FedEx contractor revolt?

[bbsam]

The reason those contracts are worthless is because and I've told you this before.....NOTHING"S BINDING ! There's not a single term or condition in those worthless contracts that is binding upon FXG because there's no one with the power to make them binding.

Now you said that you would be out by the first of July. Sounds to me like the buyer backed out or couldn't find a banker willing to make a deal. In the mean time friend the network. You don't have any control over that. Focus only on the little bit that you can control.

It is quickly becoming no longer a carriers market but rather a shippers market where they can get whoever they want to truck their junk for whatever they feel like paying. If one guy won't do it two or three others are there grinning like a butcher's dog.

You’re right. I did say I would be out by July. It wasn’t going to be with a sale though.

My experience has been that the old adage is true: “Negotiations begin when one party says ‘No!’.”

That’s why I believe contractors hold far more leverage right now than you believe.

That’s why I believe the company has let things get to the point where they need contractors more than contractors need them.

Most recent trend on Facebook as far as contractors? Guys selling brand new fleets and getting out. The new people are figuring it out quickly and getting out and the veterans are holding position. Doing the bare minimum.

I’m still looking to sell though. I’m half the size as last year at this point due to a very bad peak and what seems to be a company hell bent on retribution. But for now, half of what I do every day used to be my own area that I now run on contingency. That’s where the money lies right now. Propping up failing areas. The problem for the company is they can’t find people to take the failing areas. That means I’ll continue to service an area that used to be mine at a considerable premium for several months. It also means that come peak, when they still don’t have someone to take over, I’ll continue at an even higher premium or I’ll pull back to my contracted area and not have to recruit for peak.

 

[bbsam]

No companies knocking down the door. They'll just make it an all employee model like it should be.

Maybe. That’s a lengthy process and an extremely expensive one.

 

[bbsam]

Clearly you misunderstand the nature of your relationship with Fat Freddy. You think you work for YOU. You do not work for YOU. You have never worked for YOU. You work for FAT FREDDY.

Now tell me something. How much do you think you could get out of your trucks? By your own admission they're just old used rags that you've come across.

The value that you hope to someday cash of out is the contract itself. Those "millions and millions" you've repeatedly told me about. A contract over which Fat Freddy reigns supreme. After all Lord Freddy giveth and Lord Freddy taketh away He knows that this is what you're counting on. Therefore, he's not likely to move quickly if at all. It's much more likely that he will wait to see just how many do fail and simply walk off from their contract and the level of threat to the network . After all, it's his network, not yours. He's likely to first figure out how little you'll take in order to protect a cash out you're desperately counting on.

So in the end he might give you a one time only in your face contract what was that they called it? Oh "enhancement " That's right , "enhancement" . It will be insultingly low and will come with a subtraction some place else. Always has. You will be presented with a Fedex pen and the dotted line to sign on. You can take it if you want or you are free to leave on your own accord.

As I said in a previous post, I’m half the size as last year. So in a quick sale I could probably get probably $700k.

That’s the routes plus 30 trucks. What would make my business attractive to a buyer is that being half the size means they could easily sell off half the trucks should they want to.

 

[bbsam]

Same people they've used before. Managers, staffing agency temps in rentals, draw from a list from people with experience, people delivering out of their cars. And the contractors too heavily leveraged to risk losing it all in a prolonged boycott/ strike.

Happening almost daily. This is what happens when one contractor walks.

Multiply by 1000. That roughly 15% of the contractors. There aren’t enough contingency teams to cover that mess.

 

[yadig]

View attachment 393588
Happening almost daily. This is what happens when one contractor walks.

Multiply by 1000. That roughly 15% of the contractors. There aren’t enough contingency teams to cover that mess.

I’m guessing FedEx freight is gonna get busy

 

[bacha29]

You’re right. I did say I would be out by July. It wasn’t going to be with a sale though.

My experience has been that the old adage is true: “Negotiations begin when one party says ‘No!’.”

That’s why I believe contractors hold far more leverage right now than you believe.

That’s why I believe the company has let things get to the point where they need contractors more than contractors need them.

Most recent trend on Facebook as far as contractors? Guys selling brand new fleets and getting out. The new people are figuring it out quickly and getting out and the veterans are holding position. Doing the bare minimum.

I’m still looking to sell though. I’m half the size as last year at this point due to a very bad peak and what seems to be a company hell bent on retribution. But for now, half of what I do every day used to be my own area that I now run on contingency. That’s where the money lies right now. Propping up failing areas. The problem for the company is they can’t find people to take the failing areas. That means I’ll continue to service an area that used to be mine at a considerable premium for several months. It also means that come peak, when they still don’t have someone to take over, I’ll continue at an even higher premium or I’ll pull back to my contracted area and not have to recruit for peak.

Reducing your exposure by downsizing to only what holds the most promise. You might be one of the lucky few who can do so. Many others are not likely to be so fortunate.

 

[fedx]

Clearly you misunderstand the nature of your relationship with Fat Freddy. You think you work for YOU. You do not work for YOU. You have never worked for YOU. You work for FAT FREDDY.

Now tell me something. How much do you think you could get out of your trucks? By your own admission they're just old used rags that you've come across.

The value that you hope to someday cash of out is the contract itself. Those "millions and millions" you've repeatedly told me about. A contract over which Fat Freddy reigns supreme. After all Lord Freddy giveth and Lord Freddy taketh away He knows that this is what you're counting on. Therefore, he's not likely to move quickly if at all. It's much more likely that he will wait to see just how many do fail and simply walk off from their contract and the level of threat to the network . After all, it's his network, not yours. He's likely to first figure out how little you'll take in order to protect a cash out you're desperately counting on.

