Ground to absorb Express

Oldfart

Well-Known Member
Having a firm grasp of what I'm discussing, and not conjuring fairy tales, is not ego. If you haven't experienced Express and the Rube Goldberg intricacies of it, you are speaking from ignorance. Be careful what you wish for. That gold you reach for just might be your kryptonite.

That 1 sentence pretty well sums up EVERY post bacha makes. Except for the posts where he cuts and paste something from a business website and then he has not idea what they mean. They just use big words and that makes him feel smart.
 

It will be fine

Well-Known Member
Sure I do. Saw two operations go to pot under the guise that it doesn't matter if the box comes to town on a plane or a truck. I never said that FedEx was my only dance partner in the package delivery industry.
My point is after it gets to the town what difference does it make if it goes to an express sprinter van to be delivered or one of my step vans. There is no difference. It makes sense for Express to handle the air aspect, the pickups, the sort, the loading etc. I'm not convinced there's anything special with the last mile delivery that couldn't be contracted out.
 

bacha29

Well-Known Member
Thanks @oldfart that unprovoked personal attack really added to the discussion.
It's the same old thing from Old Fart and Fred's Myth. They call the rest of us stupid and uninformed but their complete lack of intelligent discourse reduces them to personal attacks as well as continuing to cling desperately to their belief that Express is and always will be in a market so specialized that it will never have to adapt to a changing economic landscape or do battle with a formidable new competitor who can do anything they can do and do it a lower cost. Every scenario brought up during this discussion has merit. The only difference is timeline and cost As present and sidelined contractors who have seen a generation of continuous change that required us to hoard up huge hairballs of money in response to those changes being prepared for a dramatic and completely unforeseen turn of events is the clear distinction between a contractor and simple wage earners like friend&friend . These are two people who can function provided that change is subtle evolves slowly and have pay checks that are consistent reliable and increase steadily. You and I both know how long those two would last if they were to suddenly find themselves in the challenging world of route contracting where your only salvation is to be prepared for anything and I mean anything as you do doubt know from your own first hand experience.
 

vantexan

Well-Known Member
It's the same old thing from Old Fart and Fred's Myth. They call the rest of us stupid and uninformed but their complete lack of intelligent discourse reduces them to personal attacks as well as continuing to cling desperately to their belief that Express is and always will be in a market so specialized that it will never have to adapt to a changing economic landscape or do battle with a formidable new competitor who can do anything they can do and do it a lower cost. Every scenario brought up during this discussion has merit. The only difference is timeline and cost As present and sidelined contractors who have seen a generation of continuous change that required us to hoard up huge hairballs of money in response to those changes being prepared for a dramatic and completely unforeseen turn of events is the clear distinction between a contractor and simple wage earners like friend&friend . These are two people who can function provided that change is subtle evolves slowly and have pay checks that are consistent reliable and increase steadily. You and I both know how long those two would last if they were to suddenly find themselves in the challenging world of route contracting where your only salvation is to be prepared for anything and I mean anything as you do doubt know from your own first hand experience.
Um, Express couriers get front row seats to watch what Express management goes through every day. Most of us have no desire to do that nor are we looking to become Ground drivers if the world took a huge change for the worst. Ground could deliver Express packages if they hired on a huge amount of people but where would those people come from? The name of the game with Express is overnight delivery so you'd still have to have a huge apparatus in place to get packages to destinations too far for Ground to truck. At best FedEx might come up with some hybrid system but to say that Ground can do anything Express can do is a bit ludicrous don't you think?
 

bacha29

Well-Known Member
Um, Express couriers get front row seats to watch what Express management goes through every day. Most of us have no desire to do that nor are we looking to become Ground drivers if the world took a huge change for the worst. Ground could deliver Express packages if they hired on a huge amount of people but where would those people come from? The name of the game with Express is overnight delivery so you'd still have to have a huge apparatus in place to get packages to destinations too far for Ground to truck. At best FedEx might come up with some hybrid system but to say that Ground can do anything Express can do is a bit ludicrous don't you think?
No I wasn't talking about Ground in particular. What I was referring was a new entrant into that segment of the market While it is a capital intensive, labor intensive, regulatory intensive business and the backers of a new entrant would have to wait at least a decade for the the returns to arrive there is nothing to stop them from trying if they are able and willing to accept the start up losses that most likely would be enormous. What happened to DHL is that they lost 600 million over a two year span did have the capital sources to ride it out But a better capitalized undertaking might make it.,The Fedex air fleet isn't going anywhere. It's what takes place on the ground in the years ahead is what will be subject to review and debate.At the same time however given that Trump has clearly over promised and appears likely to badly under deliver any plans for industry deregulation will likely be scrapped by the time his presidency has reached it's conclusion.
 

