FedEx Freight, the nation’s largest less-than-truckload carrier, will begin furloughing an undetermined number of drivers on Sunday, the FedEx Corp. unit confirmed Wednesday.
The voluntary furloughs will run until March 6, with drivers getting a guarantee to return to work, the unit confirmed.
FedEx Freight is offering drivers a $300 weekly incentive to accept a furlough. The total payments will be made when the drivers return to work, according to the FedEx (NYSE: FDX) unit.
The number of furloughs to be allowed per service center will be disclosed internally through the week. FedEx Freight said it will not publicly release any details about the furlough totals or the centers where they will be requested. The unit has said previously that not all service centers would be asked to furlough drivers.
FedEx Freight said earlier this month that it would move to voluntary furloughs in seeking to align its driver workforce with less demand for LTL services due to a slowing economy. It said at the time that the furloughs would last for 90 days and drivers agreeing to them would be called back to work. The furloughs will affect a relatively small number of drivers
Impacted workers will continue to receive health benefits and be allowed to file for unemployment benefits in their respective states of residence, the unit said. Some eligible employees will be offered permanent transfer opportunities to other markets that have hiring needs.
Other LTL carriers are considering similar measures as they rightsize their workforces to offset volume declines.
Leora Newton
I see this as a way for a lazy people to get handouts. They would get unemployment, medical and then some pocket change if they go back after their “vacation”.
JP Michaels
furlough the upper management
Peter heslin
Fed ex is a joke worked there 10 yrs ,never had a layoff ,and 300.00 a week is a joke ,most of these guys make well over 1000.00 a week ,they are just money hungry and don’t give a crap about their workers
Ken Huff
Three hundred dollars a week is a slap in the face and not getting it unless you return is a punch in the face, our economy is in big trouble and this President does not have a clue how to fix his mistakes if you support him then you are part of the problem.
Tim Wolfe
If you need any bigger sigh that Our Economy is in Serious Trouble,here you have it. I’m a O/O, every year I can remember they are looking for 1000’s of Temp help from Oct through Jan because of Christmas Volume. This year Lay offs!
Jon Wright
You idiots boasting online income – who do you think ships and delivers your crappy Chinese made products that you market. It is these people right in this article. As costs increase to move products so will the marketability to sell them. Income is being stretched by inflationary price increases of goods which are directly impacted by cost to move raw and finished materials. Our consumer economy is at dire risk of imploding. Layoffs in transportation will result in higher costs to move freight. I was able to ship pallets of product coast to coast for $400 just a year ago; now spending as much as $850 for the same service. Who do you think absorbed the extra costs? The consumer. Prices that have increased over the past 18 months will not retract to pre-inflationary times, they never do.
Rico Suave
As an almost 40 year FedEx express employee that is retired I find it totally unacceptable that FedEx Corp is only offering these employees only $300 a week when furloughed and then not paying them that money until they return to work? Just another example of the employee being just a number in today’s corporate mentality environment. FedEx Corp on the express side has offered buyouts to just management employees a couple of times since 2000 but hourly employees haven’t received similar buyout opportunities. So I guess my question would be are any of these FedEx freight employees close to retirement where they might be given the opportunity to get a nice buyout? Probably not since they are hourly and the attitude that at FedEx Corp management employees are considered “better” than hourly employee?
Stephen Webster
A number of trucking companies in ont have given notice to there higher paid drivers with more than 5 yrs experience of layoffs comming dec 16 of this year
I hear it is over a 1000 drivers that are making in that $110,000 to $130,000 a yr are being replaced by cheaper driver servicee drivers often new to trucking in ont