|
FedEx to pay $20M bonus
|
 |
August 21, 1997: 2:37 p.m. ET
Company rewards employees, announces return to normal services
|
NEW YORK (CNNfn) - Federal Express Corp. will reward nearly 90,000 of its U.S. operations employees with a $20 million Special Appreciation Bonus in recognition of their efforts during the UPS strike. The company also said it will resume services that had been suspended during the strike.
The bonus, to be distributed in mid-September, will equal 10 percent of eligible pay, including overtime, for the period of July 27 to August 23. The bonus will be paid to all permanent U.S. hourly customer-contact and package-handling employees, operations managers and the salaried employees who report to them.
"The last three weeks have been the best example in recent memory of why our People-Service-Profit philosophy sets FedEx apart and why it's the cornerstone of our success," said Frederick W. Smith, FedEx chairman, president and chief executive officer.
"It is remarkable, but not surprising, that the UPS strike's unprecedented impact on this company brought out the best in our employees," he said.
FedEx also said it again will award cash profit sharing distributions in December equal to 10 percent of the company's pre-tax profits.
The company also said that services that had been suspended as a result of the UPS strike will be restored by Friday, August 22. In locations where the Teamsters and UPS have not resolved differences, such as Chicago, service adjustments will be made to handle the higher number of packages.
Some of the services that will be restored are money-back guarantees and drop boxes at FedEx World Service Centers. Also, restrictions will cease on the number of packages customers may ship. Saturday service will resume this Saturday, August 23.
|
|
|
|
|
|
Federal Express
UPS
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
