FedEx Increases Employee Wages Following Tax Reform
Photo courtesy of FedEx.
FedEx will invest two-thirds of $200 million in increased compensation for hourly team members, due to the recently enacted tax reform signed by President Donald Trump.
This is part of the package delivery company’s announcement that it is committing more than $3.2 billion in overall wage increases, bonuses, pension funding and capital investment, FedEx said in release.
Hourly Employees with FedEx will receive the wage increases, bonuses and pension funding as a result of the U.S. Tax Cuts and Jobs Act, according to FedEx. Annual pay increases for 2018 will be advanced by six months to April 1. The rest will fund increases in performance-based incentive plans for salaried personnel.
“FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States,” FedEx said in a release.
Meanwhile, a voluntary contribution of $1.5 billion will be given to the FedEx pension plan, and another 1.5 billion will be invested in expanding the FedEx Express Indianapolis hub over the next seven years.
Recently, full-time employees of Emkay, Inc. received a $1,000 bonus in response to the tax reform, according to the fleet management company. Meanwhile, part-time employees of the FMC received a $500 bonus.