAITING IS TO MUCH. IF THE TEAMSTERS ARE HERE THEY NEED TO SHOW MORE OR CHANCE BEING SHUT OUT AGAIN.
There is no truth to that rumor my friend. Go back to your source. Sounds like the rap of a red shirt,upper manager or a misinformed employee.
Now that the co. has started their anti- employee (union)campaign, these kind of rumors will be on the raise.
Thanks for your question and concerns. The fight still continues!
Remember also,that this website was created three years ago to get this co. organized back then. But many employees did not want to get on board because the things that Joe and Rudy were concerned about then did not effect them personally so they turned their backs on them.
But now that everyone is getting the weenie they want the Teamster Now! There is a process to get this done right and it involves that everyone gets active. Anything from talking to your fellow employees to confronting management on their lies or rumors.
The road to success has been paved already. It's up to all of us to get active and to get this done!
You and your co-workers are the foundation of FedEx. You keep the business running – you keep it growing.
Isn’t it time you had a stronger voice in your future with FedEx?
Over the last few years, many of you have talked with us about joining the Teamsters – about joining our union so that you can get the same kind of protection, benefits, security and voice that we have delivered as U.P.S Parcel.
Everyone is negotiating a better deal right now… except you
Think about it. FedEx is out for the best deal for them. They negotiate with suppliers to get the lowest possible prices. They negotiate with customers to get the highest return they can for the services you deliver. And management negotiates with the company for rich compensation packages. Why shouldn’t you have the same right to negotiate with FedEx for the best deal for you and your family?
Right now, FedEx calls the shots. And you live with the consequences. You don’t need to look any further than what they’ve done with your pension plan for an example of the arbitrary power they wield. And they could make more cuts to your pay and benefits any time they want.
It just makes sense
A fellow Fedex Freight employee and a friend was injured on the job, After a period of time Fedex decided to yank his benefits (Health-Dental-Vision-Life ins). Said employee spoke witn an attorny and the first question he was asked was "Are you in a Union), His reply was no and the attorny said that had he and others who had the same thing happen been organized then they would not have lost their Insurance but because they're not then Fedex can and always does eliminate whatever benefits they can as a way of saving a few bucks. And it's legal.
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