The Memphis, Tenn.-based parcel giant’s decision to increase workforce compensation by more than $200 million, effective April 1, was fueled by the recently passed U.S. Tax Cuts and Jobs Act.
FedEx said it will increase the compensation to its workforce by more than $200 million, starting on April 1.
About two thirds of the $200 million increase will be spread across its hourly workforce, with the remainder to be included in performance-based incentive plans of salaried personnel.
The company will also make a voluntary contribution of $1.5 billion to the FedEx pension plan.
FedEx said it was able to fund these increases due to the recently enacted U.S. Tax Cuts and Jobs Act.
In addition, the company will invest about $1.5 billion to expand its express hub in Indianapolis 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 said.
The company said it has made no changes to its fiscal 2018 earnings or capital expenditure guidance as issued on Dec. 19, 2017, as a result of these actions.
FedEx to bump up wages for workers