So in the end he might give you a one time only in your face contract what was that they called it? Oh "enhancement " That's right , "enhancement" . It will be insultingly low and will come with a subtraction some place else. Always has. You will be presented with a Fedex pen and the dotted line to sign on. You can take it if you want or you are free to leave on your own accord.

Working as a Ground contractor, you're just like an hourly employee without any of the benefits (no insurance, no vacation time off, no pension, no 401K, etc). You're not a "business partner" like they'd like you to believe, you're more like an indentured servant.

 

[yadig]

Ground is bout to feel the same way express employees have for years!

 

[59 Dano]

You think there are tons of trucking companies willing to move freight for FedEx at a loss?

It's kind of impressive that he'd say that, considering he's spent 7 years that the company is going to run out of people to deliver the freight any minute now.

 

[bbsam]

Reducing your exposure by downsizing to only what holds the most promise. You might be one of the lucky few who can do so. Many others are not likely to be so fortunate.

Again. Negotiations begin when someone says no,

 

[bacha29]

Again. Negotiations begin when someone says no,

And if it's the contractor that says no? Fat Freddy simply takes the offer to someone else. Now, if every person he takes the offer to says no, then you might have something there but in the end somebody else will take it. It might take awhile to find that person but in they end they always do.

 

[floridays]

Working as a Ground contractor, you're just like an hourly employee without any of the benefits (no insurance, no vacation time off, no pension, no 401K, etc). You're not a "business partner" like they'd like you to believe, you're more like an indentured servant.

Or a CPA


Convenient Piece of Ass.

 

[bacha29]

Working as a Ground contractor, you're just like an hourly employee without any of the benefits (no insurance, no vacation time off, no pension, no 401K, etc). You're not a "business partner" like they'd like you to believe, you're more like an indentured servant.

Spot on. Migrant farm workers have better protection under the law than FXG contractors. You have none of the rights afforded employed workers in the US but at the same time you also have none of the autonomy and pricing power a true business owner would normally have. I'm amused by these guys on here blowing smoke up their bodily orifices (it won't go anywhere else) trying to make the others believe that they can and will shift the balance of power between FXG and it's contractors to one that favors them.

One thing is clear, contractors as a whole don't know what to do and even if they did know what to do they would never gain a majority consensus . And even if in the unlikely event they did gain a consensus they wouldn't stick with it long enough for it to matter.

These little contractor dust ups happen every few years but nothing substantive ever comes out of it. About the best they can hope for is that the few pennies per stop Fat Freddy was going to give them in their next contract will be moved up and given to them now and everybody will act like something big happened.

 

[bbsam]

And if it's the contractor that says no? Fat Freddy simply takes the offer to someone else. Now, if every person he takes the offer to says no, then you might have something there but in the end somebody else will take it. It might take awhile to find that person but in they end they always do.

Well I said no and I’m still here and I’m not everybody so that doesn’t really make sense.

Once more, with emphasis…THEY CAN’T GIVE THEM AWAY! NOBODY WANTS THEM! THEY ARE A MONEY PIT.

In the current climate with rock bottom rates, they have not been finding “that person”. Milwaukee, Madison, Rockford, all have had contingency running on them for years. Continuing to cut rates will not being the next round of contractors in.

 

[It will be fine]

It's kind of impressive that he'd say that, considering he's spent 7 years that the company is going to run out of people to deliver the freight any minute now.

I think he’s just mad someone is willing to risk everything to make changes, something he was too afraid to do his entire career. All his posts on this topic scream jealousy.

 

[zeev]

Trucking companies have 100 % turnover in contractors and drivers. Looking for an investment I suggest Tesla it will soon revolutionize the world like nothing else ever. How do I know working the supply chain for FedEx and SpaceX returns rockets from space.

 

[bacha29]

Well I said no and I’m still here and I’m not everybody so that doesn’t really make sense.

Once more, with emphasis…THEY CAN’T GIVE THEM AWAY! NOBODY WANTS THEM! THEY ARE A MONEY PIT.

In the current climate with rock bottom rates, they have not been finding “that person”. Milwaukee, Madison, Rockford, all have had contingency running on them for years. Continuing to cut rates will not being the next round of contractors in.

And just what specific measures are you going to take in response to this situation and to improve the lot of you and your fellow contractors?

 

[bacha29]

I think he’s just mad someone is willing to risk everything to make changes, something he was too afraid to do his entire career. All his posts on this topic scream jealousy.

I ask Sam the same question. What specific measures are you going to undertake to improve the lot of you and your fellow contractors. Simply stated, just exactly what are you going to do about it?

It will still come down to the same outcome.....Here is the load....This is what it pays....Do you want it or don't you?

 

[bbsam]

And just what specific measures are you going to take in response to this situation and to improve the lot of you and your fellow contractors?

I’m not.

I’ve done everything I plan to do. Now I’ll just bank a ton of contingency money. Because as we all know,

 

[bbsam]

I ask Sam the same question. What specific measures are you going to undertake to improve the lot of you and your fellow contractors. Simply stated, just exactly what are you going to do about it?

It will still come down to the same outcome.....Here is the load....This is what it pays....Do you want it or don't you?

Actually it comes down to this:

FedEx has made a mess. I’m sure they believe it’s for the better, but the short term is going to be very expensive for them. I’ll cash those checks. And when the day comes for the next contractor to move into what used to be mine…well, I don’t plan on handing them a well oiled machine to profit from.