VOL. 133 | NO. 20 | Friday, January 26, 2018
FedEx to Invest $3.2B in Wages, Pension Fund, Hub Investments
By Patrick Lantrip
FedEx Corp. has announced it will invest $3.2 billion to enact three new programs in the wake of the U.S. Tax Cuts and Jobs Act, the first being to increase employee compensation by more than $200 million, about two-thirds of which will go to hourly employees.
The remainder of that $200 million will go toward performance-based increases for salaried personnel.
FedEx will also add $1.5 billion to its pension fund, the Memphis-based shipping giant announced Friday, Jan. 26.
In the third program, FedEx said will invest $1.5 billion for a major overhaul of the FedEx Express hub in Indianapolis, Indiana, over the next seven years and will announce a major modernization and enlargement program for The Memphis SuperHub later this spring.
The company will make no changes to its fiscal 2018 earnings or capital expenditure guidance as issued on Dec. 19, 2017, as a result of these actions.