Jan. 27 (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.
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 employs about 700 full-time and 3,000 part-time workers, The Indianapolis Star reported.
The company said it would invest another $1.5 billion into its pension plan “to ensure it remains one of the best funded retirement programs in the country.”
“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.