FedEx Investing $3.2 Billion in Bonuses, Pay Raises, Benefits & New Jobs
FedEx joins the growing list of companies who are celebrating the GOP Tax Cuts and Jobs Act by sharing the profits with employees, and investing in America. Today, FedEx announced that it will invest over $3.2 billion in bonuses, wage increases, employee benefits, and new jobs.
The official announcement states that FedEx will:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx attributes its ability to invest in its employees with the passage of President Trump’s Tax Cuts and Jobs Act, saying:
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States.
Of course, this is part of a broader pattern. Starbucks, for example, is giving out some $250 million in wage hikes and bonuses. And just yesterday, Home Depot announced that it will award employees up to $1,000 in “tax reform bonuses”. This is all good news for American workers.