Friday, September 30, 2011

FedEx Gets A 1/2 Million Tax Break

FedEx Opens Ill. Distribution Center With 200 Jobs

AP Updated 3:46PM Print | Front Page | Email this story

GRAYSLAKE, Ill. (AP) – FedEx Ground has opened a new distribution center in the Chicago suburbs that the company says will employ more than 200 full- and part-time workers. The state has promised the company half a million dollars in tax breaks and other incentives.

FedEx Ground said in a news release that it opened the 214,000 square-foot distribution center in Grayslake on Thursday. FedEx Ground is the small-package ground delivery arm of Memphis, Tenn.-based FedEx Corp.

FedEx Ground says the facility is one of five distribution centers it operates in the Chicago area. Company and state officials say the center could eventually employ more than 450 workers.

Illinois Department of Commerce and Economic Opportunity say the state has pledged $500,000 in tax breaks and job training funds contingent on job creation.

Thursday, September 29, 2011

FedEx Spends $2.8 Million Lobbying in 2nd Quarter

AP Updated 3:25PM Print | Front Page | Email this story

WASHINGTON (AP) –Memphis-based FedEx Corp. spent nearly $4.9 million lobbying the federal government in the second quarter on legislation that would have made it easier for its workers to unionize, among other issues, according to a disclosure report.

That's below the more than $7 million the world's second-largest package delivery company spent in the second quarter of 2010 but above the $3.9 million it spent in the first three months of the year. The company's larger rival, Atlanta-based United Parcel Service Inc., spent about $1.1 million on lobbying in the second quarter.

In the second quarter, the company continued to lobby Congress on the FAA reauthorization bill, which will speed up replacement of radar-based air traffic control with a more advanced satellite-based system.

FedEx had been vocal in its opposition to a small section of the bill that would move its employees to a new federal classification that would have made them easier to unionize. Congress has not yet come to an agreement on the bill. Now, only the shipper's pilots are unionized.

The company also lobbied on other legislation involving airport and airway funding.

Between April and June, FedEx lobbied Congress, the Department of Transportation and the Federal Aviation Administration, according to the report filed with the House clerk's office.

Wednesday, September 28, 2011

Wall Street vs. Everybody | Common Dreams

New Board Members of FedEx Shareholders

Martin, Ramo to FedEx Board as Hyde Retires Position

Brad Martin and Joshua Cooper Ramo are the newest directors on the board of FedEx Corp.

Each was elected to the board of the Memphis-based corporation this week at the annual shareholders’ meeting.

At the same meeting, shareholders approved executive pay plans including a $1.3 million base salary for company founder and CEO Fred Smith, not including equity-based compensation and bonuses.

Martin is chairman of RBM Venture Co., an investment company. He serves on the boards of Lululemon Athletica Inc., Dillard’s Inc. and First Horizon National Corp. Martin is also the founder of The Martin Institute, a nonprofit education reform foundation.

Ramo is vice chairman of Kissinger Associates, an advisory firm, and serves on the Starbucks Corp. board.

Martin and Ramo were elected to one-year terms as J.R. “Pitt” Hyde, the founder of AutoZone Inc., announced his retirement from the board. Hyde joined the FedEx board in 1977.

Monday, September 26, 2011

Memphis Daily

CHICAGO (AP) – Fitch Ratings on Friday affirmed the debt ratings for

FedEx Corp. and its
Federal Express Corp. unit, a day after the package delivery company reported better-than-expected fiscal first-quarter results.
The ratings firm cited FedEx's ongoing financial flexibility, strong market position and manageable debt repayment schedule.
The ratings apply to roughly $1.7 billion in senior unsecured debt and a $1 billion unsecured revolving credit line. Fitch's outlook on the rating is stable.
FedEx reported net income rose 22 percent to $464 million, or $1.46 a share, in the fiscal first quarter that ended in August. That compares with a profit of $380 million, or $1.20 per share, a year earlier. Revenue rose 11 percent to $10.52 billion.
FedEx's continued focus on pricing discipline and international expansion has positioned the company to further expand profit margins and improve its credit profile while continuing to face a weak demand environment, Fitch said.
As of Aug. 31, the company had about $2 billion in cash, as well as full access to a $1 billion unsecured revolving credit facility.
FedEx projects that capital spending will rise to $4.2 billion in fiscal 2012, up from $3.4 billion in fiscal 2011.
That aside, FedEx's other near-term cash obligations remain manageable, Fitch said.
Fitch said that the biggest risk to FedEx's credit profile in the near term is the potential for another recession that sends the global economy into a slide for a year or more. Should that occur, the company could potentially see volumes across its transportation units soften, rising pressure on its profit margins and free cash flow, the firm said.
The ratings firm has FedEx's issuer default rating, senior unsecured credit facility and senior unsecured debt at "BBB," two notches above non-investment grade, or "junk" status.
Fitch has FedEx's short-term issuer default rating and commercial paper at "F2."
The ratings firm affirmed
Federal Express Corp.'s issuer default rating and senior unsecured debt at "BBB."

