Is FedEx legally obligated to negotiate in good faith with their contractors?

bbsam

Moderator
Staff member
Indeed. Every current contractor as well as those who think they want to be one has to decide for themselves just how much money they're willing to place at risk for the sake of a venture for which asset and equity growth is not the purpose or objective and is plainly stated as such. Whether you sell your contract for $1,000,000 or....$8.44 is an outcome Fedex will decide.
Granted , there will be a few who will come out ahead but that number will likely shrink in the coming days as contractors scramble to find enough boxes and people willing to work weekends and holidays year round for low wages and zero benefits. And along with it will come fewer interested buyers willing to pay more than "take it off your hands" money to acquire a contract.

Why do you see doom and gloom this time? We’ve never been busier and I’ve never found it so easy to find drivers.
 

bacha29

Well-Known Member
Why do you see doom and gloom this time? We’ve never been busier and I’ve never found it so easy to find drivers.
You're one of the lucky ones with a labor market that still favors you. Not the case everywhere as evidenced by the job board ads placed by desperate contractors. Some are even on social media trying to find people. In any event finding dependable people willing to work weekends on a continuous weekly basis won't be quite so easy
 

bbsam

Moderator
Staff member
You're one of the lucky ones with a labor market that still favors you. Not the case everywhere as evidenced by the job board ads placed by desperate contractors. Some are even on social media trying to find people. In any event finding dependable people willing to work weekends on a continuous weekly basis won't be quite so easy
We use social media. Not sure why you see that as desperate. That’s how ya find drivers in 2019.
 

bacha29

Well-Known Member
Apparently he sees the coming growth as a bad thing for business. There’s a reason he was always a single van operator.
A s I've said in the past you're only as good as the strength of the economy of the area in which you operate and have a favorable labor market as well as the fact that XG is a NATIONWIDE carrier. I have already been approached about working weekends holidays and peak . My response...."Don't call me child. I'll call you. After all you wanted in there badly enough and you cannot ASSUME that somebody's going to show up everyday and go out there and bust their *ss for nothing and you cannot MAKE them do it."
 

OrioN

double tap o da horn dooshbag
Yup, my area is a competitive market.

Last summer, those who can't adapt to the single system of FXG walked out and it took until late October to find competent drivers.

This summer, same experience... they're supposed to ramp up with hiring peak season drivers now, not in November
 

bacha29

Well-Known Member
Yup, my area is a competitive market.

Last summer, those who can't adapt to the single system of FXG walked out and it took until late October to find competent drivers.

This summer, same experience... they're supposed to ramp up with hiring peak season drivers now, not in November
Spot on man. And the disparity between the value demanded of the driver and what is being offered to him in return by the contractor is not going to get any narrower thus increasing the likelihood of fewer people willing to accept that growing pay disparity. Not to mention the fact that everyday in this country an average of 10,000 boomers go marching off into retirement and creating more job openings.
It explains in part why I and the other Day1's refused to up size. We decided against putting more money at risk when too many unfavorable factors over which we had no control existed. And the ones who stayed and up sized at my terminal came to regret ignoring those factors including the war of contractor attrition.
By being in the rental property business you have control over many more critical factors surrounding the business .
 

59 Dano

I just want to make friends!
There’s a reason he was always a single van operator.

It explains in part why I and the other Day1's refused to up size. We decided against putting more money at risk when too many unfavorable factors over which we had no control existed. And the ones who stayed and up sized at my terminal came to regret ignoring those factors including the war of contractor attrition.

