NEWS ALERT from The Wall Street Journal Dec. 18, 2008 FedEx said it was cutting nonunion workers' salaries by 5% and plans deeper cuts for CEO Frederick W. Smith and senior executives, citing "some of the worst economic conditions" in the company's history. It is also eliminating bonuses and suspending company matching for its 401(k) plan. For more information: http://wsj.com?mod=djemalertNEWS ....
Holy sh*t! If that's true, my hat is off to them. Hopefully other companies take note and follow course. If you're gonna cut the workers' pay, the execs should do it too.
I think it is great political dissent concerning exec pay is catching onto corporate America. Them voluntarily doing this is impressive.
Can't argue with that. My father has worked for them for three forevers. His employee number is way way low. I think he might have actually been the first mechanic they hired. When we talked this morning he told me "it beats looking for a job".
I thought FedEx was as busy as it ever was. It must be the small percentage of high margin corporate shipping services that they're losing out on.
Since we're in the economics section, what will this mean for deflation? As demand falls from the lower salaries, will other companies be forced to follow?
Either cut pay or fire. I am for pay cuts. Much softer. It saves the same money, keeps everyone happier, decreases rampup costs when the cycle resumes, etc. So now the fight is against time. Will the stimulus and money printing come soon enough to prevent much more of this deflationary trend.