Planning to Retire

FedEx Eliminates 401(k) Match for Employees

By Emily Brandon

Posted: December 18, 2008

FedEx today joined Motorola, Kodak, and General Motors in suspending its 401(k) match for employees. The employer contributions will stop flowing into employee retirement accounts on February 1 for a minimum of one year.

“We hope to reinstate the company match in 2010, depending upon business and global economic conditions,” writes FedEx CEO Frederick Smith on his company blog.

Other cuts announced today were a 5 percent salary decrease for employees, a 7.5 to 10 percent pay cut for senior FedEx executives, and a 20 percent salary reduction for Smith.

“Our financial performance is increasingly being challenged by some of the worst economic conditions in the company’s 35-year operating history,” says Smith in a statement. “With the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business, and minimize the loss of jobs.”

FedEx today reported earnings of $1.58 per diluted share for the second quarter, which ended November 30, up from $1.54 a year ago.

just perform less

as they cut our pay if we have solidarity we just cut our performance

frank cooper of VA @ May 31, 2009 19:26:39 PM

401k

I've been a fedex employee for 10yrs now and I have seen numerous changes in our company. If money is the issue, why do we as a company spend so much money on advertising? isnt that what we as employees are for? Nascar, golf, football, basketball, etc- do we really need to spend all this money when you have the best advertisement (us) the employee? just think of the healthcare, raises and bonus incentives that could be used with all this wasteful spending

danny swiger of PA @ Feb 19, 2009 20:49:53 PM

Don't kid yourself

Fred Smith was an amazing man in his day. He and the people he places in charge each day will do anything to keep FedEx going including screwing you, dear loyal fed ex employee. It is cute that you are so adamantly standing beside your man. Sacrifices are indeed eminent, for all businesses big and small. I assure you that the monies will still be placed in the proper pockets.

Years ago the long timers who brought Federal Express to Memphis from a little hangar in Little Rock and stuck with loyalty like you to the man that held their children that were born as their wives visited the offices were forced out of the company that they considered family. Since then, they have struggled as the 55 year old men and women try to find work that is comparable. They have the work ethic and integrity that the younger generation has no concept of. None.

Laura has a strong point. We have watched as one small business after another compromises its morals and ethics for the almighty dollar. I encourage everyone however to look where their money is spent. Big businesses boom because they are bullies. They have buying power that we give them. The small businesses who treat their clients as people, making decisions based on logic instead of "policies" and somehow find a way to make money have my respect. Hopefully, they won't sell out. Hopefully, we won't either.

JB of TN @ Jan 07, 2009 15:31:13 PM

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Planning to Retire

Planning to Retire

Reporter Emily Brandon tells you how to get ready financially for retirement and to make your golden years the best they can be.

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