FedEx vs UPS. How does UPS do it?

[fedx]

It's expensive to contort your business practice to avoid treating your employees equitably vs. what your competitors pay, in order to eliminate unionization that would force that equity.
"Efficiencies be damned, at least we don't have to negotiate with a union!"

I think that's the whole crux of the issue. FedEx will do anything to not have a union, like UPS has. And if you go on FB's FedEx page, you got tons of idiot employees on there who will do anything to not have a union. They will tell people "if you don't like it here, find a different job" or "at least I don't have to pay union dues" rather than understanding that they would be paid/compensated much better if they had a union. I don't think Fred needs to worry about a union ever forming because he's got a bunch of dopes working for him that are happy getting screwed over rather than have a union.

 

[Nike]

What about those fancy Mercedes Benz trucks Fedex be driving around? Seems pretty high brow and high maintenance for a delivery truck.

 

[Operational needs]

What about those fancy Mercedes Benz trucks Fedex be driving around? Seems pretty high brow and high maintenance for a delivery truck.

Agree. And the mechanics hate them. They’re not made for in and out all day.

 

[Operational needs]

I think that's the whole crux of the issue. FedEx will do anything to not have a union, like UPS has. And if you go on FB's FedEx page, you got tons of idiot employees on there who will do anything to not have a union. They will tell people "if you don't like it here, find a different job" or "at least I don't have to pay union dues" rather than understanding that they would be paid/compensated much better if they had a union. I don't think Fred needs to worry about a union ever forming because he's got a bunch of dopes working for him that are happy getting screwed over rather than have a union.

Don’t they make you nauseous? lol.

 

[bacha29]

I think that's the whole crux of the issue. FedEx will do anything to not have a union, like UPS has. And if you go on FB's FedEx page, you got tons of idiot employees on there who will do anything to not have a union. They will tell people "if you don't like it here, find a different job" or "at least I don't have to pay union dues" rather than understanding that they would be paid/compensated much better if they had a union. I don't think Fred needs to worry about a union ever forming because he's got a bunch of dopes working for him that are happy getting screwed over rather than have a union.

The dopes you mentioned are the guys who have made numerous trips to the Fedex Mind Control And Reeducation Academy and truly love it especially the waterboarding . They can't get enough of it and mark the days off on the calendar until they can go back and puff the corporate peter.

 

[59 Dano]

There are a million things that influence stock price and trying to pinpoint what makes it good/bad on a message board is a waste of time.

 

[59 Dano]

Honestly, I’m okay with what Fred makes, after all, he founded the company and took all the risks, plus he pushes hard for FedEx. What I have a problem with is what the executives under him make.

I'm curious - why do you have a problem with their salaries?

 

[59 Dano]

The dopes you mentioned are the guys who have made numerous trips to the Fedex Mind Control And Reeducation Academy and truly love it especially the waterboarding . They can't get enough of it and mark the days off on the calendar until they can go back and puff the corporate peter.

For someone who never worked for Express, your confidence in your knowledge of Express is impressive. Hilarious, but impressive.

 

[Operational needs]

I'm curious - why do you have a problem with their salaries?

For example, the guy who is the CIO. He makes lots of money, for what? He couldn’t prevent the virus that hit FedEx, DRA is a joke, FedEx computers are sooo slow, they're rolling out the LEO machines(?) and they’re already having problems, IR ports stop working regularly. I’m sure I’ll think of other things but that’s just off the top of my head.

 

[vantexan]

If you want FedEx to pay you what UPS pays it has to do either of two things. Either charge a lot more, which with competition pressures it won't, or become just like UPS in how it conducts business. FedEx is the dominant player in overnight delivery. Most of it's freight is flown. Costs a lot to keep those planes flying. If FedEx was entirely like Ground it would be very profitable, more so than UPS. But overnight delivery is it's core business. UPS trucks a much greater percentage of freight than FedEx. So if FedEx ran itself like UPS, mostly trucked freight with some overnight, it could pay you more. But then the overnight market would be underserved. But at least you'd have the opportunity to complain about the high pay and great benefits like many UPS folk do!

 

[vantexan]

Already did. @Operational needs already covered it but 1.2 mil salary. About 15 mil total compensation

Fred makes about 16 mil in total compensation

Isn't most of his compensation from stock dividends?

