FedEx contractor revolt?

[Nolimitz]

My guess would be they don’t charge DOD a fuel surcharge to avoid this.

just one more loop hole...

 

[Star B]

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.

Final Stage Contingency is probably shoving as much of it over to Express & Freight as they can.

 

[Package dude]

View attachment 398700
Terminating Spencer won’t shield FedEx from this tsunami.

Maybe that’s been FedEx plan the entire time. Bankrupt or dilute the equity to the lowest possible amount with the ground contractors before merging the two co-ops. You guys ever wonder why FDX wanted to look at y’all business books. Maybe FedEx wanted to get an idea of what a possible contractor buyout may cost. Must have been higher then what the company wanted to pay because it seems they are ok bankrupting contractors instead. Just a thought!

 

[wakadafish]

Maybe that’s been FedEx plan the entire time. Bankrupt or dilute the equity to the lowest possible amount with the ground contractors before merging the two co-ops. You guys ever wonder why FDX wanted to look at y’all business books. Maybe FedEx wanted to get an idea of what a possible contractor buyout may cost. Must have been higher then what the company wanted to pay because it seems they are ok bankrupting contractors instead. Just a thought!

buying fxg out for a merge even if they paid zero removes RLA protections so that is highly doubtful. the theory for years was express transitioning most of its volume to ground and decreasing employee costs for express. afaik the plan is still to close 100 express terminals in 2023

 

[bbsam]

Final Stage Contingency is probably shoving as much of it over to Express & Freight as they can.

So they’ll pay anyone any amount. Just not contractors.

 

[MAKAVELI]

buying fxg out for a merge even if they paid zero removes RLA protections so that is highly doubtful. the theory for years was express transitioning most of its volume to ground and decreasing employee costs for express. afaik the plan is still to close 100 express terminals in 2023

I doubt FedEx cares about the RLA at this point. The merge will happen regardless and wether we are all employees or employees of contractors the RLA status will eventually be removed.

 

[wakadafish]

So they’ll pay anyone any amount. Just not contractors.

a beat up 02 Honda Odessey is better than any professionally branded truck for your multi billion dollar company dont you know?

 

[MAKAVELI]

So they’ll pay anyone any amount. Just not contractors.

It's all about control at this point. Basically they'll pay more to bust-up your contractor union.

 

[Package dude]

buying fxg out for a merge even if they paid zero removes RLA protections so that is highly doubtful. the theory for years was express transitioning most of its volume to ground and decreasing employee costs for express. afaik the plan is still to close 100 express terminals in 2023

Fred is out of the picture now so I don’t think FDX is worried about the RLA. UPS has done very well with the union and maybe Memphis is waking up to that fact. The entire contractor model has ran its course and is outdated. As far as closing 100 express station it’s my understanding those stations are relocating into FDX ground buildings. I’ve been with Express for 35 plus years and one thing for sure is they are control freaks that’s not going to turn the entire delivery operation over to contractors.

 

[Package dude]

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.

Express CAN NOT pick up and deliver ground packages. By doing so FedEx would lose the RLA status. Our scanners at Express are blocked from scanning ground bar codes. The only exception is pkgs left in our express drop boxes. Those scans only show that we took possession of the pkg.

 

[MAKAVELI]

Express CAN NOT pick up and deliver ground packages. By doing so FedEx would lose the RLA status. Our scanners at Express are blocked from scanning ground bar codes. The only exception is pkgs left in our express drop boxes. Those scans only show that we took possession of the pkg.

There is no automatic lever that removes Express from the RLA status. It would have to be challenged in the courts and likely years. We can scan Ground pkgs at Drop boxes and only would require a software update to scan at any stop. FedEx has been pushing the boundaries between the two for the past few years and with Network 2.0 it's clear they do not care if their RLA status is gone. They see how UPS makes it work and without the baggage of the contractor model.

 

[wakadafish]

Fred is out of the picture now so I don’t think FDX is worried about the RLA. UPS has done very well with the union and maybe Memphis is waking up to that fact. The entire contractor model has ran its course and is outdated. As far as closing 100 express station it’s my understanding those stations are relocating into FDX ground buildings. I’ve been with Express for 35 plus years and one thing for sure is they are control freaks that’s not going to turn the entire delivery operation over to contractors.

contractor model for all its flaws is a capital light model very little money is required to scale operations up and it doesn't hit as hard in a downturn. For FedEx to actually switch over it would either take years if not decades 1 terminal at a time with no express integration or cost 10s of billions in upfront capital along with the ability to trucks out of its rear since were in a shortage.

as far as the 100 terminals a portion is being collocated (mine will be one of such) others are just straight up shutting down.

 

[Package dude]

There is no automatic lever that removes Express from the RLA status. It would have to be challenged in the courts and likely years. We can scan Ground pkgs at Drop boxes and only would require a software update to scan at any stop. FedEx has been pushing the boundaries between the two for the past few years and with Network 2.0 it's clear they do not care if their RLA status is gone. They see how UPS makes it work and without the baggage of the contractor model.

I agree! Network 2.0 is all about merging the two operations and possibly bring all employees in house. I have no crystal ball but the way the contractors are being squeezed now seems to point in that direction. I work out of a huge Express hud/station and we run 100’s of contracted line haul trucks with astra label line haul lanes I’ve never seen before on boxes.

 

[bacha29]

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.

View attachment 398707

So what you're saying is that once contractors have taken the contingency money and the timeline of Schedule K has expired they're all going to leave?

 

[XEQaF]

so do you think the Route Consultant Purchasing Alliance is shelfed?

 

[MAKAVELI]

I agree! Network 2.0 is all about merging the two operations and possibly bring all employees in house. I have no crystal ball but the way the contractors are being squeezed now seems to point in that direction. I work oFedEx will also be able to send packages based on the most effective route rather than Ground or Express network affiliationut of a huge Express hud/station and we run 100’s of contracted line haul trucks with astra label line haul lanes I’ve never seen before on boxes.

I just don't see how they intend to keep both models while working together. Sounds like a cluster fu.

FedEx to consolidate stations, delivery routes in $2B operational overhaul

Read a one minute summary of FedEx to consolidate stations, delivery routes in $2B operational overhaul

share.summari.com

Network 2.0 will consolidate FedEx’s facility footprint in more rural markets to a single station across operating companies
In heavily populated markets, distinct Express and Ground operations will be co-located under one roof to better facilitate package transfers
FedEx will also be able to send packages based on the most effective route rather than Ground or Express network affiliation.

 

[floridays]

So they’ll pay anyone any amount. Just not contractors.

I still don't understand why you guys just don't show up to work, en masse.

I actually do for the short term, I simply think if you did the short term would be shorter than you think.

 

[floridays]

I doubt FedEx cares about the RLA at this point. The merge will happen regardless and wether we are all employees or employees of contractors the RLA status will eventually be removed.

How? You made the statement.

 

[bbsam]

So what you're saying is that once contractors have taken the contingency money and the timeline of Schedule K has expired they're all going to leave?

I’m saying that if and when the company stabilizes outside of peak funding and contingency, the underlying contracts aren’t worth it and it looks like a company without a future.

There is a short game and a long game.

 

[floridays]

Fred is out of the picture now so I don’t think FDX is worried about the RLA. UPS has done very well with the union and maybe Memphis is waking up to that fact. The entire contractor model has ran its course and is outdated. As far as closing 100 express station it’s my understanding those stations are relocating into FDX ground buildings. I’ve been with Express for 35 plus years and one thing for sure is they are control freaks that’s not going to turn the entire delivery operation over to contractors.

I disagree. They would have been glad to but they were too cheap to make that a reality.