Star B

White Lightening
My point is after it gets to the town what difference does it make if it goes to an express sprinter van to be delivered or one of my step vans. There is no difference.
You're right, there is no difference if you just look at the physical aspect of picking up and dropping off. The difference that looms over FedEx is the regulatory and law. FedEx needs the control that they can wield over employees. They aren't sure they can wield that kind of power over contractors.

Right now, if they wanted to make the commit time for all P1 0900, it just takes a memo, reprogramming, and manpower allocation to make it happen. With a contractor workforce, depending on how they write the contracts, it may take months to a year to fully implement it.


Additionally.... its also PR. Imagine the headlines that would roll thru the newspapers "FedEx Express lays off all employees and outsources to contractors". UPS would be quick to exclaim loud and proud "WE ARE A 100% EMPLOYEE COMPANY! TRUST US, NOT SOME SUBCONTRACTED IDIOT"

You get better PR saying "we're bringing everything in-house" vs "We're outsourcing everything to contractors".
 

dmac1

Well-Known Member
You're right, there is no difference if you just look at the physical aspect of picking up and dropping off. The difference that looms over FedEx is the regulatory and law. FedEx needs the control that they can wield over employees. They aren't sure they can wield that kind of power over contractors.

Right now, if they wanted to make the commit time for all P1 0900, it just takes a memo, reprogramming, and manpower allocation to make it happen. With a contractor workforce, depending on how they write the contracts, it may take months to a year to fully implement it.


Additionally.... its also PR. Imagine the headlines that would roll thru the newspapers "FedEx Express lays off all employees and outsources to contractors". UPS would be quick to exclaim loud and proud "WE ARE A 100% EMPLOYEE COMPANY! TRUST US, NOT SOME SUBCONTRACTED IDIOT"

You get better PR saying "we're bringing everything in-house" vs "We're outsourcing everything to contractors".

Here's alternate headlines from the same move-
1. Fedex Ground expands workforce
2. Fedex announces higher profit
3. Stockholders reward Fedex for reducing labor costs
4. Fedex saves millions by consolidating some locations
5. Fedex gains customers by offering better service guarantee on overnight service
6. Fedex expands network of small businesses serving fedex ground
7. Fedex ground service providers become more profitable with density growth
8. Fedex reduces legacy costs, ensuring a bright future
9. Fedex Express to concentrate on meeting time deadlines by transferring less sensitive overnight deliveries to Ground service providers
10. Fedex to fly more packages for fedex ground

All of this can be accomplished just by transferring a large part of express deliveries to ground for final delivery at very little expense. There's no need to completely eliminate express to accomplish this, or even any need to lay anyone off. Normal attrition over time would eliminate any massive layoff as you assumed, and this doesn't have to happen 'overnight' (pun intended).Packages to be delivered the final mile by ground could easily be sorted in Memphis, then transferred to ground terminals directly from the airport, or ground and express can operate out of the same terminals. All express pickups could still be made by fedex employees, or some could be picked up by ground, and then transferred to express to deliver to the airport if time allows.
 

vantexan

Well-Known Member
Here's alternate headlines from the same move-
1. Fedex Ground expands workforce
2. Fedex announces higher profit
3. Stockholders reward Fedex for reducing labor costs
4. Fedex saves millions by consolidating some locations
5. Fedex gains customers by offering better service guarantee on overnight service
6. Fedex expands network of small businesses serving fedex ground
7. Fedex ground service providers become more profitable with density growth
8. Fedex reduces legacy costs, ensuring a bright future
9. Fedex Express to concentrate on meeting time deadlines by transferring less sensitive overnight deliveries to Ground service providers
10. Fedex to fly more packages for fedex ground

