Is FedEx Scrambling for ideas?

zeev

Well-Known Member
Ever actually read a FXG contractor contract? There's not a single term or condition in that contract that is binding upon FXG. What makes it even worse is that there's no governing legal authority with enforcement power over those contract terms. In other words it isn't worth the paper it's written on. Allowing FXG to do whatever they damn well please to both contractor and contractor employees.

The employees of an FXG contractor do have the legal right to vote in union representation. Only trouble is the moment they did that FXG would cancel the contract.
That Route Consultant video admitted that the contract can be changed at any time. Of course they said FedEx would never change the contract to the point where you couldn’t make any money. A quick search of YouTube would reveal that Spencer Patton made many appearances stating just the opposite by withholding fuel surcharge
 

It will be fine

Well-Known Member
It's those Owners of the Ground routes that make it terrible for the Workers and the Customers. They exercise absolute control over their subordinates to the point of harassment and then when something goes wrong, they go ballistic and blame everyone except themselves. I guess you have to be a liberal to qualify as an Owner. I've talked to a few Drivers and they all despise their Dictator.
What a bizarre ignorant take. Contractors exercise too much control over their drivers is not an argument I’ve ever heard before.
 

whenIgetthere

Well-Known Member
I can’t believe how bad UPS employees talk about Fedex employees on this form. Division it is the American way now. I work for Express retiring in 2 days, decision made prior to the merger announcement. UPS drivers in my small town, Silver City NM, DO WORK way harder than I do. UPS drivers here have never been friendly to me, but one and he use to work for Express. One UPS driver at the same stop I was at told the customer I was :censored2:, right there in front of me, not knowing anything about me. Not sure why UPS drivers have axes to ground with Express, but won’t have to worry in two days.
Never had a problem with UPS, DHL or Ground drivers.
 

Lineandinitial

Legio patria nostra
What a bizarre ignorant take. Contractors exercise too much control over their drivers is not an argument I’ve ever heard before.
Since you dominate the corner on bizarre ignorance, you would know.
Does the fact that your employees think of you as an arrogant dictator bother you?

I thought you blocked me?
 

It will be fine

Well-Known Member
That Route Consultant video admitted that the contract can be changed at any time. Of course they said FedEx would never change the contract to the point where you couldn’t make any money. A quick search of YouTube would reveal that Spencer Patton made many appearances stating just the opposite by withholding fuel surcharge
They said they wouldn’t alter the contract to eliminate equity. FedEx doesn’t really care if we’re profitable. If they destroy the equity then there won’t be anyone to take over contracts. You can weather a bad cash flow year, but if you can’t sell the company there wouldn’t be a reason to. I’m less confident that FedEx understands this than RC is.
 

vantexan

Well-Known Member
I can’t believe how bad UPS employees talk about Fedex employees on this form. Division it is the American way now. I work for Express retiring in 2 days, decision made prior to the merger announcement. UPS drivers in my small town, Silver City NM, DO WORK way harder than I do. UPS drivers here have never been friendly to me, but one and he use to work for Express. One UPS driver at the same stop I was at told the customer I was :censored2:, right there in front of me, not knowing anything about me. Not sure why UPS drivers have axes to ground with Express, but won’t have to worry in two days.
Were you there when Steve used to bring freight out from Las Cruces? That was about 2001 if I remember right? Think his name was Steve. Older guy, got fired after his daughters were in a serious car accident.
 

zeev

Well-Known Member
They said they wouldn’t alter the contract to eliminate equity. FedEx doesn’t really care if we’re profitable. If they destroy the equity then there won’t be anyone to take over contracts. You can weather a bad cash flow year, but if you can’t sell the company there wouldn’t be a reason to. I’m less confident that FedEx understands this than RC is.
Wouldn’t profitably effect the equity of the contract.
 

It will be fine

Well-Known Member
Wouldn’t profitably effect the equity of the contract.
Absolutely. A big issue the new contract changes put in was changing the definition of our geographic areas. The new language says FedEx can change our boundaries whenever they want. This was concerning to many contractors. The reality is FedEx could always do that, they just clarified it.

