FedEx contractor revolt?

[bbsam]

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.

That’s the thing. It’s a mistake to think FedEx has ended anything. Ugly is just the around the corner.

 

[bacha29]

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.

What it will mean is that contingency contractor you know the one who went out and bought up a battalion size stack of trucks to become Mr. Contingency Buzzard will have no contingency cash and will have to find some other place to park them as well as paying for fuel and labor to move them to that staging area. And it might be quite a drive.

In the end as we talked about earlier the first thing they'll ty to do is to take those abandoned areas and forcibly impose them on the nearest to that area contractor, leaving him with three choices, either be encumbered with that additional area or walk away or try to find another unsuspecting slug to load the entire mess onto.

 

[bacha29]

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

You might have uncovered the long range strategy of FXG. It becomes the Master Franchise which represents enterprise value placing additional value on the plus side of the balance sheet . It in turn grants franchise rights to smaller franchisees and does a charge back of franchise fees the smaller franchisee has to pay to FXG.

 

[bbsam]

What it will mean is that contingency contractor you know the one who went out and bought up a battalion size stack of trucks to become Mr. Contingency Buzzard will have no contingency cash and will have to find some other place to park them as well as paying for fuel and labor to move them to that staging area. And it might be quite a drive.

In the end as we talked about earlier the first thing they'll ty to do is to take those abandoned areas and forcibly impose them on the nearest to that area contractor, leaving him with three choices, either be encumbered with that additional area or walk away or try to find another unsuspecting slug to load the entire mess onto.

It just doesn’t happen like that. North Milwaukee, Madison, Rockford, all have CSAs that they can’t get filled. Trying to simply pawn it off on the “next contractor over” will just create another failing angry contractor.

This isn’t new. FedEx has been failing to deal with this mess for a couple years now.

 

[bacha29]

It just doesn’t happen like that. North Milwaukee, Madison, Rockford, all have CSAs that they can’t get filled. Trying to simply pawn it off on the “next contractor over” will just create another failing angry contractor.

This isn’t new. FedEx has been failing to deal with this mess for a couple years now.

It will be the first thing they'll try because it will be the most cost effective course of action. The first thing you do is to try the least expensive solution and this is it. What percentage of contractors FDX tries to do it to will accept the deal is somethig neither of us knows for sure and neither does FDX until they first try it.

 

[bbsam]

It will be the first thing they'll try because it will be the most cost effective course of action. The first thing you do is to try the least expensive solution and this is it. What percentage of contractors FDX tries to do it to will accept the deal is somethig neither of us knows for sure and neither does FDX until they first try it.

Well from experience I can say they haven’t been trying it.

 

[bacha29]

Well from experience I can say they haven’t been trying it.

But Sam, the Q1 earnings report and forward looking guidance is due out on or around 9-22. Let's wait until we see what the numbers are and what those 3 new board members have to say about it. When they see that contingency contractors are hitting margins hard they will demand action and it may be very unpleasant from contractors perspective. And perhaps far removed from what they hoped for or expected.

 

[purplelife]

Have they asked express stations to send couriers to help ground in those struggling ground locations? Like they did a year or two ago, click on at express and go run at ground on the weekend.

 

[Package dude]

Have they asked express stations to send couriers to help ground in those struggling ground locations? Like they did a year or two ago, click on at express and go run at ground on the weekend.

My Express location is so understaffed to the point that most couriers are working 60-70 hours a week with Saturday being mandatory. We had entire route loops not running because there were nobody to cover the routes. We’re down 47 drivers in the last 6 months and the ones who are hired to replace them walkout within a few days or weeks. It has gotten so bad that 1,500-2,000 dex 01’s are a daily occurrence. After the proper exception code is placed on the packages the ops managers override the failures by placing a dec 08 ( customer not in ) on them to hide their failures. Director and above may think they are looking good but it’s just a house of cards waiting to fall. To all the Ground contractors I hope it bring y’all comfort knowing your division isn’t the only one imploding.

 

[Mutineer]

It just doesn’t happen like that. North Milwaukee, Madison, Rockford, all have CSAs that they can’t get filled. Trying to simply pawn it off on the “next contractor over” will just create another failing angry contractor.

This isn’t new. FedEx has been failing to deal with this mess for a couple years now.

Lately, FedEx demonstrates everyday that "failing angry contractors" are no deterrent to ANY decision they make.

 

[Star B]

It has gotten so bad that 1,500-2,000 dex 01’s are a daily occurrence. After the proper exception code is placed on the packages the ops managers override the failures by placing a dec 08 ( customer not in ) on them to hide their failures.

That would be the quickest call to the ethics line I would make if I discovered that they were doing that to that many packages.

 

[Package dude]

That would be the quickest call to the ethics line I would make if I discovered that they were doing that to that many packages.

It’s daily!

 

[Maui]

My Express location is so understaffed to the point that most couriers are working 60-70 hours a week with Saturday being mandatory. We had entire route loops not running because there were nobody to cover the routes. We’re down 47 drivers in the last 6 months and the ones who are hired to replace them walkout within a few days or weeks. It has gotten so bad that 1,500-2,000 dex 01’s are a daily occurrence. After the proper exception code is placed on the packages the ops managers override the failures by placing a dec 08 ( customer not in ) on them to hide their failures. Director and above may think they are looking good but it’s just a house of cards waiting to fall. To all the Ground contractors I hope it bring y’all comfort knowing your division isn’t the only one imploding.

If what you say is true, then the info is readily available and those falsifying should be fired. It helps nothing.

 

[purplelife]

If what you say is true, then the info is readily available and those falsifying should be fired. It helps nothing.

Is it response freight? Because that was something being done and seemingly no one had an issue with phantom scans getting placed on them.

 

[Package dude]

Is it response freight? Because that was something being done and seemingly no one had an issue with phantom scans getting placed on them.

Nope it’s daily reg fulltime A.M. routes. The response routes are only half staffed also. Those guys just don’t van scan or deliver anything and ride their freight around all day and at the end of the shift it’s dumped back into the station.

 

[59 Dano]

Here comes the end of contractors and making the UPS model. All employees and 1 truck in one area. It makes the most business sense

You've lost your mind.

 

[Maui]

Nope it’s daily reg fulltime A.M. routes. The response routes are only half staffed also. Those guys just don’t van scan or deliver anything and ride their freight around all day and at the end of the shift it’s dumped back into the station.

I know some markets that asked the ramp to retain the RESPONSE freight so it wouldn't hit the station as WDL. Falsifying that or the AM deliveries covers up issues and delays getting help. 1000-2000 DEX01 will get a lot of attention and it might be uncomfortable. At the same time it makes a case for pay improvements and possibly eliminating RESPONSE.

 

[bbsam]

Lately, FedEx demonstrates everyday that "failing angry contractors" are no deterrent to ANY decision they make.

True. It also doesn’t get the packages picked up and delivered.

 

[It will be fine]

Lately, FedEx demonstrates everyday that "failing angry contractors" are no deterrent to ANY decision they make.

They don’t care about failed angry customers either. Upper management has lost their freakin minds.

 

[Mutineer]

If what you say is true, then the info is readily available and those falsifying should be fired. It helps nothing.

An integrity issue that large has got to be a status-quo open secret. Somebody big already knows.

Besides, the recent actions of the overfed, bellowing mook running the show haven't been very ethical.

Like informing a blood and feather faced fox that a fox is guarding a hen house.