FedEx announces new investment plans
FedEx announced on Friday (26 January) that it is committing more than $3.2bn in wage increases, bonuses, pension funding and expanded US capital investment following the passage of the Tax Cuts and Jobs Act.
In a statement posted on its website, FedEx said it was announcing three major programmes:
- over $200m in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to 1 April from the normal October date. The remainder will fund increases in performance-based incentive plans for salaried personnel.
- a voluntary contribution of $1.5bn to the FedEx pension plan
- investing $1.5bn to expand the FedEx Express Indianapolis hub over the next seven years.
FedEx said that it believes the Tax Cuts and Jobs Act will “likely increase GDP and investment in the United States”, and added that it has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on 19 December 19 as a result of these actions.