FedEx contractor revolt?

[bbsam]

Sooo how does FedEx deal with open routes? What happens at yer terminal?

Package and pickup diversion to other routes? Contingency contractors? Temp-agency stooges in U-hauls?


This is partly true. If they truly knew how to deal with contingency contractors, there wouldn't be any.

Contingency is such a dirty proposition for the company. Guys can literally come in for 2 days, grab 200 smalls on a tight area and make $1000 in 5 hours. They can skip pickups, pass over bulk stops, ignore pretty much anything that isn’t easy money. And it’s a day to day proposition.

To see them make this move in a time when they already have dumpster fires blazing makes me wonder if we won’t see a staff revolt )or exodus) sometime soon. Nothing out of Pittsburgh makes much sense anymore.

 

[bbsam]

Exactly. Whenever I hear contractors talk about "my business" this, or "my business" that or "my business" something else....I simply laugh .

The only time they have something that resembles an actual business is when it comes to the divestiture of risk liability and variable costs...then you have a business, an independent contractor because that's all on you . The rest of the time you're an employee with none of the employee protections offered by state and federal labor laws.

They serves two specific purposes. To provide FDX with "purchased transportation" at bottom feeder rates and to serve as a firewall against the incursion of a union represented workforce.....That's it....nothing more...

Contractors must get back to that reality, comes to terms with it and proceed on the basis of that cold, hard fact. And for God's sake get that "my business" idea out of their heads immediately.

So in your opinion, should “not my business” run contingency for demonstrably good profit or not?

 

[MAKAVELI]

Contingency is such a dirty proposition for the company. Guys can literally come in for 2 days, grab 200 smalls on a tight area and make $1000 in 5 hours. They can skip pickups, pass over bulk stops, ignore pretty much anything that isn’t easy money. And it’s a day to day proposition.

To see them make this move in a time when they already have dumpster fires blazing makes me wonder if we won’t see a staff revolt )or exodus) sometime soon. Nothing out of Pittsburgh makes much sense anymore.

Pittsburgh is just part of the problem. The main problem lies in Memphis. Raj and the board are the ones calling the shots. It's like no one has any common sense up there.

 

[dezguy]

Contingency is such a dirty proposition for the company. Guys can literally come in for 2 days, grab 200 smalls on a tight area and make $1000 in 5 hours. They can skip pickups, pass over bulk stops, ignore pretty much anything that isn’t easy money. And it’s a day to day proposition.

To see them make this move in a time when they already have dumpster fires blazing makes me wonder if we won’t see a staff revolt )or exodus) sometime soon. Nothing out of Pittsburgh makes much sense anymore.

What is the possibility FedEx does this and shifts pick ups to Express, just to maintain service?

 

[bacha29]

So in your opinion, should “not my business” run contingency for demonstrably good profit or not?

And that's why any organized demand for improved rates will fall flat on it's face. You'll talk about standing up to the real company but once again they'll wave some extra dollars in front of you and the others and you'll all take it....The result?.....End of the insurrection.....And everything Patton tried to accomplish will be for nothing because his fellow contractors folded up like morning glories in the hot afternoon sun.

 

[bbsam]

And that's why any organized demand for improved rates will fall flat on it's face. You'll talk about standing up to the real company but once again they'll wave some extra dollars in front of you and the others and you'll all take it....The result?.....End of the insurrection.....And everything Patton tried to accomplish will be for nothing because his fellow contractors folded up like morning glories in the hot afternoon sun.

So is it my business to make the decision or is it not?

 

[bbsam]

What is the possibility FedEx does this and shifts pick ups to Express, just to maintain service?

I imagine anything is possible.

After all, WAGN.

 

[bbsam]

Pittsburgh is just part of the problem. The main problem lies in Memphis. Raj and the board are the ones calling the shots. It's like no one has any common sense up there.

Maybe. Everything about this in the FedEx media statements has John Smith written all over it. Heavy handed and messy. Not sure where that strategy will get them.

 

[It will be fine]

What is the possibility FedEx does this and shifts pick ups to Express, just to maintain service?

Would be hard to do in my area. I have a lot of pickups, I have about a 4:1 ratio of trucks to Express and I use every bit of space on them for pickups.

 

[Mutineer]

Contingency is such a dirty proposition for the company. Guys can literally come in for 2 days, grab 200 smalls on a tight area and make $1000 in 5 hours. They can skip pickups, pass over bulk stops, ignore pretty much anything that isn’t easy money. And it’s a day to day proposition.

That is an indirect way of saying that lotsa' boxes at yer barn are getting RTS, and you are a contingency contractor making bank.

If this is FedEx's big master plan to handle this issue, FedEx will not last more than a couple more years anyways.

It would be sensible to take the easy money and run.

 

[bacha29]

So is it my business to make the decision or is it not?

You can answer that question yourself by simply looking at who's DOT number is on the door of your truck. Then look at who's copyrighted and trademarked brand is on the side of it then look at whose freight is the ONLY freight going in it.

