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UPS vs. FedEx: Which Employer Pays Best?

By Lydia Dishman , Posted Jun 2nd 2011 @ 7:15AM

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FedEx vs. UPSDespite the fact that gas is nudging close to $4 per gallon, the delivery industry is still going strong. In fact, according to the Bureau of Labor Statistics, delivery and other truck drivers make up one of the largest occupational groups in the U.S., holding 3.2 million jobs. Overall, job opportunities continue to be favorable. How can you snag a delivery gig and which company stands out as the top employer?

Two major players in the delivery business are UPS and FedEx. UPS was ranked No. 43 on Fortune's 2010 list of 500 largest corporations. Its competitor, FedEx, landed 17 spots down at No. 60, falling from 59 the year before. UPS is working hard to stay ahead, investing in improvements to its largest air hub, in Louisville, Ky., despite financial losses during the recession. DHL pulled its U.S. operations last year, and both FedEx and UPS want a share of that market.

Both companies seem healthy. Which one pays their employees better and has a company culture that would suit you? Here's a look at median annual salary ranges for some of the most common jobs at UPS and FedEx, according online salary database, PayScale.com, as well as some facts about benefits and employee mix.




1. Account Executive
FedEx Avg. Annual Salary: $73,729

UPS Avg. Annual Salary: $67,198




2. Courier / Messenger
FedEx Avg. Annual Salary: $42,926

UPS Avg. Annual Salary: $48,153




3. Customer Service Representative
FedEx Avg. Annual Salary: $34,443

UPS Avg. Annual Salary: $31,625




4. Dispatcher
FedEx Avg. Annual Salary: $53,201

UPS Avg. Annual Salary: $44,942




5. Loader & Unloader
FedEx Avg. Annual Salary: $26,858

UPS Avg. Annual Salary: $33,780




6. Package Handler
FedEx Avg. Annual Salary: $24,800

UPS Avg. Annual Salary: $22,637




7. Pilot
FedEx Avg. Annual Salary: $194,000

UPS Avg. Annual Salary: $182,000




8. Truck Driver - Light or Delivery Services
FedEx Avg. Annual Salary: $38,465

UPS Avg. Annual Salary: $58,653




Job for job, FedEx offers somewhat higher wages. And, PayScale's data shows that the other thing this Memphis, Tenn.-based carrier provides is a better vacation package. Even if you've worked at FedEx for less than a year, you are still eligible for 2.5 weeks of time off. UPS employees do not get over two weeks of vacation until they are employed between 1-4 years.

UPS, though, is more generous with bonuses. Truck drivers can earn nearly $1,000 per year in bonus money, compared to just $750 at FedEx. In addition, senior program analysts stand to make $1,000 more per year wearing brown.

More women work at FedEx, which counts 26 percent of its workforce as female, as opposed to only 22 percent at UPS.

Headquartered in Louisville, UPS branch offices are found in such major cities as Atlanta, Chicago, Houston and New York. Most of FedEx staff work in Memphis and the carrier's branch offices are in Dallas and Houston, Collierville, Tenn., Los Angeles and Orlando, Fla.

On the whole, UPS employees count 55 percent of their co-workers as being "proactive problem solvers." FedEx splits its force pretty evenly between those problem solvers and "overachievers," with 35 and 33 percent, respectively. Which team would you rather be on?

Next: Target vs. Walmart -- Which One Is a Better Place to Work?




Source: Salary and career data is provided by online salary database PayScale.com. The salary ranges shown are for full-time employees with any level of experience and include any bonuses, commissions or profit-sharing.

Filed under: Industry Research

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Andrew Kairis

also ups vaca is 1 additional week every 5 years ending at 6 weeks per year. Though I think after 1 year you do get a second week.

April 09 2012 at 1:10 AM Report abuse rate up rate down Reply
Andrew Kairis

Honestly in my 8 years at ups 6 in management, I've never heard of any job called "courier" or "messenger" So I'd love to know exactly what job that salary data was taken from. Also why isn't Feeder driver (Big rig driver) listed here? I would think that is a pretty big job segment also. (Though one very hard to get at UPS without 10+ years in the company, and not easy until you have 20+ under your belt)

That being said, package car drivers (Brown trucks) can change alot, for at while it was a 7 year wait, but back in 2005 my hub (large processing center) had a slew of retirements and the wait list got down to people who had only worked for UPS for 2 years.

Most package car drivers have between 175 and 225 stops per 8 hour day. So yeah they are pretty busy though some I have spoken with have said they still manage a route that supposed to take 8 hours in 6 or 7 when they really try-- but still get paid for the 8 hours (That is the bonus spoken of by other posters).

Please explain some of these job classifications. Also why not include management? I've heard UPS's Full time management turnover is incredibly low, and I've only ever seen one full time supervisor quit or get fired (he quit, never seen one fired) in the whole time I have been there.