Thursday, September 22, 2011

FedEx Cuts Forecast, Warns of 'Sluggish Growth'

Package and parcel giant's profit rose 22 percent in June-August quarter
FedEx’s net profit rose 22 percent to $464 million in its June-August quarter, but the world’s largest air cargo carrier lowered its earnings expectations for the rest of the year, citing a slowdown in global trade.

"We expect sluggish economic growth will continue," CEO Fred Smith told analysts. FedEx, widely considered an economic bellwether, said it had a “moderate outlook” for the economy and now expects to earn $6.25 to $6.75 per share for its current fiscal year, compared with a previous estimate of $6.35 to $6.85.

The company’s net profit grew on an 11 percent gain in overall revenue to $10.5 billion. But U.S. domestic shipments at FedEx Express fell 3 percent and international express shipments fell 4 percent from the same period a year ago.

"The U.S. and global economy grew at a slower rate than we anticipated during the quarter," said Chief Financial Officer Alan B. Graf. "While FedEx Ground and FedEx Freight achieved improved operating results despite lower than expected growth, the more rapid decline in demand for FedEx Express services, particularly from Asia, outpaced our ability to reduce operating costs."

FedEx’s express unit posted a 19 percent drop in operating income, despite a 12 percent rise in revenue. The decline in volume was partly offset by a 13 percent increase in revenue per package, which included higher pricing and higher fuel charges.

FedEx’s ground transportation unit posted a 42 percent jump in operating income to $407 million. Revenue rose 16 percent to $2.3 billion. Average daily package volume grew 5 percent.

-- Contact Joseph Bonney at Follow him on Twitter @josephbonney

Sunday, September 18, 2011

What Can A Union Do For Me? Part 2

All back pay, including overtime, his bid job back, and a written apology from the TM.....That should answer any and all questions you asked but I will elaborate.

The man in question is a model employee and as straight as a grizzlies dick but that has no bearing in any of this mess. Only the facts regarding the accusations do.

This particular customer accused one of our employees of theft. Big problem. The video they provided my company with didn't prove a damn thing. My company postponed and stalled to acquire an enhanced video. Still no proof of what they were claiming. The company labor man was trying to cut a deal with the local shortly after the first attempt to stall on the enhanced video. They had made a huge mistake and he knew it.

This customer and our TM put an employee from my company through hell on speculation rather than fact. How could you think the local made my company look bad? That question completely baffles me.

Had our TM a pair of balls between his legs this problem would have never gone to a hearing for a decision. There was a day and time when something of this nature would have been taken care of in a matter of minutes rather than weeks at the expense of a mans family and health.

As it stands now I hope and pray that this employee hires an attorney and pounds the living hell out of said accusing company and our douche bag TM with a civil law suit. They both deserve what ever they get.

Saturday, September 17, 2011

What Can A Union Do For Me?

What can a Union do for me?

I would like to share another victory for our local and all Teamsters across the nation.

A little over a month ago, a co-worker was accused of theft by one of our customers. Not the theft of anything we carry for them, but the theft of personal property from their breakroom. The accusing company provided a video of the alleged crime. After our TM viewed said video this worker was terminated and escorted off the property. A call was made to our local by the TM and the business agent was informed that this video was quite damning. Our local began preparing the case.

As of Thursday the 15th of September the terminated employee was informed he will be back to work in his original position with all back pay including overtime for the month or so he was gone. A written apology from the TM will be included in the settlement.

FAA Bill Passed By The Senate

The FAA bill that the U.S. senate passed late thursday night, does not have any language in it for FedEx Express. There were two senators who would not let any Language for Express into the bill. obviously in the back pockets of uncle Freddy!

This bill has no direct effect on our current campaign to organize FEDEX FREIGHT. We are under the NLRB, National Labor Relations Board and NLRA, National Labor Relation Act, but we are not under the NRLA, National Railways Labor Act. That's why we all should have called our members of congress to include the FedEx Express Transportion.

So don't let management tell you anything different. Because we can and will organize FEDEX FREIGHT!

Wednesday, September 14, 2011

Toxic Managers

Michael Seals formerly Anaheim Driver

Toxic managers have been around for a long time; although the increase of this type of manager at FedEx Freight is relatively new. These managers are moody, incompetent, and always looking to blame others; this manager is a compulsive liar who is always charming around management. When you encounter this type of manager everything will become your fault. You are the “poor performer”; you have the “negative attitude”. In reality this a projection of the bully’s own poor performance and incompetence.
There are basically three ways to deal with toxic management; the union grievance process, civil legal action, or the third alternative is to resign. A senior management backed toxic boss cannot be changed. Your health, career, and families should not suffer. You must look at how you exist and the work environment you exist in. Look around at the environment which you work, look at the guys who were middle-aged workers that are no longer employed at FedEx; do you honestly believe you have job security and will be able to retire with a livable pension from FedEx without Union backing.

