Compensation and Benefits Compensation and benefits are vital to maintaining morale/satisfaction, encouraging organizational performance and loyalty. It also helps the organization increase internal and external equity and reduce turnover. FedEx is a leader in the U.S. airline industry and maintains high revenue growth while controlling market share. As alleged in the case, FedEx was changing the traditional pension plan to a cash balance plan due to recent accounting rule changes and employees wanted to make the pension plan more portable. Two key issues FedEx has faced related to compensation and benefits: (1) FedEx must determine the best unique account compensation plan for the combination of FedEx Express and FedEx Ground services that is in accordance with recent accounting rule changes and ( 2) FedEx must decide how to appropriately evaluate the understanding and successes of the new cash balance plan along with positive acceptance by all employees. Employees in the new cash balance plan will receive annual salary credits based on a point system and the combination of age and service can range from 5% to 8% of pay. The problem is that FedEx will limit its contribution to $500 with no inflation protection. To ensure both internal and external equity, FedEx must establish an effective compensation benefits package by conducting the following: (a) job analysis (carefully analyze and define each job within the organization), (b) job evaluation (decide which jobs are worth it on an absolute basis and relative to other jobs in the organization) and job pricing (establish rate ranges for each job category). It can be difficult for FedEx to figure out which type of compensation program offers the greatest incentive for... middle of the paper... putes. The NRLA protects the right of workers to form, join and be represented in a union; it is much more difficult for workers to organize under the RLA than under the NLRA. With this in mind, only a small segment of FedEx employees are unionized (pilots) while truck drivers, package handlers, dispatchers and other FedEx ground transportation employees are not unionized. However, in 2009, Congress passed a Federal Aviation Administration (FAA) that would have placed all FedEx Express workers, except pilots and aircraft maintenance workers, under the NLRA. FedEx implies that the provision would affect all express delivery workers except pilots and mechanics, about two-thirds of their employees. By unionizing such a large portion of the workforce, FedEx says the new law could open it to strikes and work slowdowns that would jeopardize its reliability.