April 09 2012 at 1:07 AM Report abuse +1 rate up rate down Reply
Andrew Kairis

UPS counts loader/unloaders as package handlers... if Fedex isn't counting them as such... what exactly do those categorised as package handlers do?

Most UPS people who are package handlers and NOT loaders/unloaders make 1 dollar per hour MORE than the loaders/unloaders.

For pilots and account execs ok I can see it being apples to apples but on these two job classifications there needs to be clarification before a statement should be made.

Also I don't know if Fedex calls those who drive the delivery truck "couriers" or what but I know at UPS they are "Service Providers"

I know the top rate which every Service Provider is paid after 2.5years yields 60K a year, and the tractor trailer drivers usually clear 100K a year

April 09 2012 at 12:52 AM Report abuse +1 rate up rate down Reply
Chris

What's the difference between a courier and a driver?

September 23 2011 at 10:32 PM Report abuse rate up rate down Reply
waygro29

....UPS is a company that got to big for its own good...UPS can not handle thier work, so what they do is load the drivers up with excess stops and have them stay out untill 9pm or later....And the next day the driver is in the office for working too slow, [never because too much work] The low level mgrs. [on car sup] are too afraid to tell thier bosses that thier is too much work, so it will always be the drivers fault. Not a good place too work..If they did not pay well [and thank the union for that] most drivers would not stay with the UPS for long..........

June 04 2011 at 1:57 PM Report abuse -1 rate up rate down Reply
BB

UPS is based in Atlanta.

June 03 2011 at 9:30 AM Report abuse +1 rate up rate down Reply
Mike

UPS has a good compensation package for its full time employees. If it would only stop treating its employees as animals , it would be a decent place to work.

June 02 2011 at 3:29 PM Report abuse +1 rate up rate down Reply
defensearms

Either company, when they screw your package...GOOD LUCK getting any claim paid, I have seeing nothing but BS using them on my business for over 10 years. USPS Postal Service, they do pay your claims, cheaper rates and faster !!!!! Ship coast to coast Priority is 3 days...FedEx or UPS ground is 5~6 days! enough said.

June 02 2011 at 2:23 PM Report abuse -1 rate up rate down Reply
Liz

My husband has worked for UPS for 10yrs. He started out as a preloader and has been a driver for 8yrs now. I have to agree with Pete on this one Celia. You made a comment to him that he is behind the times on the pension plan that went into effect in 2008, but then you post that you are retired. I am reading off the numerous trust fund notices that we have received concerning that "new" plan. "Adopted special funding rules under the Preservation and Pension Relief Act to give the fund more time to recover from the investment losses of 2008." April 2009, Local 639 Employers Pension Fund was certified that it was in "endangered status", which required the Trustees (Teamsters) to adopt a Funding Improvement Plan to enable the Fund to meet certain funding benchmarks within a 10yr period. Which includes amendments to pension benefits earned after 4/1/10. Normal retirement age on teamster notices: age 60. It is probably 55 for UPS section. It all depends on what you do at UPS as far as benefits go, whether or not you fall under UPS or Teamster rule. As a part time preloader (UPS rule) my husband/family got better insurance then we have as him being a driver under the teamster plan, everything has to go through teamster health trust...very confusing. They used to cover your family, now it all depends on whether your spouse can get insurance. If it cost the spouse over something like $380 for single coverage then you can have them on yours at no charge, otherwise not, but every year it has to be certified now. Big problem now for drivers, is that they are cutting out routes and loading them up, to try to save money/make numbers look good, but are still requiring them to get done at same time. They are changing the time study on many routes to enable them to cut out that "Driver Bonus" you would get if you busted your ass and didn't take lunch to get done at an reasonable hour. Most drivers are so loaded that they never take a lunch, even though they are told that they are required to, and then if they do, they get in hot water for not getting job done according to the people who sit in the offices' preconceived schedule! Safety, Safety, they spout...but want you to get done at certain time no matter, and did you know that you can be parked, flashers on, have done everything right and a car hits you, guess who UPS/Teamsters (not the cops)will charge for the accident..the driver that's who. That's what happened to my husband and another driver was charged for having a green light, a car ran their red light and hit him, but according to UPS they should have known that was going to happen I guess...duh! Point is it has gotten worse over the years, it is no longer a "family oriented" or "employee friendly" company like it once was. My heart goes out to all the hard working drivers and their families (that never get to see them during the week)

June 02 2011 at 2:08 PM Report abuse +1 rate up rate down Reply
dragonrage2b

I work at DHL in one of their three super hubs and from what I'm told, we actually have a lower turn over rate than UPS and FedEx. Not to mention we're the best in international deliveries.

June 02 2011 at 1:49 PM Report abuse -1 rate up rate down Reply
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