FedEx contractor revolt?

[bbsam]

If it took government cash to keep you going and and now that it's ending and as a result you're going below the Mendoza Line what does that say about you superior management skills? Obviously, not what you try to make us believe they are.

It says that FedEx has a grossly flawed compensation model. But we all knew that, didn’t we?

 

[yadig]

I’m not sorry at all. I find it to be fascinating and I made sure to marry into a very large inheritance when my mother-in-law dies.

Does your wife have a sister?

 

[Mutineer]

Living off your mother in law says a lot about your character. But, as they say it's better to be lucky than good. That's if she hasn't cut you out of her will. Not many men would stand to be beholding to their MIL but if you don't mind it , that's fine.

LMAO! You spare no opportunity to belittle those who you allege are greedy, short-sighted, and have poor business acumen for "staying with XG too long", and then turn around and malign the same person for making the smartest business decision of all by marrying well!

 

[bbsam]

Exactly. You've resigned yourself to your fate. You've allowed your greed to cloud your vision of an obviously deteriorating situation economic situation until it was too late to do anything about it. I'm sorry to see it happen to you man but I told you several years ago that I believed that the Ground model had reached it's pinnacle and I thought that the best time had come for you guys to get out. Instead all I got was ridiculed and laughed at. So cherish the experience and enjoy the moment.

But you said that FedEx has all the power.

The power to do what?

 

[burrheadd]

Does your wife have a sister?

How about mo-in-law she got a sis

 

[bbsam]

Does your wife have a sister?

How about mo-in-law she got a sis

Back off fellas! We can’t be splitting the inheritance too many ways!

 

[burrheadd]

Back off fellas! We can’t be splitting the inheritance too many ways!

Lmao

 

[compscigrad]

You talk like you have control when the reality is that you have NO control. You talk like you and contractors in general have a coordinated plan to return prosperity to contractors when the reality is that you have NO plan.

So what will be the outcome? Patton and his boys will put on a show for the media in Vegas with Patton the headline act. Why? Because he's an attention hog. But, 3 months from now, the show's over, the media have long since moved on to the next story , powerless contractors will continue to be totally beholding to Fat Freddy, Black Friday will be like every other Black Friday and peak will be just another peak .

You contractors are in the worst possible position. Stayed too long, over extended and overly committed to a flawed and potentially failing business model. One whose future direction you have no control over whatsoever but one that you cannot walk away from without being economically ruined.

So what are going to do? There's nothing you can do but to try and ride it out hoping and praying that you don't run out of of cash before the economics of the matter swings back into your favor. But, what are the odds of that happening?

I have a tangental question, how do you fire an employee who's quitting?

 

[yadig]

I have a tangental question, how do you fire an employee who's quitting?

FedEx can do it!

 

[It will be fine]

If it took government cash to keep you going and and now that it's ending and as a result you're going below the Mendoza Line what does that say about you superior management skills? Obviously, not what you try to make us believe they are.

Wow, you don’t understand a situation again. Government cash did not keep my company going. It helped offset the increased costs imposed by the market and the government restrictions. Do you ever get tired of being so wrong?

 

[instiches]

PPP was not enough to keep a company going. I plowed 4x that amount into new trucks last year and that wasn't even enough for our covid growth. The ERC cash is significant and allows contractors an exit ramp without having to sell, but most contractors who are going down the ERC route are playing with fire. The justifications these firms are putting together is complete bull and a straight up bet that they won't be audited. It's tax fraud.

 

[bbsam]

PPP was not enough to keep a company going. I plowed 4x that amount into new trucks last year and that wasn't even enough for our covid growth. The ERC cash is significant and allows contractors an exit ramp without having to sell, but most contractors who are going down the ERC route are playing with fire. The justifications these firms are putting together is complete bull and a straight up bet that they won't be audited. It's tax fraud.

Tax fraud seems like a pretty bold assertion. What makes you think so? What justifications have you heard?

 

[instiches]

Tax fraud seems like a pretty bold assertion. What makes you think so? What justifications have you heard?

SL's packet for my entity was completely BS, and I refused to file it. You'll have to PM me to discuss in more detail. Combine that with their extremely limited audit coverage, SL is using this opportunity to make a bunch of money and skip town. Also, the supply chain, and OSHA mandates other chop shops are claiming for contractors are also BS.