There is an organized attack on the working in America, honorable professions such as Teaching has been downsized to teaching to a test. Emergency responders (Fire fighters and Police) are being downsized and pensions eliminated after the years of faithful service.

Unlimited access to cheap labor is contributing to the decline in American culture. Yet, the Democratic process is free. A vote only cost time, energy, and critical thinking. I continue to support my former fellow FedEx workers and especially Joe Nuno.

Happy Driver Appreciation Week - FedEx Freight Drops The Ball Again!

Well another year has passed and once again Fedex Freight has forgotten , Driver Appreciation Week Sept. 11 - 17. But they have no problem giving misinformation about unions and organizing.

On behalf of our committee members through out the west. We appreciate all the hard work you do. Not just drivers, but all of the employees here at FedEx Freight.

Rudy Hernandez
Organizer at SBO

P. S. If FedEx gets a wind of this and does something for you. Tell them I said Thanks!

Friday, September 9, 2011

FedEx Considers Orders for 50 Freighters

FedEx Considers Orders for 50 Freighters Decision to buy freighers may not come for several months FedEx is mulling buying up to 50 widebody freighters from Boeing and Airbus to update its aging fleet, according to a report by Bloomberg.

Negotiations center on Airbus’s 330-200 freighter and Boeing’s 767-300 freighter,Bloomberg said, citing unnamed sources. The order may also involve the conversion of 767 passenger jets into freighters.

A final decision on the multi-billion dollar contract may not come for several months and could be delayed by a weakening economic outlook and the risk of FedEx losing U.S. Postal Service contracts. FedEx is the largest contractor to USPS,which said this week it is pushing its suppliers for $1 billion in annual savings.

-- Contact Bruce Barnard at

Tuesday, September 6, 2011

Quote Of The Week

It is essential that there should be organization of labor. This is an era of organization. Capital organizes and therefore labor must organize.

Theodore Roosevelt

Monday, September 5, 2011

Secretary Solis' "State of the American Worker"

A Brief History of Labor Day

The origins of Labor Day are more than a century old.

The first Labor Day parade in New York City was held in September 1982. Two men are credited with playing an important role not only in bringing about the parade but the holiday as well. Matthew Maguire, a machinist from Paterson, N.J., and Peter J. McGuire, a New York City carpenter who helped found the United Brotherhood of Carpenters and Joiners, are said to have suggested a holiday to honor working people in the United States. In 1887, Oregon became the first state to make Labor Day a legal holiday, and in 1894, President Grover Cleveland signed a bill making Labor Day a national holiday.

How unions help all workers

by Lawrence Mishel and Matthew Walters

Unions have a substantial impact on the compensation and work lives of both unionized and non-unionized workers. This report presents current data on unions' effect on wages, fringe benefits, total compensation, pay inequality, and workplace protections.

Some of the conclusions are:

• Unions raise wages of unionized workers by roughly 20% and raise compensation, including both wages and benefits, by about 28%.

• Unions reduce wage inequality because they raise wages more for low- and middle-wage workers than for higher-wage workers, more for blue-collar than for white-collar workers, and more for workers who do not have a college degree.

• Strong unions set a pay standard that nonunion employers follow. For example, a high school graduate whose workplace is not unionized but whose industry is 25% unionized is paid 5% more than similar workers in less unionized industries.

• The impact of unions on total nonunion wages is almost as large as the impact on total union wages.

• The most sweeping advantage for unionized workers is in fringe benefits. Unionized workers are more likely than their nonunionized counterparts to receive paid leave, are approximately 18% to 28% more likely to have employer-provided health insurance, and are 23% to 54% more likely to be in employer-provided pension plans.

• Unionized workers receive more generous health benefits than nonunionized workers. They also pay 18% lower health care deductibles and a smaller share of the costs for family coverage. In retirement, unionized workers are 24% more likely to be covered by health insurance paid for by their employer.

• Unionized workers receive better pension plans. Not only are they more likely to have a guaranteed benefit in retirement, their employers contribute 28% more toward pensions.

• Unionized workers receive 26% more vacation time and 14% more total paid leave (vacations and holidays).

Unions play a pivotal role both in securing legislated labor protections and rights such as safety and health, overtime, and family/medical leave and in enforcing those rights on the job. Because unionized workers are more informed, they are more likely to benefit from social insurance programs such as unemployment insurance and workers compensation. Unions are thus an intermediary institution that provides a necessary complement to legislated benefits and protections.