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.
Ryan Allen
We used to use fedex weekly we had for 3 year…they could not pick up one week so called are old lol company…realized fedex has charging is 2-3 times more per pallet…told.my fedex rep…got no response so we don’t use them. It’s a shame as the drivers are nice….but thats probably why they are so slow
Joseph
They can’t give the furlough payments until the employee returns without adversely affecting the unemployment benefits. Pretty good deal considering you get to keep your medical benefits and get unemployment, then a 300 per week bonus upon return. I’d definitely make sure you get the money if they decide not to rehire for some reason.
Stacy
SO I CANT GET MY MONEY WHILE IM FURLOUGHED
IM TAKING IT AS THO IN CASE I FIND SOMETHING ELSE AND DECIDE NOT TO COME BACK I CANT GET MY LIL CHANGE..
TOP ME OFF AND WE GOOD..
JP
In order to get the $300/week at the end, the drivers have to be called back and stay at least 6 months or else they have to pay it back. They get the health benefits throughout but have to repay the cost when returning to work over a period of up to 25 weeks. And the “permanent” transfer was only to a total of 3 different terminals across the U.S. and the driver had to stay there at least a year to get the $10k or have to repay it.
Tony Miller
If the people find out that the government is lying to them about fuel prices etc. you’re gonna have a lot of angry people. So don’t be BS them.
James
Freight slowing get it…but think this is more of a FedEx cost cutting as a whole corporate problem not so much their LTL segment as an overhaul of thier costs under control. Not a state of the union indicator.
Willie Clyde Anderson
That is sad because the government allowing fuel to sky rocket and these fake brokerage firms low balling the freight, But worries about a war over seas. i was raised worry about your own backyard before some else’s
Experienced FEF employee
1. FedEx Freight slows down during the holidays because they deal mainly with products manufactured in the USA.
2. Most of the freight isn’t foreign (Chinese crap)
3. Any, and every, corporation tries to balance between employees, expenses and revenue for the single purpose of earning money for shareholders on Wall Street and senior executives. Everyone and everything will be stiffed to meet those goals.
#3 is why there are furloughs/layoffs, shortage of equipment internally, and why companies continue to cut expenses.