FedEx does underestimate the current lack of profitability. They have contractors walk away, pay a contingency team 3 times the rates to cover it, give the contract to a new guy paying the old rates, wait 6 months for him to walk away and go back to the contingency team. A nearby state has been operating like this for years. They could just pay a regular contractor 1.25 to 1.5 times the old rate, they’d be profitable with growing equity and FedEx would get better service. It’s nonsense like that that makes me skeptical that FedEx really understands what drives their model.
 

yadig

Well-Known Member
Absolutely. A big issue the new contract changes put in was changing the definition of our geographic areas. The new language says FedEx can change our boundaries whenever they want. This was concerning to many contractors. The reality is FedEx could always do that, they just clarified it.

FedEx does underestimate the current lack of profitability. They have contractors walk away, pay a contingency team 3 times the rates to cover it, give the contract to a new guy paying the old rates, wait 6 months for him to walk away and go back to the contingency team. A nearby state has been operating like this for years. They could just pay a regular contractor 1.25 to 1.5 times the old rate, they’d be profitable with growing equity and FedEx would get better service. It’s nonsense like that that makes me skeptical that FedEx really understands what drives their model.
That’s how they like to do business. I swear they love a revolving door of employees/contractors, It makes no sense to me.
 

DustyInSilver

New Member
Were you there when Steve used to bring freight out from Las Cruces? That was about 2001 if I remember right? Think his name was Steve. Older guy, got fired after his daughters were in a serious car accident.
Yess I worked with Steve. He did not get fired, he got a dui put in the office then back on the road later. He retired, that same daughter died, I went to the funeral. Steve retired from Fedrx
 

bacha29

Well-Known Member
Take your own advise, MOVE ON!!!!!
Tell me something. Are you currently or have ever been an FXG contractor?
I was.... going back to formative days of Roadway Package System.
The inequities of the contract back then still continues to this very day. In fact the base design of it is still the same damn thing The difference between then and now is that back then very little money was required up front. "Hasta La Vista, Baby" was simple and easy. Secondly, Roadway Package System stayed within it's two market objectives. To supply Roadway's LTL operations while staying within it's strictly business to business market.

Now look what happened and is continuing to happen today.

Prime Weasel gets a hold of it. Didn't have cash to buy it Had to issue more shares. Pushes it into expanded markets without ever considering whether or not the contractor model was ever designed for it....it wasn't. But that never stopped him.

And now he's pushing them into the next day air market . For contractors operating in depressed rural areas all it will mean is even more bone jarring truck destroying miles across woefully substandard roads at speeds and across bridges higher than rated . Cutting rates and settlements, straight edge shaving contractor margins down to nothing conscripting them to areas that never will be profitable demanding ever larger at risk capital commitments right along with his same...."Here it is mother fornicators. I've got you trapped so eat it and smile" attitude he's always had.

So tell us about your experiences.
 

Fred's Myth

Nonhyphenated American
Tell me something. Are you currently or have ever been an FXG contractor?
I was.... going back to formative days of Roadway Package System.
The inequities of the contract back then still continues to this very day. In fact the base design of it is still the same damn thing The difference between then and now is that back then very little money was required up front. "Hasta La Vista, Baby" was simple and easy. Secondly, Roadway Package System stayed within it's two market objectives. To supply Roadway's LTL operations while staying within it's strictly business to business market.

Now look what happened and is continuing to happen today.

Prime Weasel gets a hold of it. Didn't have cash to buy it Had to issue more shares. Pushes it into expanded markets without ever considering whether or not the contractor model was ever designed for it....it wasn't. But that never stopped him.

And now he's pushing them into the next day air market . For contractors operating in depressed rural areas all it will mean is even more bone jarring truck destroying miles across woefully substandard roads at speeds and across bridges higher than rated . Cutting rates and settlements, straight edge shaving contractor margins down to nothing conscripting them to areas that never will be profitable demanding ever larger at risk capital commitments right along with his same...."Here it is mother fornicators. I've got you trapped so eat it and smile" attitude he's always had.

