Friday, December 19, 2008

FedEx 2Q profit rises, plans to further cut costs

By SAMANTHA BOMKAMP , 12.18.08, 11:57 AM EST

FedEx Corp. on Thursday announced more broad cost cuts - including salary reductions - as deteriorating economic conditions continue to drag down demand, warning the outlook for 2009 remains murky.

Chief Executive Frederick W. Smith said the company's earnings are "increasingly being challenged by some of the worst economic conditions in the company's 35-year operating history."

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frankiez said...

Before you say,"Geez,Mr. Smith is taking a hit too",here's a portion of a Forbes article that can be read by clicking the ,"read more",of this blog.
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.
Smith's base salary last year was $1.43 million, according to a filing with the Securities and Exchange Commission. The figure does not include incentive pay, bonuses, company perks and the estimated value of stock holdings.

As I said before,"chump change ",for Mr.Smith.He'll still rake in $1,144,000.00 BASE SALARY.
I'm sure the bean counters have figured how it will be to his advantage tax wise.
I'm not envious of Mr. Smith,his idea has given employment to thousands of us.
I do resent his attitude towards me,and obviously ALL his employees.That is, in a capitalistic system how can we participate if we're making below standard wages.Or, a significant portion of our income must go to provide those things that were previously provided by the employer in their,"BENEFITS PACKAGE".Often touted by them as a reason to work for them.And we fell for it.
Now ,the pendulum,driven by corporate GREED has swung to the extreme where anything we previously enjoyed as a benefit or wage is in jeopardy of being suspended or(greedily)being taken away forever.
Yes, the economy is bad and may get worse,but Mr. Smith is taking advantage of the situation by putting into place policies that we will not see replaced when the economy rebounds.That will mean more $$$$$$ for him and less for us.
We need someone to look out for our-as it turns out-basic needs.
We can't do it individually,so we must join together in a UNION to protect what we have earned.

frankiez said...

Another thought.Understand that Mr. Smith is an ex-marine-although I'm told you are never an ,"ex",marine.
The U.S Marines motto is,"Semper Fidelis".Definition follows(one of many I discovered).
Semper Fi is Latin for "always faithful." This is the word that best known American motto U.S. Marine Corps. The use of Latin in the Marine Corps motto is bred from a completely different only symbolizes the possibilities for ordinary people to be part of a brotherhood that demands more of its members than any comparable groups in the world.
My point?WE THOUGHT WE WERE PART OF MR.SMITH'S MARINE CORPS in a sense.We were joined together-a union-for a common purpose.We dedicated our working lives to it's fulfillment.We sacrificed our,and our families time to achieve it's goals.We accepted our leaderships interpretation of the situation we were faced with and marched toward the objective unquestionably.We achieved those objectives proudly.We were the few,the proud,we were Mr. Smith's MARINES.
In light of what's happened lately at Camp Fedex Freight we're more like prisoners of war than members of an."always faithful" organization.
Well what to prisoners do when confronted with the adversity of prisoner life?They form a UNION.
That's why we need the Teamsters so we can be a part of a real,"Semper Fi", organization,not one that merely renders lip service to its meaning.
Mr. Smith,SEMPER FI.May it guide your thoughts,words and deeds.And,thank you for your service to your country.And,thank you for creating an organization that, at least for awhile, embraced the true meaning and spirit of SEMPER FI.