One company gets it right

[bornwithnoname]

Today FedEx announced that it is cutting salaries in an effort to reduce expenses.

While other companies are losing millions of dollars and are still giving bonus to executives that don't deserve them, Fred Smith (FedEx CEO) announced that he, all the executive officers, and all salaried employees will take a pay cut. Fred Smith will take 20% cut, the officers will take 7.5 to 10% and every one else will take a 5% cut. There will also be no bonuses for any salaried employees.

Its refreshing that in this time of economic crisis some companies aren't begging for bailouts or giving money to execs for gross incompetence.

[Skiz]

When your stock goes from $126/share down to $55/share, you make some changes. That really sucks for those employees who counted on a steady paycheck and dividends as income.

UPS hasn't taken near the hit that FedEx has in the market, so we haven't heard of any future amendments to pay or bonuses.

[peat moss]

While the plicks drive away in their Lexus or BMW , and the salaried staff wait for the bus .
I understand the post bornwith , but what are the grunts getting ? No turkey for you this year Little Tim ,and by the way the Xmas party is canceled .

[Barbarossa]

When your stock goes from $126/share down to $55/share, you make some changes. That really sucks for those employees who counted on a steady paycheck and dividends as income.

I'm sure they'd prefer to take a temporary 5% cut than to be out of a job altogether

[bigboab]

Only cut the management wages. They are the ones that have failed to keep up with the economic situation. Why should the workers suffer?

I think it is time for a revolution. Person the barricades.

[Skiz]

When your stock goes from $126/share down to $55/share, you make some changes. That really sucks for those employees who counted on a steady paycheck and dividends as income.

I'm sure they'd prefer to take a temporary 5% cut than to be out of a job altogether

Agreed. And 5% is not much at that. It's likely they are just forgoing (spelling?) their raise this year when it all boils down.

[Skiz]

Only cut the management wages. They are the ones that have failed to keep up with the economic situation. Why should the workers suffer?

I think it is time for a revolution. Person the barricades.

How would that be fair? 95% of management has little or no bearing on decisions that would have been catalysts in the way the business was directed.

I'm in management at UPS and would be livid if only management salaries were cut. We're overworked and underpaid as is, and the decisions I make on a daily basis are not ones that could counter the "economic situation".

It would be one thing to cut all wages a certain percent, but to say that management dropped the ball and is going to take a salary cut would be a slap in the face, and I'd be the first one to walk out the door.

[devilsadvocate]

I'm not up to date on the final plan but GM was going to have the waged workers claim unemployment for two weeks and still pay the salaried staff. So fedex management seem to be taking the "buck stops here" approach. Good for them.

Just saw on the news that Bush is making the auto bailout loan so don't know if the cut will happen anyway.

[bigboab]

Only cut the management wages. They are the ones that have failed to keep up with the economic situation. Why should the workers suffer?

I think it is time for a revolution. Person the barricades.

How would that be fair? 95% of management has little or no bearing on decisions that would have been catalysts in the way the business was directed.

I'm in management at UPS and would be livid if only management salaries were cut. We're overworked and underpaid as is, and the decisions I make on a daily basis are not ones that could counter the "economic situation".

It would be one thing to cut all wages a certain percent, but to say that management dropped the ball and is going to take a salary cut would be a slap in the face, and I'd be the first one to walk out the door.

I should have said 'Board Of Directors'. All the rest are just minions. They will realise that when it comes to redundancies.

[bornwithnoname]

Only cut the management wages. They are the ones that have failed to keep up with the economic situation. Why should the workers suffer?

I think it is time for a revolution. Person the barricades.

How would that be fair? 95% of management has little or no bearing on decisions that would have been catalysts in the way the business was directed.

I'm in management at UPS and would be livid if only management salaries were cut. We're overworked and underpaid as is, and the decisions I make on a daily basis are not ones that could counter the "economic situation".

It would be one thing to cut all wages a certain percent, but to say that management dropped the ball and is going to take a salary cut would be a slap in the face, and I'd be the first one to walk out the door.

You work for THEM. Its not going to boil down to no raises this year. Its 5% off the top of the salary for most employees and no raises I would guess for 18 months.