You think this is over? Why would you think that? Nothing has changed.
FedEx contractor revolt?
- Thread starter CookiePuss
- Start date
And just exactly what is going to happen next? All I've heard from you guys to this point is big talk and bluster but no SPECIFICS when it comes to just exactly what you're going to do.
Right now you're all back where you started from....."Here's the load....."Here's what it pays"..... "Do you want it or don't ya".
I think you’re missing the point. You’re getting lost in the news cycle. This is just the latest headline of a story that we’ve been telling for months here.
And my prediction has been that the model would implode by peak and many contractors would use ERC money to get out.
Everything is still continuing on that path. And yet you think a headline is the story?
So in other words, you're calling each others bluff. As for peak, with all the COVID cash long since spent and economic activity slowing as Walmart has noted with people spending only on food and low cost clothing I don't think you're going to have much of a peak to worry about.
I don’t know. Going broke isn’t a bluff.
It isn't about contractors going broke. Johnny Dollar Sign doesn't care about that. It's about CONTROL. His public response was all about CONTROL . The only thing he knows is CONTROL. In addition it would appear that he has some kind of a score to settle with contractors. When you combine diminishing returns with a growing unwillingness to continue to be cuffed around by Fat's, Sahib Raj and Johnny Dollar Sign you have the current sate of FXG and their contractors.
The only course of action I can see for you Sam is to salvage what you can get out of it and free yourself.
It doesn’t matter how FedEx wants to see it. It doesn’t matter how much control they want.
Nobody cares whether they care about the contractors. If contractors go broke, they either spend three times as much figuring it out through contingency or a revolving door of contractors. It’s that simple. There’s no bluff. It’s just the cards on the table.
And you say this guy is the smart one?
If the network collapses, then it collapses. You don't have any control over it to begin with. If the company doesn't at least match Wall Street estimates so what? Johnny Dollar Sign is a control freak. Contractors in his mind's eye are cheap, plentiful and expendable especially if they get out of line.
Once again it comes back to the days of Dan Sullivan and the origins of the company.
When it comes to the divestiture of risk, liability and variable costs..... you're a contractor.
When it comes to command and control over the workforce.....you're an employee.
And worst of all they have zero respect for the fact that they had to ask you to invest money in the venture.
The reason being is that unlike company stock the fate of that investment has zero direct impact on the companies bottom line.
He's not going to worry about what happens to you. And you guys aren't fooling anybody when it comes to you concerns regarding the future of the company and what happens to it. You're just hiding behind it out of fear of what the future holds for you.
The best opportunity for you to get out was 3-4 years ago but you didn't take it. That's no one's fault but your own.
I think you might get it.
If it collapses, it collapses. I think most contractors are coming to that mindset. We aren’t necessarily trying to prop it up and make it the best we possibly can. Going through the motions, picking up contingency, cashing the checks. Zero ambition. Zero passion.
If it fails, it fails.
If it collapses, it collapses. I think most contractors are coming to that mindset. We aren’t necessarily trying to prop it up and make it the best we possibly can. Going through the motions, picking up contingency, cashing the checks. Zero ambition. Zero passion.
If it fails, it fails.
thedownhillEXPRESS
Well-Known Member
If He Dies Ivan Drago GIF
https://media4.giphy.com/media/lZhy...9fc99bad3384ff811b2c8c30e1&rid=giphy.gif&ct=g
The uncertainty might go as far as the end of August but what contractor is willing to be one of that 10 contractor committee when Johnny Dollar Sign says it would be a breach of contract?
Again, this is a battle for control. Whoever acquires or maintains control will be able to protect and preserve their margins and operating returns. About the best contractors can hope for is a stalemate. The much more impactful battle might just be in the boardroom. The company desperately needs the highest possible operating margin from Ground. It's entire plan for the next 4-5 years depends on it. Now how far they're willing to go to get those margins remains to be seen. And whatever that action might be you guys will be the first to know.
There will be no stalemate. The model is spiraling out of control and banks are taking notice. Do you think that might get Mr. Smith's attention? He has the control. Control to do what? Fix it or let it fail. Doing nothing is letting it fail. The financial community may finally be paying attention.
floridays
Well-Known Member
Sam, Do you know this guy?
Derwin Ellis's email & phone number - Managing Director at Inspired, LLC | SignalHire
Not that I know of.
floridays
Well-Known Member
Just curious.
Best wishes and hopes for you and those you employ.
Financial community might be paying attention but only the major shareholders can take action Deutsche Bank not listed among FDX largest shareholders. Among institutional investors Vanguard Group is the largest. A closer look seems to reveal that there are more buyers than sellers of the stock.
This what these guys are so angry about. They can't make any money running their routes. Can't get any money out of their contracts because they are worth less every day. FXG seems ready to respond harshly if there's an organized revolt.
I told them not to get greedy. Hanging around too long would be their undoing. Three or fours years ago speculators and contract flippers with no prior experience in the transportation industry were coming from every direction paying ridiculous prices for contracts not realizing that the industry was approaching it's pinnacle . Smart money struggled to keep a straight face when they signed the papers.
I think you hold a lot of residual anger when discussing FedEx that you project.
I don’t think we’re angry. At least I’m not. It’s just a different game now. Once you find the angle, there’s money to be made but the overall structure is a mess.
Star B
White Lightening
Amazon can bleed cash left and right because they are very profitable with AWS. Turnover for DSPs at our local facility is approaching 70% YoY.
That's nuts that you are flipping your DSPs that much.
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