All of this can be accomplished just by transferring a large part of express deliveries to ground for final delivery at very little expense. There's no need to completely eliminate express to accomplish this, or even any need to lay anyone off. Normal attrition over time would eliminate any massive layoff as you assumed, and this doesn't have to happen 'overnight' (pun intended).Packages to be delivered the final mile by ground could easily be sorted in Memphis, then transferred to ground terminals directly from the airport, or ground and express can operate out of the same terminals. All express pickups could still be made by fedex employees, or some could be picked up by ground, and then transferred to express to deliver to the airport if time allows.
Under current FAA rules any pkg that will be placed on an aircraft will be handled exclusively by regular employees of that company, not by employees of a sub-contractor. That's why it's important to Fred to keep Express under the RLA. If Trump does come through with deregulation I'm sure FedEx will be lobbying to allow sub-contractors' employees, properly vetted, to handle all aspects of pick-up and delivery. Express could then just be the aircraft, the pilots, the ramp employees. Otherwise you might see regular Express employees doing pickups and Ground doing deliveries. Express employees might be doing all pickups including Ground's just to reduce the confusion and hassle customers experience. And it would probably involve having both services work out of the same location to further reduce costs and expedite sorting. But until FedEx is confident it can avoid unionization through deregulation don't bet on any major overhauls.
 

bacha29

Well-Known Member
Under current FAA rules any pkg that will be placed on an aircraft will be handled exclusively by regular employees of that company, not by employees of a sub-contractor. That's why it's important to Fred to keep Express under the RLA. If Trump does come through with deregulation I'm sure FedEx will be lobbying to allow sub-contractors' employees, properly vetted, to handle all aspects of pick-up and delivery. Express could then just be the aircraft, the pilots, the ramp employees. Otherwise you might see regular Express employees doing pickups and Ground doing deliveries. Express employees might be doing all pickups including Ground's just to reduce the confusion and hassle customers experience. And it would probably involve having both services work out of the same location to further reduce costs and expedite sorting. But until FedEx is confident it can avoid unionization through deregulation don't bet on any major overhauls.
If there were to be industry deregulation legislation introduced and while it might get out of committee I doubt that Congress would get around to a vote before the midterm election But if the GOP were to lose it's majority then you might see a lot of this and similar legislation be voted on and most likely passed during a lame duck session.
 

Fred's Myth

Nonhyphenated American
It's the same old thing from Old Fart and Fred's Myth. They call the rest of us stupid and uninformed but their complete lack of intelligent discourse reduces them to personal attacks as well as continuing to cling desperately to their belief that Express is and always will be in a market so specialized that it will never have to adapt to a changing economic landscape or do battle with a formidable new competitor who can do anything they can do and do it a lower cost. Every scenario brought up during this discussion has merit. The only difference is timeline and cost As present and sidelined contractors who have seen a generation of continuous change that required us to hoard up huge hairballs of money in response to those changes being prepared for a dramatic and completely unforeseen turn of events is the clear distinction between a contractor and simple wage earners like friend&friend . These are two people who can function provided that change is subtle evolves slowly and have pay checks that are consistent reliable and increase steadily. You and I both know how long those two would last if they were to suddenly find themselves in the challenging world of route contracting where your only salvation is to be prepared for anything and I mean anything as you do doubt know from your own first hand experience.
The fact that you don't know the difference between ignorance and stupidity identifies which group you belong to.
 

whenIgetthere

Well-Known Member
You're right, there is no difference if you just look at the physical aspect of picking up and dropping off. The difference that looms over FedEx is the regulatory and law. FedEx needs the control that they can wield over employees. They aren't sure they can wield that kind of power over contractors.

Right now, if they wanted to make the commit time for all P1 0900, it just takes a memo, reprogramming, and manpower allocation to make it happen. With a contractor workforce, depending on how they write the contracts, it may take months to a year to fully implement it.


