Citing modest improvement in the economy and shipping volumes, Federal Express will resume its matches to employees’ 401(k) plans and resume merit pay increases up to 2%, starting Jan. 1.

However, the 401(k) match will only be half of what it was before the suspension was made last December, and higher-level executives will still be subject to the 5% pay cuts that went into effect a year ago. FedEx suspended 401(k) matches and pay raises to save $800 million a year.

FedEx recently projected that daily package volume will reach 13 million on Dec. 14, up 8% from 12 million a year ago.

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