Excerpt from article here.
The package delivery company said it will cut pay for senior executives and freeze 401(k) contributions for a year. On Jan. 1, CEO Smith will take a 20 percent pay cut, and the pay of other top brass will fall by 7.5 percent to 10 percent.
FedEx will also implement a 5 percent pay cut for all remaining U.S. "salaried exempt" personnel, which excludes hourly workers such as couriers and package handlers. Mechanics and pilots are also excluded from this category. FedEx said it has about 36,000 salaried exempt U.S. workers.
Combined, the company expects the measures to save $200 million through the remainder of the fiscal year ending in May and $600 million in the next fiscal year.
What does this mean for us? Adam will not loose his job. His pay will not change (the guys at his level will still get their raises- cost of living & performance). They won't match what we put in his 401K- but we will take it!!!! He is likely to get all the over time he can handle since they are in a 'hiring freeze'. Thank you Dear Lord!!! How we love you.
I was impressed that the "big boss" did this. The man that took the 20% cut- this 'plan' came from him. Rather than hurt the guys who do the hard labor, the 'management' is taking the hit.
1 year ago
Great news! It's tough times for everyone it seems so hanging on to a job is so important.
ReplyDeleteThat is definitely good news. Joe's company is doing some cutting as well but thankfully it's been mostly fat trimming..i.e. no dinner dance, movie day, bonuses, landscaping, etc. But again so thankful that the guys have secure jobs. It's not looking so positive for many people.
ReplyDeleteGreat news!!!
ReplyDelete