Ground to absorb Express

[bbsam]

We are to the point of market saturation. Anything we gain will be offset with those switching to digital methods.

Here's how I see it playing out:

1) Express loses RLA protection. They say "to hell with it" and then absorb ground into Express. Allow the Ground employees to become Express to handle the new influx of routes.

2) Status Quo.

3) Express turns into "FedEx Feeder Network", keeps FO a ramp service, and then CTVs all freight to FedEx Orange, friend/K/A Ground. This is after FedEx can figure out how to control contractors even more in light of new deregulation due to Trump.

4) The SO/XS shiftover to Ground. Least plausible as @MAKAVELI said... as FXE has enough routes that spend 100 miles driving delivering 10 packages. They dont need more.

Absorbing Ground into Express would see them unionized almost overnight.

 

[MAKAVELI]

Absorbing Ground into Express would see them unionized almost overnight.

You underestimate FedEx's union busting prowess. Just look at FedEx Freight. They are under NLRA not RLA.

 

[McFeely]

Shippers are already getting discounts that rival the prices that ground can offer. Why do you think we have so much XS?

Bingo. When you see a 125# trampoline or crappy particle-board furniture coming thru the Express network, you know we're not charging Walmart or Amazon near enough. Think about what it would cost a regular customer off the street to ship a 125# trampoline via 2-day shipping. It would be insane!

 

[bbsam]

You underestimate FedEx's union busting prowess. Just look at FedEx Freight. They are under NLRA not RLA.

Fedex Freight has it far, far better than Express or Ground.

 

[MAKAVELI]

Fedex Freight has it far, far better than Express or Ground.

The only thing I can see they have better is their time to top out. But most of their top pay scales are still less than Express and they have the same crappy benefits we do at express.

 

[Star B]

Absorbing Ground into Express would see them unionized almost overnight.

If we lost the RLA tomorrow... That's why they would give up the whole shenanigans of two seperate opcos. I guarantee that the organizing drive would start immediately. To what success... I'll point again to @MAKAVELI... FXF isn't even organized.

Think about what it would cost a regular customer off the street to ship a 125# trampoline via 2-day shipping. It would be insane!

P2
0-150MI 157.50
151-300MI 180.00
Zone 8: 1501+MI 622.00

Plus oversized charge if over 130in.. $72.50

 

[vantexan]

The only thing I can see they have better is their time to top out. But most of their top pay scales are still less than Express and they have the same crappy benefits we do at express.

You sure about their pay? Knew a freight guy from Tucson who was doing pretty well.

 

[MAKAVELI]

You sure about their pay? Knew a freight guy from Tucson who was doing pretty well.

I believe they top out in 3 years but their top pay scales are in general lower than ours. They have the same friend up market based scales we do. But even at $25 hour you can do pretty well in Tucson. Very low cost of living.

 

[Fred's Myth]

It would appear that you are just another big ego Express grunt who badly overestimates your value to the company and blind to the cold fact that they can dispose of you in a heartbeat and there's very little you can do about it.

That would put us on the same footing, if it weren't for the fact I'm in countdown mode and anticipating the view from my rear view mirror in short order.

 

[dezguy]

Absorbing Ground into Express would see them unionized almost overnight.

We're not under RLA and the Teamsters still failed to unionize all but one group of office workers in Ontario, somewhere.

 

[bacha29]

Absorbing Ground into Express would see them unionized almost overnight.

Fat Freddy will never again sign a union contract. If the RLA is abolished X will use every stalling tactic in it's litigation tool bag to fend off efforts to organize while it restructures operations .In the meantime all that can be done is to wait and see what the Trump administration has in store regarding deregulation and whether or not the RLA is included.

 

[SmithBarney]

Commit times are by zip code based on a radius from the center/station.

Not entirely true, most of the time yes, I know of areas that have 1200 Commit, that are completely surrounded by 1030. Yes it's zip code based, but not always based on radius.

