floridays
Well-Known Member
Good, tighten your chinstrap and buckle up.
FedEx contractor revolt?
- Thread starter CookiePuss
- Start date
Just wait until they're in a wreck and file insurance claim. I thought about trading in my SUV on a passenger van ,pull the seats out and go deliver either for FDX or UPS. If I did everything the legal way it just wasn't going to pay well enough not to mention a headache I just didn't need.
Despite its overwhelming position of power over its contractors, FedEx Ground is still struggling with its profit margins, which dropped to 8% in 2022 from 18% in 2012. That compares with 13% in 2021 for rival United Parcel Service Inc
FedEx Power Play Sends the Wrong Message to Contractors
Abolishing the delivery business of it most prominent critic isn’t going to end widespread discontent.www.bloomberg.com
All these hoops they jump through to keep out unions and it isn't even worth it.
Golden package
Member
That was my thought exactly. They couldn't afford to have a mass exodus from express before peak knowing that they were going to need a shift some of that freight from this ground fiasco over to express.Now you know why we got a raise.
I think you're on to something. Ground will set aside boxes and Express local P&D will come around and take as much of it as they can. Clearly what they're counting on and it has been discussed here before is that X is counting on a pretty slow peak season as discretionary household incomes begin to dry up.
floridays
Well-Known Member
I guess ground may find out they can't dictate all the moves available to a contractor. It's just business, I hope ground doesn't get their feelings hurt. Sam, do you predict an avalanche?
That’s a great question. I’m not sure. I do think that the contractor ranks being decimated in the classic sense (-10%) isn’t out of the question. I could see it going quite a bit higher depending on how Pittsburgh conducts themselves going forward.
What I do know is that they’ve done nothing to make themselves stronger. And yes, contractors can smell it. Fedex’s reliance upon contingency is a brave look to the public but I believe it’s a farce. If just bringing people in in cars and trucks would get it done, they wouldn’t have hundreds of open contracts.
The even larger picture looks even bleaker to me. Their disdain for contractors and the lies they tell to the press have destroyed any good will they had. I don’t know how they ever get that back.
And that’s where contractors make the decision. If they believe that peak is somehow profitable, they’ll stay and cash the pay checks and leave shortly after. If they believe they will just break even or lose money, there’s really no reason to push through the headaches.
One thing I think almost all contractors agree on is that FedEx absolutely will not drain them of the ERC the way they did the PPP loans. I’d set my trucks on fire before I let that happen!
Three years ago this person could have freed himself and have some cash in his pocket to start over .There are few human emotions that rivals what it feels like to finally be free of that horrible corporation. It was quite obvious that things were going to get worse for contractors but there was no way I could ever envision that it would get this bad.
zeev
Well-Known Member
FedEx has followed the corporate tradition of squeezing the last bit of blood out of a dying business like Kmart, Sears, and GE. Increase dividend to drive up share price by not paying the fuel surcharge to contractors. If they are shorting the line haul their fuel surcharge they will be gone real quick, Are P&D not given a fuel surcharge in their contracts?
And miss the front row seat to this! Are you mad!
Here’s the other dirty little secret: there’s going to be incredible amounts of contingency money for the taking. A lot of guys won’t do it. But once the last they stop caring about getting FedEx back on the right path, squash the last bit of pride in the company, they’ll stand to make serious bank. Stick around just long enough to soak it up, pad the bank account, seek the trucks and exit stage right.
Spencer made the point that ultimately contingency is bad for the company and contractors.
wakadafish
Member
we're throwing in the towel here as well schedule k was crap and they are fully intending for us to cover the two failing contractors in our building this peak where we will ultimately lose money. selling is impossible for any amount that is worth it our fleet is paid off so we at least won't go broke walking away.
Perhaps I will amend my previous statement and say that yes, will be an avalanche of contractors leaving.
wakadafish
Member
2 others are on the verge of failing one just lost their bc and they are a first-year contract other is under investigation because bc and owner have been using driver's numbers that no longer work for them to run over dot hours to get
delivered other 6 are all bleeding but not dead yet all are short staffed and can't up their pay to attract new recruits without going bankrupt we make up 18% of the terminal btw.
It’s really a shame they’re driving it off a cliff like this. They say they are confident in their contingency operations. I don’t know how they could be.2 others are on the verge of failing one just lost their bc and they are a first-year contract other is under investigation because bc and owner have been using driver's numbers that no longer work for them to run over dot hours to get
wakadafish
Member
best part they are opening a hub next door next month while they can't even remotely staff the facility they currently have. as of right now there short 380 people that they need to even open pre peak.
Fred's Myth
Nonhyphenated American
252.247-7003 Pass-Through of Motor Carrier Fuel Surcharge Adjustment To The Cost Bearer.
As prescribed in 247.207, use the following clause:
Pass-Through of Motor Carrier Fuel Surcharge Adjustment to the Cost Bearer (JUN 2013)
(a) This clause implements section 884 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417).
(b) Unless an exception is authorized by the Contracting Officer, the Contractor shall pass through any motor carrier fuel-related surcharge adjustments to the person, corporation, or entity that directly bears the cost of fuel for shipment(s) transported under this contract.
(c) The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts, including subcontracts for commercial items, with motor carriers, brokers, or freight forwarders. 48 CFR § 252.247-7003 - Pass-Through of Motor Carrier Fuel Surcharge Adjustment To The Cost Bearer.
Was there an exception authorized? If not, FedEx is violating Federal Law.
It will be fine
Well-Known Member
My guess would be they don’t charge DOD a fuel surcharge to avoid this.
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