As was so correctly established earlier in this thread. You are simply a resource. A resource Dan Sullivan created and utilized to the fullest..

 

[bbsam]

You can answer that question yourself by simply looking at who's DOT number is on the door of your truck. Then look at who's copyrighted and trademarked brand is on the side of it then look at whose freight is the ONLY freight going in it.

As was so correctly established earlier in this thread. You are simply a resource. A resource Dan Sullivan created and utilized to the fullest..

So I cannot be compelled to do contingency work?

 

[Mutineer]

You can answer that question yourself by simply looking at who's DOT number is on the door of your truck. Then look at who's copyrighted and trademarked brand is on the side of it then look at whose freight is the ONLY freight going in it.

Blah, blah, blah. Semantics.
Is it impossible for you to understand that under the circumstances those facts are absolutely irrelevant to the long-abused peasants who are making a fortune by plundering a castle that is burning down?

And it's the king of the castle that lit the match!

 

[bacha29]

So I cannot be compelled to do contingency work?

Doing so simply reaffirms what I said all along. Johnny Dollar Sign knows that any organized contractor rebellion or insurrection will be very weak and very short lived. And as FDX pointed out Patton was the largest FDX contractor but his package volume made up less than one half of one percent of FDX total volume. And right now the contingency locusts are gathering at the edge of the Patton farm ready to harvest it like combines.

 

[bacha29]

Blah, blah, blah. Semantics.
Is it impossible for you to understand that under the circumstances those facts are absolutely irrelevant to the long-abused peasants who are making a fortune by plundering a castle that is burning down?

And it's the king of the castle that lit the match!

In the end FDX and it's FXG OPCO will be the last man standing. They've shown that they can take their largest contractor toss him out of the way and keep on trucking. So when it comes to Patton and the other contractors, it's simply a question of who was gaming who?

 

[XEQaF]

It was a chance to make a change like any organized protest, but the Opportunistic Contractors will be short-sighted and take the win fall with contingency contracts. This will happen over and over until they are the target, get pushed out until there will be a handful of national contractors that will enjoy being controlled by FDX

 

[bbsam]

Doing so simply reaffirms what I said all along. Johnny Dollar Sign knows that any organized contractor rebellion or insurrection will be very weak and very short lived. And as FDX pointed out Patton was the largest FDX contractor but his package volume made up less than one half of one percent of FDX total volume. And right now the contingency locusts are gathering at the edge of the Patton farm ready to harvest it like combines.

I think that’s short sighted. Imagine all the contingency contractors moving into 30% of the contracts. FedEx is on their heels and they’ve put themselves in that position. Contingency will get stuff moved but will not be consistent or reliable. It’s meant to be short term and in the current market, it isn’t. Eventually FedEx will have to address the crappy contracts because contingency is a “pick and choose” game. Contingency (with Fedex’s blessing) is driving up rates.

Think about it. You come to town with 15 drivers and take over an are for twice what a normal contract pays. In six months they offer a contract to you for 1/2 what you’ve been getting. Will you take it? Of course not. Neither will anyone else.

FedEx has a bunch of those open CSA’s and has 20 more since yesterday.

I’m sure FedEx will put out BS service numbers etc. but the fact remains that they’re making their situation worse and not better.

 

[Mutineer]

And right now the contingency locusts are gathering at the edge of the Patton farm ready to harvest it like combines.

So when it comes to Patton and the other contractors, it's simply a question of who was gaming who?

Wouldn't it be cute if it were Patton's locusts harvesting his former farm?

I don't think I would ever stop laughing.

I don't see why it isn't possible for a contractor to not renew his contract, and have a new entity already in place to contingency contract his own abandoned areas.

Am I oversimplifying that notion?

 

[wakadafish]

I think that’s short sighted. Imagine all the contingency contractors moving into 30% of the contracts. FedEx is on their heels and they’ve put themselves in that position. Contingency will get stuff moved but will not be consistent or reliable. It’s meant to be short term and in the current market, it isn’t. Eventually FedEx will have to address the crappy contracts because contingency is a “pick and choose” game. Contingency (with Fedex’s blessing) is driving up rates.

Think about it. You come to town with 15 drivers and take over an are for twice what a normal contract pays. In six months they offer a contract to you for 1/2 what you’ve been getting. Will you take it? Of course not. Neither will anyone else.

FedEx has a bunch of those open CSA’s and has 20 more since yesterday.

I’m sure FedEx will put out BS service numbers etc. but the fact remains that they’re making their situation worse and not better.

20 more during a time period in which there are generally few if any in years past.

 

[Cactus]

In the end FDX and it's FXG OPCO will be the last man standing. They've shown that they can take their largest contractor toss him out of the way and keep on trucking. Today is only day 1 since Patton’s contracts were cancelled.

Keep on trucking, for how long?

Today is only Day 1.

The grand finale’ is still to come. We’ve only seen the opening act.