Express packages to ground

[59 Dano]

‘Contractor-mageddon’ unlikely at FedEx Ground heading into peak

FedEx Ground is unlikely to experience large-scale contractor defections during peak season despite dissatisfaction with the level of financial incentives to get them through the cycle.

www.freightwaves.com

By and large, the warnings about as many as 35% of the unit’s 6,000 contractors dropping out of the network by the end of the year due to financial difficulties have not become reality.

“There is zero chance of a ‘Purple Friday,’” said a source close to the situation who spoke on condition of anonymity in referring to an informal timeline set by Spencer Patton, a former FedEx Ground contractor, to ensure contractors had the wherewithal to stay afloat to provide holiday deliveries.

There were also those, however, who thought Patton was in it for himself and his myriad of businesses that sell to contractors. There were also questions over whether Patton was speaking for a critical mass of contractors. In September, TALP mailed a survey to the contractor network with the central question being if contractors had confidence in John Smith, FedEx Ground’s CEO. Of those who responded, 97% said they had no confidence in Smith. However, only 1,200 of the 6,000 contractors actually responded.

ROTFLMAO

 

[Gone fishin]

By and large, the warnings about as many as 35% of the unit’s 6,000 contractors dropping out of the network by the end of the year due to financial difficulties have not become reality.

“There is zero chance of a ‘Purple Friday,’” said a source close to the situation who spoke on condition of anonymity in referring to an informal timeline set by Spencer Patton, a former FedEx Ground contractor, to ensure contractors had the wherewithal to stay afloat to provide holiday deliveries.

There were also those, however, who thought Patton was in it for himself and his myriad of businesses that sell to contractors. There were also questions over whether Patton was speaking for a critical mass of contractors. In September, TALP mailed a survey to the contractor network with the central question being if contractors had confidence in John Smith, FedEx Ground’s CEO. Of those who responded, 97% said they had no confidence in Smith. However, only 1,200 of the 6,000 contractors actually responded.

ROTFLMAO

And the merge has begun. Sorry to the contractors , it was a decent run

 

[Mutineer]

There were also those, however, who thought Patton was in it for himself and his myriad of businesses that sell to contractors.

That was the one thing that bothered me about Patton.

There he was offering services as a "route consultant", while at the same time he's bellyaching all about the financial struggles of his own routes!

He very much reminded me of a typical, two-faced real estate agent.

 

[zeev]

The contractors won they are going to get more expensive packages courtesy of Express.

 

[59 Dano]

That was the one thing that bothered me about Patton.

There he was offering services as a "route consultant", while at the same time he's bellyaching all about the financial struggles of his own routes!

I said it in an earlier post that his goal in stirring the pot was much more for his own benefit than that of his clients. Most Ground contractors know all about him and that's why his survey only got a 20% participation rate. He bet big on his smoke and mirrors BS and lost.

 

[McFeely]

The contractors won they are going to get more expensive packages courtesy of Express.

More stops but likely not paying much better than their existing Ground stops they have now.

 

[chris45]

The district manager or whatever came to our station and said that they are getting rid of response in January, they aren't hiring new people, they aren't buying any trucks and they are going to force people to transfer to other stations. And in a few years when the lease is up our station is moving to the ground station

 

[BoxDriver]

The district manager or whatever came to our station and said that they are getting rid of response in January, they aren't hiring new people, they aren't buying any trucks and they are going to force people to transfer to other stations. And in a few years when the lease is up our station is moving to the ground station

I’m sure Gone Fishing will be here any minute now reassuring you by then the Ground system will no longer be through contractors and you have nothing to worry about.

 

[zeev]

The district manager or whatever came to our station and said that they are getting rid of response in January, they aren't hiring new people, they aren't buying any trucks and they are going to force people to transfer to other stations. And in a few years when the lease is up our station is moving to the ground station

Will move to Ground sooner if volumes dictate it and since 95% of the packages are headed that way.

