Advertisement

FedEx credits tax plan for $3.2B in wage increase, investments

By
Danielle Haynes
FedEx said that it will give annual compensation increases to hourly employees six months sooner than previously planned. File Photo by David Tulis/UPI
FedEx said that it will give annual compensation increases to hourly employees six months sooner than previously planned. File Photo by David Tulis/UPI | License Photo

Jan. 26 (UPI) -- FedEx Corporation announced Friday it's putting $3.2 billion toward employee wage increases and other investments, a move the delivery company said was made by possible by last year's tax overhaul.

FedEx said it expects the Tax Cuts and Jobs Act will increase the country's GDP and overall investment in the United States. That said, it intends to increase employee compensation by more than $200 million, about two-thirds of which will go to hourly employees by moving annual pay increases up by six months.

Advertisement

FedEx also is investing $1.5 billion into expanding its hub in Indianapolis over the next seven years., as well as modernizing its Memphis, Tenn., hub. The 2 million-square-foot Indianapolis location employees about 700 full-time and 3,000 part-time workers, The Indianapolis Star reported.

The company said its would invest another $1.5 billion into its pension plan "to ensure it remains one of the best funded retirement programs in the country."

FedEx is one of a number of companies in recent weeks to announce reinvestment as a result of the tax overhaul, including Disney, Apple, Walmart and AT&T.

Advertisement

It's the sort of investment President Donald Trump touted Friday during a speech at the World Economic Forum in Davos, Switzerland.

"The world is witnessing the resurgence of a strong and prosperous America ... there has never been a better time to hire, to build, to invest and to grow in the United States," he said.

Latest Headlines