 

[59 Dano]

For example, the guy who is the CIO. He makes lots of money, for what? He couldn’t prevent the virus that hit FedEx, DRA is a joke, FedEx computers are sooo slow, they're rolling out the LEO machines(?) and they’re already having problems, IR ports stop working regularly. I’m sure I’ll think of other things but that’s just off the top of my head.

OK, that's one guy. To address your specific concerns, no company is immune to viruses; DRA hasn't lived up to expectations; slow networks aren't going to be cured overnight; it's unreasonable to expect a new technology to hit the street without bugs. Not that any of that matters.

Why do you have problems with the salaries for FedEx execs in general?

 

[Operational needs]

OK, that's one guy. To address your specific concerns, no company is immune to viruses; DRA hasn't lived up to expectations; slow networks aren't going to be cured overnight; it's unreasonable to expect a new technology to hit the street without bugs. Not that any of that matters.

Why do you have problems with the salaries for FedEx execs in general?

I guess the biggest reason is the hypocrisy of it. We hear constantly about how little per package FedEx makes while also telling us we need to cut here, cut there. All doom and gloom on the “front lines”, while our benefits and pay are being chipped away, but they’re still getting their bonuses and still flying around on corporate jets and showing up to locations with an entourage like they’re the President. Front line managers can’t get their bonuses or raises, but the executive always get theirs. I’ve seen managers at work 15, 16 hours some days, trying to keep up the morale at stations while having one hand tied behind their back, but they can’t get a raise or bonus??? That’s just crazy.

 

[Brownslave688]

Isn't most of his compensation from stock dividends?

Which the company pays out of its profits....

 

[Operational needs]

OK, that's one guy. To address your specific concerns, no company is immune to viruses; DRA hasn't lived up to expectations; slow networks aren't going to be cured overnight; it's unreasonable to expect a new technology to hit the street without bugs. Not that any of that matters.

Why do you have problems with the salaries for FedEx execs in general?

Oh, and the networks have ALWAYS been slow since I started working at Fedex. I just remembered another thing....Workday. Whose bright idea was it to implement that? It’s such a crappy program that everyone, management and hourly agrees it’s a joke. Why did they complicate something as simple as JCATS? Was the intention to try to deter people from transferring?

 

[IVE GOTTA PACKAGE 4U]

Which the company pays out of its profits....

They do it they way because it's an IRS loophole. Shocking I know.

A company can only write off a million dollars in CEO salary but I'm pretty sure their is no limit on stock options.

 

[vantexan]

If you want FedEx to pay you what UPS pays it has to do either of two things. Either charge a lot more, which with competition pressures it won't, or become just like UPS in how it conducts business. FedEx is the dominant player in overnight delivery. Most of it's freight is flown. Costs a lot to keep those planes flying. If FedEx was entirely like Ground it would be very profitable, more so than UPS. But overnight delivery is it's core business. UPS trucks a much greater percentage of freight than FedEx. So if FedEx ran itself like UPS, mostly trucked freight with some overnight, it could pay you more. But then the overnight market would be underserved. But at least you'd have the opportunity to complain about the high pay and great benefits like many UPS folk do!

To go further, if FedEx was just like UPS there would be head to head competition with the lowering of prices to stay competitive/get a competitive edge. So neither would be able to pay as much as UPS does now. And since both would be unionized you'd see strikes as well as the rise of competition from smaller companies. The only way FedEx really gets it over on UPS is with the current Ground model. Want better pay? Go into management or go work at UPS.

 

[vantexan]

Which the company pays out of its profits....

To all stockholders. As Mel Brooks once said "it's good to be the king."

 

[It will be fine]

For example, the guy who is the CIO. He makes lots of money, for what? He couldn’t prevent the virus that hit FedEx, DRA is a joke, FedEx computers are sooo slow, they're rolling out the LEO machines(?) and they’re already having problems, IR ports stop working regularly. I’m sure I’ll think of other things but that’s just off the top of my head.

They could have prevented the virus they are blaming by updating the software they were running. They chose to continue operating with an old vulnerable OS. They paid dearly for that choice. Shrugging and saying nobody could have seen it coming is a pathetic excuse.

 

[Brownslave688]

They do it they way because it's an IRS loophole. Shocking I know.

A company can only write off a million dollars in CEO salary but I'm pretty sure their is no limit on stock options.

Absolutely. Everything in new compensation my wife has been offered the last few years has been in bonuses.

I always tell her well there’s a reason for that.