(WMC-TV) – FedEx officials are releasing information to its employees regarding their eligibility for the voluntary buyouts that were announced in August.
The buyouts will be offered to employees who have worked at FedEx continuously for at least five years as of November 30, 2012. Those employees include part time workers. The majority of the buyouts will take place at FedEx Services, FedEx TechConnect, and FedEx Express.
FedEx advises employees that the buyout payment will be based on four weeks of gross base pay for every year worked of continuous service at the company, with a maximum of two years.
For example, according to CNN Money, the typical full-time FedEx employee makes $55,500 per year.
If that employee worked at FedEx for five years, he or she will get 20 weeks pay, which is a $21,346 buyout.
If that same employee has been there 26 or more years, that employee would get 104 weeks pay, totaling $111,000. See the formula by clicking here.
Information was provided to employees Tuesday to help them determine their potential lump sum payments, health care provisions, and departure dates, in order to help them make informed decisions about whether to take the buyout.
FedEx will also offer COBRA health care coverage for 18 months after the buyout and a one-time $25,000 reimbursement credit.
The agreement says employees will be paid within 60 days of their departure date.
Here is a timeline for what is expected to happen:
- Early February 2013: Remaining information on eligibility will be communicated
- February 15, 2013: All eligible employees will receive buyout packets for consideration via company e-mail. Employees will have 45 days to make a decision.
- April 1, 2013: Deadline to accept buyout.
- Early May: Employees will be notified if their agreement has been accepted. Departure dates will be provided.
According to the 15-page document e-mailed to FedEx employees Tuesday, the company does not plan to use involuntary buyouts if their financial goals are not met with this voluntary buyout.
Officers and directors were given the first chance at the voluntary buyout a few weeks ago.
If an employee accepts the buyout, they will not be eligible for employment at any FedEx company in the future.
Click here to read the full PDF sent to FedEx employees detailing the eligibility information.
FedEx released the following statement to the media Tuesday:
"The program recognizes the significant contributions and dedication of our employees and balances that against the changing business environment our company faces."
More information will be revealed to employees during an internal broadcast Wednesday.