 

[FdxVmx]

The district manager or whatever came to our station and said that they are getting rid of response in January, they aren't hiring new people, they aren't buying any trucks and they are going to force people to transfer to other stations. And in a few years when the lease is up our station is moving to the ground station

What area of the country are you?

 

[59 Dano]

The contractors won they are going to get more expensive packages courtesy of Express.

That would be the funniest thing in the world if true.

Think about it. Patton lost all of his alleged 250 routes because he stirred the pot a little too vigorously in an attempt to force the company's hand to give contractors something they were going to be giving them anyway.

 

[chris45]

What area of the country are you?

Chicago

 

[deadman]

The district manager or whatever came to our station and said that they are getting rid of response in January, they aren't hiring new people, they aren't buying any trucks and they are going to force people to transfer to other stations. And in a few years when the lease is up our station is moving to the ground station

you and about 100 other terminals in the first wave depending on your volume makeup 70-90% of your volume is going to ground.

 

[59 Dano]

That was the one thing that bothered me about Patton.

There he was offering services as a "route consultant", while at the same time he's bellyaching all about the financial struggles of his own routes!

He very much reminded me of a typical, two-faced real estate agent.

A month before he decided that Ground contractors were at the breaking point and the entire system was on the brink of catastrophe, being a Ground contractor was a license to print money!

Uploaded July 26, 2022

 

[MAKAVELI]

It's telling @59 Dano hasn't mumbled one word yet about ground taking Express volume.

 

[59 Dano]

It's telling @59 Dano hasn't mumbled one word yet about ground taking Express volume.

What would you like me to say about it?

 

[MAKAVELI]

What would you like me to say about it?

Anything. Why the secrecy?

 

[Mutineer]

I said it in an earlier post that his goal in stirring the pot was much more for his own benefit than that of his clients. Most Ground contractors know all about him and that's why his survey only got a 20% participation rate. He bet big on his smoke and mirrors BS and lost.

So far Patton's value is in taking a poke at a tiger, and all interested parties getting to see what happens.

The legal fallout (if any) will be interesting as well.

 

[DriveInDriveOut]

What area of the country are you?

Chicago

Thoughts and prayers.

 

[Empty Pockets]

I'm confused on a couple of things: We did get a step progression this year and not a percentage. You got a step progression too didn't you? Other question is about that driver you mentioned. How did he get his CDL before he went to school? They let him go to the DMV with a company truck to take the Class A test before he even went to FedEx's truck driving class? Someone screwed up. They normally don't make an appt with the DMV until after you're done with the class and passed. Who authorized that where you're at? I bet he got in trouble for that one (OLCC? lol). But yeah, they need to top out RTDs sooner rather than later. And RTDs need to get a step progression even if they don't do it for couriers or other positions during bad years. Why? Because RTDs can quit on a moments notice and get another job. Couriers and CSAs don't have that luxury. Because RTDs have that ability, they need to be paid more aggressively to keep them from quitting. There's a serious nationwide truck driver shortage, Express needs to pay acknowledging that fact.

Yes, I know. They continue to do the most ridiculous stuff that it does not surprise me anymore. We will call the driver Jake. Jake was a courier at a small station and got a RTD job at OLVRT. Jake spends about two weeks total out of 5 months with the driver developer and the rest of the time he is riding around with a city driver. He is very impatient and wants to go to driving school, but he keeps getting passed up on. He finds out that you can go do the road test (according to law) before you go to driving school. The Driver Developer agrees and tells the manager. They had to wait until the following week because the Driver Developer had to drive the tractor trailer to Tupelo for the road test. Jake passed, got a job with a local wood chip hauler, and quit the next week. Well, called in sick for two weeks and was fired for no call no shows. We sure did not see that one coming, LOL.

I am not sure about the step progression. I am at the top so did not move. The pay did. The step progression started in 2016 and raises were postponed to Oct. anyone hired then should be at level 5 or higher.