Monday, December 22, 2008

In Need of Cash, More Companies Cut 401(k) Match

Companies eager to conserve cash are trimming their contributions to their workers’ 401(k) retirement plans, putting a new strain on America’s tattered safety net at the very moment when many workers are watching their accounts plummet along with the stock market.

Suspending the Match When the FedEx Corporation slimmed down its pension plan last year, it softened the blow by offering workers enriched 401(k) contributions to make up for the pension benefits some would lose. But last week, with Americans sending fewer parcels and FedEx’s revenue growth at a standstill, the company said it would suspend all of its contributions for at least a year.

“We will have to work more years and retire with less money,” said Lee Higham, a 44-year-old senior aircraft mechanic at FedEx, who has worked there for 20 years. “That’s what we are up against now.”



Anonymous said...

Merry Christmas Andy Lessin thank you for making me part time and taking my benefits away.

Anonymous said...

Nobody saw this coming???

irudedog said...

yeah. the watchdogs have seen this coming for three years now.

Jimtrucky1 said...

It is only to get worse if we do not join together. I started with FedEx Express back in 1987 when the company was still about people. Slowly it has turned into what we have today. I am now a driver with FedEx Freight. In 1995 I started the Union movement with Express in Indianapolis, Indiana. We almost convinced congress to change the law preventing express from organizing by terminal, only to have it killed in the vote by attaching it to an airline safety bill that no one would vote against. Big money at FedEx lobbied the South Carolina congressman to vote against the bill. So it was killed. We designed the round FedUP teamster stickers that were going around then.

Anonymous said...

Oh and you want us to jump ship right now and take a 10% pay cut for 5 years---that's what the union/teamsters are going to do to YRC.

What will happen after YRC cuts the 14-18,000 drivers with in the next 11months.

There was a time for the UNION--

Look at the BIG 3--See what the UNION did to them? Don't tell me it was the BIG 3 and bad managers....

I'm fine with FEDEX for right now--

Fontana Driver!!!

irudedog said...

If you had been reading this blog or other articles about yrc. You would know that the members are voting for the cuts, not the union. Why don'y you ask the fedex employees if they had a choice to vote on their future. The co. just said this is the way its going to be take it or leave it!. If you are going to blame the union, prove it! What co. has been closed because of a union ? And next time you are going to make a statement like this have the guts to put your name on what you are going to write.

irudedog said...

Andy is just a puppet for the company. He has to do what he is told to do. We have to do what we have to to do!
Be Wise And Organize!

frankiez said...

Well,well,well...The company has our best interests at heart and does everything it possibly can-that's why they're #97 of the top 100 companies to work for-to insure that we are compensated fairly.Exhaustive research is undertaken to keep us abreast-if not ahead-of the industry.
Ladies and gentlemen,YOU have the finest compensation and BONUS program in the industry,blah,blah,blah,yadda,yadda,yadda.Just ask us we'll tell you.
Please don't read the attached article-exerpted form the ANNUAL REPORT.If you do read it don't believe it.You see,we can explain....
Yeah,right.Bottom line.How much more do we have to have shoved in our faces before we see things for what they are?

frankiez said...

Here's a follow up on the previous posting by frankiez.Got this off of,as to what doesn't work anymore.
Don't think we need TEAMSTERS protection? Welcome to the 1800's.
Sales incentive program spells success!
By Foley, Peter J.
Publication: American Salesman
Date: Friday, March 1 1996

When federal deregulation of the trucking industry occurred in the 1980s, Viking Freight System Inc., headquartered in San Jose, CA, suddenly faced a fiercely competitive market. To find a way to secure a leading position in this dynamic industry, we decided it was time to re-examine every aspect
of our business. As a result of this self-evaluation, we discovered several areas where we thought some fine tuning would be useful. One of those areas was employee performance.

Specifically, we needed to give our sales professionals the tools and motivation necessary to accomplish two goals - attract quality business that is a fit geographically, as well as for the type of service required and continually provide outstanding service to all existing accounts.

We felt confident that if our sales team were to accomplish these two goals, they'd easily continue to focus on our customers. As a result, we'd continue to surpass many of our competitors. With this mission in mind, we gave birth to our highly successful career pathing and professional incentive program.

Here is the link to the rest of the story.

Sales incentive program spells success! | Company Activities & Management > Sales & Selling from

I hope this helps explain what VPEP was.

frankiez said...

...and safety standars too.
Here's a copy of an e-mail I sent to several people.
Think we don't need representation,protection a union?
Read the report and see for yourself how the EASTs treatment of people-drivers specifically-results in a huge number of accidents.
This is for you too 3floor(aka Xman).Noticed,researched not out of a,"here's what to say",manual.

Well,well,well,more benefits of utilizing the EASTs system of doing freight.
This site is generated by the U.S.Department of Transportation.
Not,"I heard from a guy whose..."Thus definitely DON'T SHOOT the MESSENGER.
I find it curious that almost ALL of the accidents are in the EASTs system.Except for Texas none in our previous market area;which,candidly,is a bit suspicious.
Yet this is what the DOT is reporting.
Anyone with information to clarify this pass it on to me.
Now,why do you suppose they have so many accidents (30 month time period)?
Could it be that they run their drivers like rented mules?
Could it be that the cost of the accidents are less than treating drivers with respect and dignity?
Don't know.I do know that I refuse to subscribe to the hurry,hurry,hurry policy of the EAST.
That's why I now drive 55mph(in California) and maximum of 65 in Arizona.
Why? Safety,safety,safety and then too they're looking for an opportunity to fire you so why risk your license and job (as sucked as it is now)to meet their obviously dangerous schedules.
Wonder if Mr. Smith/Duncan et al were aware of these facts before they implemented the infamous EAST SYSTEM
Wonder if the outbound gate in SBO being hit is an indication of things to come?
We'll never know since we don't get safety reports anymore-it's an EAST thing.