FedEx contractor revolt?

[MAKAVELI]

I don’t forsee anything like that happening. More likely contractors will simply sit on a portion of their routes on any given day. And it’ll change from day to day. Crappy rural routes will be the first to suffer. FedEx will do everything I. Their power to disguise the crappy service numbers but by peak they simply won’t be able to hide it.

FedEx will spend a dollar to save a nickel and to keep control. It's their MO. The only successful group to squeeze FedEx is the pilots.

 

[yadig]

I'm loving this. 500 bacha posts with bbsam and IWBF correcting each and every one, along with some laughable Express input such as Fred threw Raj to the wolves.

I was joking! Is this thread starting to stress you out? I’m sure you’re doing well and hoping the full transition to ground will give you bonuses, and stock options. I was seriously wanting your input on this. Quit being a parsley

 

[Code 82 Approved]

Lol. If you ask folks in Milwaukee, Madison, Rockford, and Rock Island how that idea’s going you might change your mind. Who wants to run a trucking company that loses money?

I spent 13 years there. Everyone has bailed, not one single contractor in one of the numerous buildings I’ve run out of from when I started is still there.
Well… a few owner finance guys might still be coming back at some point.

I saw the writing on the wall and left the new owners to do it their way, not the proven successful way.

 

[bbsam]

FedEx will spend a dollar to save a nickel and to keep control. It's their MO. The only successful group to squeeze FedEx is the pilots.

Don’t look now, but they’ve already lost control.

 

[MAKAVELI]

Don’t look now, but they’ve already lost control.

A lot easier to replace managers (contractors) and delivery drivers than pilots. They haven't lost control yet. When the system comes to a halt and the stock drops like a rock to new all time lows, then they have lost control.

 

[bbsam]

A lot easier to replace managers (contractors) and delivery drivers than pilots. They haven't lost control yet. When the system comes to a halt and the stock drops like a rock to new all time lows, then they have lost control.

No. It really isn’t. Not at the price they’re trying to pay.

 

[MAKAVELI]

No. It really isn’t. Not at the price they’re trying to pay.

That's because they look at you as employee not a business. What you're experiencing is basically the same treatment Express has been experiencing for the last 10-20 years.

 

[bbsam]

That's because they look at you as employee not a business. What you're experiencing is basically the same treatment Express has been experiencing for the last 10-20 years.

Possibly. Doesn’t change the fact that they aren’t attracting contractors. How long do pilot positions stay open?

 

[MAKAVELI]

Possibly. Doesn’t change the fact that they aren’t attracting contractors. How long do pilot positions stay open?

They don't. It's one of the most sought after pilot jobs in the industry. They aren't attracting contractors because they really don't value what you do. You're just a number like the rest of us employees. Now if you actually organized nationality with the unity to engage in a national strike, you might just have a little bargaining power.

 

[fedx]

Ditching the contractor model includes taking on thousands of new employees, insane amounts of additional risk and liability, and millions per year in additional admin costs.

For example, let's take 1000 FT Ground guys and make them FT FedEx employees. Their pay is going to be over $35 million. Plus benefits. Plus Social Security contributions and WC insurance. Plus other related expenses.

It may make financial sense to have hourly FedEx employees take Ground packages in certain circumstances. It makes WAY more financial sense to have contractors take Express packages.

I think most of us agree with you that it looks like the contractor model is what they're aiming for. I see FedEx becoming like UPS having both air and ground shipments on the same trucks, but they will be Ground trucks (relabeled as just "FedEx" and nothing else). They think they can save hundreds of millions of dollars each year farming out shipments to contractors. FedEx doesn't care about the bad service levels or bad reputation-all they care about is the bottom dollar they think they will be saving. They aren't looking long term. Moreover, they see Amazon having horrible delivery drivers and figure they can be just like Amazon. People are already used to bad service. It's the new normal.

 

[fedx]

Bankrupt contractors can’t fall in line with anything. That’s what FedEx is facing. Spencer has the paper trail of hundreds of contractors to prove it.

As a contractor or contractors, you guys should declare a "force majeure" to get out of your contracts before going bankrupt.

 

[bbsam]

I'm thinking Raj is hoping for a massive depression/recession and people BEGGING to work for cheap-labor.

and if I'm wrong with my terminology, sorry, but I'm sure you all know what I'm getting at.

I think you may be correct…

 

[bbsam]

I spent 13 years there. Everyone has bailed, not one single contractor in one of the numerous buildings I’ve run out of from when I started is still there.
Well… a few owner finance guys might still be coming back at some point.

I saw the writing on the wall and left the new owners to do it their way, not the proven successful way.

Btw, are you still at Ground?

 

[bbsam]

As a contractor or contractors, you guys should declare a "force majeure" to get out of your contracts before going bankrupt.

It’s not hard to get out of a contract but debt doesn’t jut evaporate.

 

[yadig]

It’s not hard to get out of a contract but debt doesn’t jut evaporate.

It does if it’s the US government

 

[MAKAVELI]

I wonder if this has anything to do with the current contractor situation.

FedEx cutting out deliveries in some markets on Sundays

People living in more rural parts of the United States may soon have to wait longer for their deliveries after FedEx announced it is cutting back its Sunday deliveries in some areas.

www.foxbusiness.com

 

[bbsam]

I wonder if this has anything to do with the current contractor situation.

FedEx cutting out deliveries in some markets on Sundays

People living in more rural parts of the United States may soon have to wait longer for their deliveries after FedEx announced it is cutting back its Sunday deliveries in some areas.

www.foxbusiness.com

It does but I doubt it has anything to do with Pattons press release. Suspension of Sunday services has been rumored for months now. It’s a huge drain on the company.

 

[Code 82 Approved]

Btw, are you still at Ground?

CS

 

[bacha29]

It does but I doubt it has anything to do with Pattons press release. Suspension of Sunday services has been rumored for months now. It’s a huge drain on the company.

The RD piranhas just ate Fat Freddy. As for Patton, his problem is that he's too big, too many routes across too many states, resulting in the need to hire a sizeable administrative staff to fulfill all of those 10 state labor, transportation. environmental laws etc that he operates in. This in turn left nothing for the guy who has to come in everyday load up all of that junk and haul it out to the right places. As a result his success rested entirely on his ability to find enough people to work the final mile for nothing.

His ego has simply gotten the best of him. His little empire is caving in all around him.

He demands an immediate 50 cent per stop and 20 cents a mile. He'll be damn lucky if he gets a nickel and two cents.

Eat it and smile Spencer Patton.

 

[FalconAss]

The RD piranhas just ate Fat Freddy. As for Patton, his problem is that he's too big, too many routes across too many states, resulting in the need to hire a sizeable administrative staff to fulfill all of those 10 state labor, transportation. environmental laws etc that he operates in. This in turn left nothing for the guy who has to come in everyday load up all of that junk and haul it out to the right places. As a result his success rested entirely on his ability to find enough people to work the final mile for nothing.

His ego has simply gotten the best of him. His little empire is caving in all around him.

He demands an immediate 50 cent per stop and 20 cents a mile. He'll be damn lucky if he gets a nickel and two cents.

Eat it and smile Spencer Patton.

Apparently he's big enough to help bring change. And you sit and stare with envy.