Most contractors aren't sophisticated enough tax/accounting wise to know what they're singing up for here, so maybe a lot of audits would result in only civil penalties, but these firms are being so liberal and playing with perjury violations. The $$$ is clouding everyone's judgement. If the IRS audits and disputes one of these firm's clients based on their shoddy justification, you can bet they will be pulling up all of their other client files.

 

[bacha29]

Wow, you don’t understand a situation again. Government cash did not keep my company going. It helped offset the increased costs imposed by the market and the government restrictions. Do you ever get tired of being so wrong?

So tell me, just exactly what is your problem? One moment you're teetering on the edge of the financial abyss while in the same breath you're bragging about how well you're doing. So which way is it? It would appear that you don't really know what it is you want or how to go about getting it.

 

[bacha29]

But you said that FedEx has all the power.

The power to do what?

To do what they've always done and that is to do whatever they want damn well please to you. Perhaps it's now a case where the venture is no longer attractive enough to justify your continued willingness to put up with being cuffed around by Fat Freddy.

 

[bbsam]

To do what they've always done and that is to do whatever they want damn well please to you. Perhaps it's now a case where the venture is no longer attractive enough to justify your continued willingness to put up with being cuffed around by Fat Freddy.

Of course they’ll do whatever they want. I just think they’ll have a far worse company because of it. I know my effort is down by a lot. But the game has changed and I’ll play this angle for now until it’s no longer profitable. Then I’ll survey the field and make other decisions if need be.

But if you think I’m gonna jump when Pittsburgh and Memphis demand, no. That ship sailed a while ago.

And yes they’ll put up with it until they find a better option. I’m sure it annoys several in the district that I’m still contracting with the company. I’ve not been one of their favorites. But that should tell them something. They’ve created a model where they don’t have a better backup than to have me continue doing what I do.

How messed up is that?

 

[bacha29]

Of course they’ll do whatever they want. I just think they’ll have a far worse company because of it. I know my effort is down by a lot. But the game has changed and I’ll play this angle for now until it’s no longer profitable. Then I’ll survey the field and make other decisions if need be.

But if you think I’m gonna jump when Pittsburgh and Memphis demand, no. That ship sailed a while ago.

And yes they’ll put up with it until they find a better option. I’m sure it annoys several in the district that I’m still contracting with the company. I’ve not been one of their favorites. But that should tell them something. They’ve created a model where they don’t have a better backup than to have me continue doing what I do.

How messed up is that?

Now you're talking sense. Your plan is to downsize to whatever profitable minimum that exists and to resist any attempts by Fat Freddy to pull you out from behind that economic fortress. Like the first TM at our terminal told me...."I admit it...it's a rotten deal but you signed it. Now I'm going to tell you how you can survive. Keep borrowed money to minimum and limit your exposure to risk and to variable costs to only that which you cannot avoid"

 

[It will be fine]

So tell me, just exactly what is your problem? One moment you're teetering on the edge of the financial abyss while in the same breath you're bragging about how well you're doing. So which way is it? It would appear that you don't really know what it is you want or how to go about getting it.

I’ve talked about systemic problems. I’m not sure I’ve ever claimed to be on the edge of the financial abyss. My current contract is pure trash, I doubt I’ll post a profit this year. I didn’t spend all the Covid money so I have a lot of wiggle room to play with. Many contractors carry a lot more debt than I do, had a worse 2021 peak and lack the cash reserves I have. That’s a systemic problem worth discussing. My volume is down around 11%, I’ve cut 30% of my weekly dispatches and I’m still losing money. The system is broken, that doesn’t mean I’m broke.

 

[burrheadd]

I’ve talked about systemic problems. I’m not sure I’ve ever claimed to be on the edge of the financial abyss. My current contract is pure trash, I doubt I’ll post a profit this year. I didn’t spend all the Covid money so I have a lot of wiggle room to play with. Many contractors carry a lot more debt than I do, had a worse 2021 peak and lack the cash reserves I have. That’s a systemic problem worth discussing. My volume is down around 11%, I’ve cut 30% of my weekly dispatches and I’m still losing money. The system is broken, that doesn’t mean I’m broke.

So, you just doing it for giggles

 

[It will be fine]

So, you just doing it for giggles

I do it to make money. Posting a loss on the year isn’t that big of a deal, it happens often. My corporate account goes down a bit, my personal accounts go up, 401k gets maxed out again etc. The problem is my equity value used to increase, right now that value is in the gutter. I’m hopeful FedEx will address the systemic problems and that will rebound when the overall economy does.