Additionally.... its also PR. Imagine the headlines that would roll thru the newspapers "FedEx Express lays off all employees and outsources to contractors". UPS would be quick to exclaim loud and proud "WE ARE A 100% EMPLOYEE COMPANY! TRUST US, NOT SOME SUBCONTRACTED IDIOT"

You get better PR saying "we're bringing everything in-house" vs "We're outsourcing everything to contractors".


had a discussion with our SM a while back, and asked him what the chances were of out station's service area becoming all AA, as we have three P1 commits (1030, 1200, 1630)due to our distance from the ramp as well as many extended areas. He said district asked him to look into it, and the conclusion was we would have to hire 18 more employees and bring in 14 more trucks. District said no, forget about it.
 

bacha29

Well-Known Member
The fact that you don't know the difference between ignorance and stupidity identifies which group you belong to.
It would appear that a taste of your own medicine is to your disliking. Well paly I'm pleased to inform you that there is plenty more where that can from because it is simply your own personal attacks coming right back at you. Now if you want to get into the conversation regarding what form the industry will take in the future what markets it will serve and how it serve them it will be appreciated but if you want to continue to live in the 1980's and think along those lines spewing out an endless barrage of personal attacks and nothing more they will continue to be responded to in kind.
 

Oldfart

Well-Known Member
It's the same old thing from Old Fart and Fred's Myth. They call the rest of us stupid and uninformed but their complete lack of intelligent discourse reduces them to personal attacks as well as continuing to cling desperately to their belief that Express is and always will be in a market so specialized that it will never have to adapt to a changing economic landscape or do battle with a formidable new competitor who can do anything they can do and do it a lower cost. Every scenario brought up during this discussion has merit. The only difference is timeline and cost As present and sidelined contractors who have seen a generation of continuous change that required us to hoard up huge hairballs of money in response to those changes being prepared for a dramatic and completely unforeseen turn of events is the clear distinction between a contractor and simple wage earners like friend&friend . These are two people who can function provided that change is subtle evolves slowly and have pay checks that are consistent reliable and increase steadily. You and I both know how long those two would last if they were to suddenly find themselves in the challenging world of route contracting where your only salvation is to be prepared for anything and I mean anything as you do doubt know from your own first hand experience.
Fella, you have called me every name in the book. Take your own advice when it comes to personal attacks.
 

dezguy

Well-Known Member
The only country regulated by the rla is the US. There are countries in which FedEx Express operates, where those employees are unionized.

Would it not make sense, if FedEx were to want to eliminate Express and shift everything over to ground to use another country as a guinea pig before trying it in their largest market, the US?

Not saying it would never happen but if it were in the cards, I think they would have tried it by now, especially in a country like France where they could break the union.
 

Oldfart

Well-Known Member
You're the one who started it, purely for the purpose of entertaining yourself never expecting it to responded to in kind.
Give it your best shot. Your insecurities show every time you post 1 of your stat filled arguments. You throw out stats and legal terms with most post and yet your knowledge is very limited. That is very obvious when you state an opinion and not just cut and paste what you read somewhere.
 

It will be fine

Well-Known Member
The only country regulated by the rla is the US. There are countries in which FedEx Express operates, where those employees are unionized.

Would it not make sense, if FedEx were to want to eliminate Express and shift everything over to ground to use another country as a guinea pig before trying it in their largest market, the US?

Not saying it would never happen but if it were in the cards, I think they would have tried it by now, especially in a country like France where they could break the union.
Ground only exists in the US and Canada. So maybe they'll try it up there first.
 

dezguy

Well-Known Member
Ground only exists in the US and Canada. So maybe they'll try it up there first.
Perhaps, but we seem to be building a lot of new stations up here and just invested in a brand new fleet of trucks just for ground to take over.

I have always said, despite what some may think, I believe things will get a lot worse for us once Fred S is gone. That day is coming but until then, I just don't see ground taking over the market Express currently occupies.
 

It will be fine

Well-Known Member
Perhaps, but we seem to be building a lot of new stations up here and just invested in a brand new fleet of trucks just for ground to take over.

I have always said, despite what some may think, I believe things will get a lot worse for us once Fred S is gone. That day is coming but until then, I just don't see ground taking over the market Express currently occupies.
Good point about Fred. I could see 10 years from now with Fred retired, organic growth slowed and a new CEO trying to keep increasing profits they might try a scheme like this.
 
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