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Saturday, January 19, 2019

FedEx Voluntary Buyouts

FedEx Starts $575 Million Worker Buyout

"...The FedEx company is offering U.S. employees four weeks of pay for every year worked as part of a cost-cutting initiative announced in December..."    

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This above article is a good example of a FedEx voluntary buyout vs. a Postal Service buyout (VSIP) based on the cash pay-out incentive alone. FedEx is offering four weeks of pay for every year worked [Example: based on $60,000/year base at 40 years] would equate to approximately $90,000 versus a USPS VSIP that is limited $25,000. Our example is based on a 26 pay period year. Please note, that in all fairness, other factors must be considered in addition to the cash offering. For example, we do not know the details relating to continuance of pension, health insurance coverage, wage comparisons, life insurance, pension COLA's, dental insurance, and how the incentive will be distributed. The Postal Service is known for offering "craft employees" less than the $25,000 limited by law and then splitting up that tiny payment over two pay-outs over a timed period. - Postal Newsgroup

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