It’s September 5th. ERC checks are beginning to roll in. Why do you believe we’ve passed the point of massive contractor exodus? Do you think people coming in are somehow able to make the crappy contracts work where well seasoned contractors are failing?
And I’ll absolutely take the contingency money. Why wouldn’t I? I’m not bent on destroying the company. I want the company to be something that’s profitable for me to be involved with. Contingency makes the possible. If and when it goes away, so do I. Honestly, I think that’s the case for everyone doing contingency. If the company decides tomorrow not to pay it out anymore, contractors would stop doing it. If the company decides that contingency is their “solution” I’ll continue to cash the checks.
What is the one common piece of rhetoric coming out of contractors? All of them stated their strong support for the company. Why because for many every dime they have to their name is tied up in a severely flawed delivery network. Nevertheless, they took the deal.
Even going back to the formative years of Roadway Package System, Ivan Hoffman had a clear message to Day 1's: "Your success will depend on your ability to control your fixed and variable costs". FXG is simply reinforcing the same message but in a more clear, stern and forceful manner. What they're saying is simple and impactful: " Get ready for hard times. There is only so much money to go around and concern for what you've got invested in it is no concern of ours. The satisfaction of our shareholders will always come before the satisfaction of our employees and contractors"
Face the facts. Transportation has always been extremely vulnerable to global economic and geopolitical volatility. When demand falls so goes the need for transportation. In addition. despite all the threats regarding suspension of service X isn't worried because they know that they've got the vast majority of remaining contractors by their economic throats
In the meantime if you have some surplus capacity and have people willing to drive for the money offered and make a sincere effort there's no reason not to take the K offer. But nobody in their right mind should go out there and procure a battalion size group of trucks them make promises to new operators you might not be able to keep.
www.reuters.com