He's just too darn smart for the suits, that's why he was always a single van operator!
 

bacha29

Well-Known Member
He's just too darn smart for the suits, that's why he was always a single van operator!
Yep, smart enough to know that the Ground ISP model was not suited for every part of the country . It was built on too many assumptions among them the assumption that the economy and demographics of every section of the nation would continue to grow and expand as well as the supply of cheap productive and drug free labor. It simply does not exist in every part of the country yet XG is a nationwide carrier serving EVERY zip code. Of the 8 people at my terminal who up sized to multi route 6 were broke and gone in two years or less.
 

vantexan

Well-Known Member
Yep, smart enough to know that the Ground ISP model was not suited for every part of the country . It was built on too many assumptions among them the assumption that the economy and demographics of every section of the nation would continue to grow and expand as well as the supply of cheap productive and drug free labor. It simply does not exist in every part of the country yet XG is a nationwide carrier serving EVERY zip code. Of the 8 people at my terminal who up sized to multi route 6 were broke and gone in two years or less.
Is that area doing better now?
 

bacha29

Well-Known Member
Is that area doing better now?
They've had a little bit of growth thanks to E commerce but what it does it exposes the contractor to even more slow going RD carrier miles with not a lot in the way of increased volume density.Just more miles Not to mention the private access paths not roads. Home made bridges built out o 2X6's, logging trails, abandoned strip mines gas line right of ways. This is where they stuck their trailers and double wide's thanks to free gas. It's slow going and very hard on equipment if you try to do much more than 15-20 MPH. News that they would be delivering Smart Post was met with a collective groan.
 

OrioN

double tap o da horn dooshbag
They've had a little bit of growth thanks to E commerce but what it does it exposes the contractor to even more slow going RD carrier miles with not a lot in the way of increased volume density.Just more miles Not to mention the private access paths not roads. Home made bridges built out o 2X6's, logging trails, abandoned strip mines gas line right of ways. This is where they stuck their trailers and double wide's thanks to free gas. It's slow going and very hard on equipment if you try to do much more than 15-20 MPH. News that they would be delivering Smart Post was met with a collective groan.

How long did your tires last?

I wore thru new USA made tires in 4 months! Mechanic gave me some China made tires this time... I'll probably be due for another set by November
 

floridays

Well-Known Member
You're one of the lucky ones with a labor market that still favors you. Not the case everywhere as evidenced by the job board ads placed by desperate contractors. Some are even on social media trying to find people. In any event finding dependable people willing to work weekends on a continuous weekly basis won't be quite so easy
I think life has beaten you up more than anyone I've had to the opportunity to observe.
And you're a white guy, one of the privileged?
 

bacha29

Well-Known Member
How long did your tires last?

I wore thru new USA made tires in 4 months! Mechanic gave me some China made tires this time... I'll probably be due for another set by November
2-3 tire changes per vehicle per year. Recaps? Throwing your money away. Chinese tires? Half the price, half the wear. In addition we went through king pins, ball joints. stabilizers,A arms, leaf springs and saddles, center pins and mirrors etc at a mind boggling rate.
 

bacha29

Well-Known Member
Bacha: There’s not enough work in them thar hills to make any money!

Also Bacha: They gonna increase volume by 20% over the next year! Hows we gonna deliver dat?
That's the question the 2 or 3 remaining contractors are asking themselves. Even if the PROJECTED 20% does occur it doesn't necessarily mean that it will translate into increased volume density proportionate to the increased miles and overall inputs. In other words there's no guarantee that it will mean more profit. In fact your own comments expressed a similar worry and there you are in the Boston Metro area. One of the most population dense areas in the country.
 
When I bought mine a while back. I gained access to every weekly settlement for two years and discovered they had sold a PSA almost 1 year prior. I was able to use that to deduct an additional $100k off what we originally agreed upon.
Every business you need to really dive into numbers but in regards to FedEx contracting, you better go in like a CPA!!
 
When I bought mine a while back. I gained access to every weekly settlement for two years and discovered they had sold a PSA almost 1 year prior. I was able to use that to deduct an additional $100k off what we originally agreed upon.
Every business you need to really dive into numbers but in regards to FedEx contracting, you better go in like a CPA!!
Could you explain this a bit more? You deducted that amount from what? You mentioned that you held your routes for a while and they were profitable, I’m trying to understand why people are selling so quickly after buying if they are so profitable. I’m seeing many for sale that have only been owned by the seller for a year or so, yet post cash positive profit to the owner of often 15 to 20 percent which is a compelling investment to own and operate. Your posts are extremely informative, thank you for participating on this forum!
 
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