 

[SmithBarney]

NO worries, nothing major to implement, Express will run as it is. The express corp will still handle the packages, you'll still be in the same building.. you'll just have a "NEW" boss, and your checks if you choose to stay will come from that new BOSS... Contractors will "lease" space in existing FEDEX EXPRESS stations, and "purchase" existing vehicles. Your pay will be frozen where it is, forever. Insurance will go 100% self pay(it already is)

 

[OrioN]

Too much speculation, it's not gonna happen. At least Not in our lifetimes

P2
0-150MI 157.50
151-300MI 180.00
Zone 8: 1501+MI 622.00

Plus oversized charge if over 130in.. $72.50

Geezus, so what's the discounted rate from wallyworld?

A customer asked me why did her Wal-Mart delivery took 8 days instead of the tv-advertised 2 day free shipping.

I replied to her did she verified if the item she got was qualified for it, i.e. lithium ion batteries generally gets ground shipping or else you'll see too many "castaway" scenarios with them exploding in flight...

https://upload.wikimedia.org/wikipedia/en/friend/fb/Wilson_The_Volleyball.jpg

 

[McFeely]

Geezus, so what's the discounted rate from wallyworld?

I would bet FX charges just enough to keep the plane full and pay for the fuel and pretty much nothing more. There's no way WalMart is paying anywhere near $157 to ship those trampolines that come thru the Express system.

 

[bacha29]

NO worries, nothing major to implement, Express will run as it is. The express corp will still handle the packages, you'll still be in the same building.. you'll just have a "NEW" boss, and your checks if you choose to stay will come from that new BOSS... Contractors will "lease" space in existing FEDEX EXPRESS stations, and "purchase" existing vehicles. Your pay will be frozen where it is, forever. Insurance will go 100% self pay(it already is)

Your scenario is the most credible one I've seen yet. Express employees will be given an opportunity to become contractors. And as you say purchase existing vehicles and routes. If there are time constraints to make the conversion this would appear to be the quickest and easiest way especially if the existing employee already has the necessary security clearances. They could also hire a third party logistics company to manage the conversion and the new contractor could decide afterward if he wants to employ that company to handle regulatory matters in his of her behalf. Question will be as always command and control. If X tries to strictly control the means , manner and method similar to what they have always tried to do with Ground similar legal challenges will doubt be launched soon afterward.

 

[Gone fishin]

Well they better fix things quick. The stocks down to 193 and just got upgraded to a buy from BMO capital. Hope we can keep the lights on

 

[MAKAVELI]

Your scenario is the most credible one I've seen yet. Express employees will be given an opportunity to become contractors. And as you say purchase existing vehicles and routes. If there are time constraints to make the conversion this would appear to be the quickest and easiest way especially if the existing employee already has the necessary security clearances. They could also hire a third party logistics company to manage the conversion and the new contractor could decide afterward if he wants to employ that company to handle regulatory matters in his of her behalf. Question will be as always command and control. If X tries to strictly control the means , manner and method similar to what they have always tried to do with Ground similar legal challenges will doubt be launched soon afterward.

You really are grasping at straws bro. The legal challenges at Express to convert over to contractors would be 10 times what they had with ground.

 

[bacha29]

You really are grasping at straws bro. The legal challenges at Express to convert over to contractors with me 10 times what they had with ground.

Going forward it's all just a waiting game. Waiting to see if rate pressure requires looking at a lower cost alternative. Waiting to see if the RLA is abolished as part of Trump's plan to deregulate American business. Waiting to see what Bezos has up his sleeve. Waiting to see what happens to the global economy. I believe that most of these issues will come into clearer focus in 1-2 years.

 

[MAKAVELI]

Going forward it's all just a waiting game. Waiting to see if rate pressure requires looking at a lower cost alternative. Waiting to see if the RLA is abolished as part of Trump's plan to deregulate American business. Waiting to see what Bezos has up his sleeve. Waiting to see what happens to the global economy. I believe that most of these issues will come into clearer focus in 1-2 years.

I don't think abolishing the rla is exactly what Drumpf had in mind as far as deregulation.