This Tuesday, April 18, 2017, photo shows a FedEx Ground sign at a warehouse in Ashland, Va. FedEx says it will give wage increases, bonuses and make a voluntary $1.5 billion contribution to its pension plan following recent tax reform legislation. The company will also invest $1.5 billion to expand its FedEx Express facility in Indianapolis over the next seven years. (AP Photo/Steve Helber)FedEx Corp., announced Friday it will put $3.2 billion toward employee wage increases and other investments after the tax overhaul adopted by Congress last year cut the company's taxes and is expected to spur more deliveries this year.
The Memphis-based shipping giant said it intends to increase employee compensation this year by more than $200 million, about two-thirds of which will go to hourly employees by moving planned pay increases up by six months. 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."
FedEx has about 400,000 employees around the world, including more than 400 in the Chattanooga area at local distribution facilities and delivery operations.
FedEx said it also will invest $1.5 billion into expanding its hub in Indianapolis over the next seven years, as well as modernizing its Memphis hub. The 2 million-square-foot Indianapolis location employs about 700 full-time and 3,000 part-time workers, The Indianapolis Star reported.
FedEx is one of a number of companies in recent weeks to announce reinvestment as a result of the tax overhaul, including Apple, Walmart, AT&T and First Tennessee Bank.
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.