FedEx raises, bonuses to inject large amount of capital in Memph - WMC Action News 5 - Memphis, Tennessee

FedEx raises, bonuses to inject large amount of capital in Memphis community

(Source: WMC Action News 5 archives) (Source: WMC Action News 5 archives)

Thousands of Mid-South workers are getting a boost to their paychecks.

Friday morning FedEx announced it plans to spend $3.2 billion in wage increases, bonuses, pension funding, and capital investment, taking advantage of the lower tax rates.

Hourly workers will see pay increases by April 1, and salaried employees will see increases in performance-based incentive plans.

"What's exciting is FedEx is the largest employer with over 20,000 employees in the Mid-South area that they are potentially now going to be injecting a large amount of capital into the Memphis community," Trip Miller with Gullane Capital LLC said.

Miller said with more money in the pocket of FedEx employees, he expects to see a surge in spending, and the pay hike also could set a new standard for pay in other businesses.

"Raising the bar with FedEx leaves other businesses having to take notice which is good for potential employees around the community," he said.

The shipping company also said it would invest $1.5 billion to modernize and enlarge its Memphis SuperHub and significantly expand its hub in Indianapolis over the next seven years.

FedEx CEO Fred Smith alluded to the changes over the past month, sharing snippets of his plan and the benefit to his company and employees. That could lead to more than a billion dollars in cash flow for the business.

"I like that he is following through on what he alluded to and rewarding not only shareholders but what something looks like the Memphis community will benefit extremely as the largest employer," Miller said.

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