FedEx contractor revolt?

[Fred's Myth]

Would likely require a billion or more dollars upfront, plus millions more in recurring expenses annually, and it would take forever and a day to recoup the upfront costs. It would then take another forever and two days before you might gain any meaningful financial benefit from the merger.

Are you talking about Ground, or TNT…..??

 

[Cactus]

Are you talking about Ground, or TNT…..??

He has no idea.

 

[yadig]

Would likely require a billion or more dollars upfront, plus millions more in recurring expenses annually, and it would take forever and a day to recoup the upfront costs. It would then take another forever and two days before you might gain any meaningful financial benefit from the merger.

I’m guessing contractors have a lot of leverage? That could also be expensive. What’s your opinion?

 

[bbsam]

I’m guessing contractors have a lot of leverage? That could also be expensive. What’s your opinion?

It is expensive. But it’s less expensive than any other option.

 

[It will be fine]

I’m guessing contractors have a lot of leverage? That could also be expensive. What’s your opinion?

It really wouldn’t be that expensive to keep contractors healthy. If they just didn’t lower contractor’s rates this year and passed on a fraction of the increased fuel surcharges they imposed on their customers they wouldn’t be in this mess. They would still have increased their profits. It’s possible they could have saved money by paying less contingency money for all the contracts that have been abandoned.

 

[Gone fishin]

Would likely require a billion or more dollars upfront, plus millions more in recurring expenses annually, and it would take forever and a day to recoup the upfront costs. It would then take another forever and two days before you might gain any meaningful financial benefit from the merger.

Cincinnati bell went to internet and cell phones because no one has land lines anymore. Businesses have to adjust to compete. It would hurt early but in years to come your company is stronger

 

[McFeely]

It really wouldn’t be that expensive to keep contractors healthy. If they just didn’t lower contractor’s rates this year and passed on a fraction of the increased fuel surcharges they imposed on their customers they wouldn’t be in this mess. They would still have increased their profits. It’s possible they could have saved money by paying less contingency money for all the contracts that have been abandoned.

It’s crazy to think of the company actually paid a fair wage (Express) and fair contracts (Ground), they’d likely be in a far better position than they are today. Happier contractors, happier employees, better service, and happier customers.

And? Cheaper than what they’re doing right now. Contingency contractors and flying Express couriers to other states to help out stations that can’t hire. SMH.

 

[It will be fine]

It’s crazy to think of the company actually paid a fair wage (Express) and fair contracts (Ground), they’d likely be in a far better position than they are today. Happier contractors, happier employees, better service, and happier customers.

And? Cheaper than what they’re doing right now. Contingency contractors and flying Express couriers to other states to help out stations that can’t hire. SMH.

Yup. Contingency teams used to be guys that came in from other terminals or even states. Now they’ve made it so commonplace the contingency contractors just hire local drivers to cover their commitment. They can pay more than the regular contractor so it’s easier to hire and they end up with much higher profit. The fact that FedEx doesn’t see a problem with this system they’ve created is remarkable.

 

[yadig]

I’m beginning to think that they don’t even know what to do..

 

[Cactus]

I’m beginning to think that they don’t even know what to do..

You’re learning.

 

[yadig]

You’re learning.

 

[Gone fishin]

Unless you don’t understand anything about this business and the direction it’s going, you would understand no matter the initial cost it’s paramount for the future of the company.
Twenty stops on one street , 150 in a neighborhood , pickups , 9hours. Full uniform, quality employees , top pay and benefits. No contractor hassle. DONE

 

[Fred's Myth]

Unless you don’t understand anything about this business and the direction it’s going, you would understand no matter the initial cost it’s paramount for the future of the company.
Twenty stops on one street , 150 in a neighborhood , pickups , 9hours. Full uniform, quality employees , top pay and benefits. No contractor hassle. DONE

That would mean less money in the pockets of those making the decisions.

Guess what they'll decide.

 

[Gone fishin]

That would mean less money in the pockets of those making the decisions.

Guess what they'll decide.

Maybe at first, but in the long run it wouldn’t. It’s common sense , I agree they obviously will decide and they’re not the smartest as the past reflects

 

[It will be fine]

Maybe at first, but in the long run it wouldn’t. It’s common sense , I agree they obviously will decide and they’re not the smartest as the past reflects

What might be most profitable years from now doesn’t matter. All that matters is what the next quarter looks like. That’s why they’ll let it burn, short term profits increase, their stock options increase. They’ll deal with 2 years from now then if they’re still around.

 

[Gone fishin]

What might be most profitable years from now doesn’t matter. All that matters is what the next quarter looks like. That’s why they’ll let it burn, short term profits increase, their stock options increase. They’ll deal with 2 years from now then if they’re still around.

I agree if it’s a mom and pops store , not a Fortune 500. There’s a difference

 

[MAKAVELI]

What might be most profitable years from now doesn’t matter. All that matters is what the next quarter looks like. That’s why they’ll let it burn, short term profits increase, their stock options increase. They’ll deal with 2 years from now then if they’re still around.

Except big long-term investors are not just looking at the next quarter. They will be looking at long term stability and profitability.

 

[Gone fishin]

At the end of the day , do I think Fedx cares really ? No , I think Fred made his generational money on the backs of his early foot soldiers. He turned it over to a guy so he could say he wasn’t involved in the company’s collapse.
The changes over the last 15 years have proved that he doesn’t care about the company. Nobody is that dumb on purpose

 

[59 Dano]

Are you talking about Ground, or TNT…..??

Apples and oranges. The purchase of TNT gained market share and other associated benefits (shipping lanes, etc.). Turning third party drivers into Ground employees is paying extra money to get volume that they already have.

 

[59 Dano]

Cincinnati bell went to internet and cell phones because no one has land lines anymore. Businesses have to adjust to compete. It would hurt early but in years to come your company is stronger

Because that's exactly the same as a delivery business hiring up people who currently work for third party contractors. Because employees are an evolving technology.