Rather than slash jobs, FedEx Corp. announced Thursday it would institute a hiring freeze and cut salaries, including that of CEO Fred Smith.
Beginning in 2009, Smith will scale back his salary by 20 percent. Other senior executives will receive a 7.5-10 percent salary cut. U.S. salaried employees will receive a 5 percent cut.
The cuts will help FedEx save more than $200 million in the remainder of fiscal year 2009 and $600 million more in fiscal 2010, helping offset what the company projects as “weak demand” for the upcoming year. The shipping giant did add a caveat to Thursday's announcement: Each of FedEx's operating companies "is evaluating other measures should business conditions further deteriorate," according to a company release.

Fed Ex Freight East cut 280 employees (mostly drivers) effective the 19th of December. They did that the week before they announced the pay cuts. We can only hope Fred is able to keep his lights and heat on through the winter.....

Originally Posted by KeithT1967

http://www.reuters.com/article/newsO...4BI5ZZ20081219

FedEx delivers ominous new twist with benefit cuts

Fri Dec 19, 2008 4:26pm EST




19 Dec 2008





By James B. Kelleher - Analysis
CHICAGO (Reuters) - Federal Express Corp's decision this week to force its salaried workers to take at least a 5 percent pay cut and to suspend its 401(k) match isn't just bad news for the shipping giant's employees.
Experts say the takebacks are an ominous sign of things to come at many other U.S. companies as businesses -- even healthy ones like FedEx -- adopt defensive corporate crouches in response to the worst economic downturn in decades.




I'm not a fan of unions by any means but its crap like what Fed-Ex is pulling that creates a need for unions. I wonder if "salaried workers" includes upper level Execs. I'm doubting Fed-Ex is hurting at all and suspect they are simply using this economy as a cover.

Whoa! If the company i work for (swift) starts to give pay cuts I would quick trucking all together.

Working for Swift is humiliation enough. I'm sure you don't need a pay cut on top of that to further erode your self image.

someone has an inflated nether-regions member for Swift

Originally Posted by xxpigxx

someone has an inflated nether-regions member for Swift

HUH???????