So tell us about your experiences.
Thank you, Paul Revere, for your editorial opinion.

But Spam was spot on!
 

UnionStrong

Sorry, but I don’t care anymore.
Tell me something. Are you currently or have ever been an FXG contractor?
I was.... going back to formative days of Roadway Package System.
The inequities of the contract back then still continues to this very day. In fact the base design of it is still the same damn thing The difference between then and now is that back then very little money was required up front. "Hasta La Vista, Baby" was simple and easy. Secondly, Roadway Package System stayed within it's two market objectives. To supply Roadway's LTL operations while staying within it's strictly business to business market.

Now look what happened and is continuing to happen today.

Prime Weasel gets a hold of it. Didn't have cash to buy it Had to issue more shares. Pushes it into expanded markets without ever considering whether or not the contractor model was ever designed for it....it wasn't. But that never stopped him.

And now he's pushing them into the next day air market . For contractors operating in depressed rural areas all it will mean is even more bone jarring truck destroying miles across woefully substandard roads at speeds and across bridges higher than rated . Cutting rates and settlements, straight edge shaving contractor margins down to nothing conscripting them to areas that never will be profitable demanding ever larger at risk capital commitments right along with his same...."Here it is mother fornicators. I've got you trapped so eat it and smile" attitude he's always had.

So tell us about your experiences.
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vantexan

Well-Known Member
Yess I worked with Steve. He did not get fired, he got a dui put in the office then back on the road later. He retired, that same daughter died, I went to the funeral. Steve retired from Fedrx
Glad that worked out. He told me they were firing him. Probably the circumstances made them reconsider. I was domiciled in Deming at the time but left without knowing how that played out. Many years later I was domiciled for a year in Safford, AZ. Really like that region. Would've stayed in Deming but management was doing things I had never seen before or since and I chose to get out rather than get them fired or demoted. They ended up getting fired and demoted anyways.
 

bbsam

Moderator
Staff member
Absolutely. A big issue the new contract changes put in was changing the definition of our geographic areas. The new language says FedEx can change our boundaries whenever they want. This was concerning to many contractors. The reality is FedEx could always do that, they just clarified it.

FedEx does underestimate the current lack of profitability. They have contractors walk away, pay a contingency team 3 times the rates to cover it, give the contract to a new guy paying the old rates, wait 6 months for him to walk away and go back to the contingency team. A nearby state has been operating like this for years. They could just pay a regular contractor 1.25 to 1.5 times the old rate, they’d be profitable with growing equity and FedEx would get better service. It’s nonsense like that that makes me skeptical that FedEx really understands what drives their model.
I think I know the state you’re talking about and it seems that there’s a contractor war in approaching full meltdown.

A new guy with money to burn walked in and stole/lured away about 10 drivers from a contractor. Shortly thereafter, the company is paying contingency rates to the new contractor to run the previous contractor’s area.

Theoretically FedEx can’t tell drivers what contractor to work for, but it’s definitely something I think they’re going to clamp down on soon and in a decisive manner.
 

bacha29

Well-Known Member
I think I know the state you’re talking about and it seems that there’s a contractor war in approaching full meltdown.

A new guy with money to burn walked in and stole/lured away about 10 drivers from a contractor. Shortly thereafter, the company is paying contingency rates to the new contractor to run the previous contractor’s area.

Theoretically FedEx can’t tell drivers what contractor to work for, but it’s definitely something I think they’re going to clamp down on soon and in a decisive manner.
Yours is just one among many thousands of examples of how Fat Freddy plays contractors off against one another. When you combine the treachery, the deception, the betrayal , the lies with what you guys are saying is rapidly dissipating profitability along with it the pool of quality labor it makes it quite clear that the window for a clean exit under favorable terms is closing.
 
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