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59 Dano

I just want to make friends!
Ever hear of something called early retirement package? Or how about a thing called layoffs? Do you actually think that so called " 35 hour guarantee" is actually binding? As any individual who has been involved with Ground will tell you.When it comes to Fedex........NOTHING"S BINDING.

Nice mock draft, bro.
 

vantexan

Well-Known Member
Ever hear of something called early retirement package? Or how about a thing called layoffs? Do you actually think that so called " 35 hour guarantee" is actually binding? As any individual who has been involved with Ground will tell you.When it comes to Fedex........NOTHING"S BINDING.
Absolutely nothing you're speculating about is happening. Until it does, if ever, I'll just deal with it then. The only one seeming to be getting into a frenzy about it is, well, you. Why is that?
 

sandwich

The resident gearhead
The ISP will be paid more for delivering express, and either pay the current drivers more, or hire more drivers to keep the workload reasonable. The ISP does not have a fixed daily pay from Fedex. Since the ISP is paid more, if the drivers need more time to deliver, they will be paid more. Very few ISPs want their drivers unhappy so they will in most cases increase compensation to the driver as the workload increases. I know I paid my drivers more if they went over and above the normal daily volume even though I also paid a set daily rate.

You don't need to raise the hourly rate to UPS levels if you ask your driver to work an extra hour, or if you hire an additional driver to spread the load out. It is just ridiculous to think you'll suddenly need to raise wage from around $12 an hour to UPS level.
What if FedEx tells you they won't pay you more but gives you the express volume any way. Just like you would do to your drivers.
 

It will be fine

Well-Known Member
What if FedEx tells you they won't pay you more but gives you the express volume any way. Just like you would do to your drivers.
That would be more likely. They don't pay us anything extra for appointment or evening deliveries. They wouldn't pay us anything extra for 2 or 3 day service packages. For overnight they would just make an incentive so they could charge us obscene amounts for any lates. Their argument would be "we'll pay you the same rates as ground but your stop density will increase so you'll make more."
 

sandwich

The resident gearhead
That would be more likely. They don't pay us anything extra for appointment or evening deliveries. They wouldn't pay us anything extra for 2 or 3 day service packages. For overnight they would just make an incentive so they could charge us obscene amounts for any lates. Their argument would be "we'll pay you the same rates as ground but your stop density will increase so you'll make more."
Yes exactly and late air will happen. A little too often. But there is so much to it. There is so much more stress when you have time committed packages in the morning and at the end of the day. Not only will your guys have to double trip their entire route to get the air done then work on getting the ground out. They will have to do it before the pickups start. That way they have room for the bulk and still be able to get to their deliveries after the pickups are done. Also they are going to have to figure out where to drop their air that they picked up so it can make it on the plane in time. That'll be a fun one for you isp guys to figure out. Not to mention how many under paid drivers are not going to care if the air gets on the plane on time. And all of the sudden you have drivers who used to work maybe 8 hours now staying out 12 plus hours a day for the same pay. I'm sure that'll go over well. And you will have a ton business stops that won't get delivered before 5 that will be recycled into the route the next day. Dmac seems to think it'll be easy. Good luck to ya.
 

dmac1

Well-Known Member
What if FedEx tells you they won't pay you more but gives you the express volume any way. Just like you would do to your drivers.
Do you know that the ISP gets paid more for more volume????? Sounds like you didn't know that.

So the extra volume means more pay in the same area you are already in. And HD used to pay extra for appointment deliveries, so I imagine an express package is really an appointment delivery, so the ISP is definitely incentivized to get them there on time, especially if the added volume means he can expand profitably.
 

dmac1

Well-Known Member
Yes exactly and late air will happen. A little too often. But there is so much to it. There is so much more stress when you have time committed packages in the morning and at the end of the day. Not only will your guys have to double trip their entire route to get the air done then work on getting the ground out. They will have to do it before the pickups start. That way they have room for the bulk and still be able to get to their deliveries after the pickups are done. Also they are going to have to figure out where to drop their air that they picked up so it can make it on the plane in time. That'll be a fun one for you isp guys to figure out. Not to mention how many under paid drivers are not going to care if the air gets on the plane on time. And all of the sudden you have drivers who used to work maybe 8 hours now staying out 12 plus hours a day for the same pay. I'm sure that'll go over well. And you will have a ton business stops that won't get delivered before 5 that will be recycled into the route the next day. Dmac seems to think it'll be easy. Good luck to ya.


Never said it was easy, but not as difficult as you pretend. An ISP will have so much more volume from express that he can hire an extra driver or drivers just to handle anything that makes it too difficult for his other drivers. Fedex has so much opportunity to reduce costs that they could afford to pay the ISP double for the guaranteed deliveries/pickups.. I don't think that express drivers even realize the total cost of a delivery driver. All they know is what they make, and don't have a clue about all the other costs involved. The ISP know those costs- the vehicle, the insurance, the cost of payroll, employment taxes, and so on.

I don't see how fedex CANNOT have ground deliver almost all, if not all express packages. Everything from the terminal up would be the same- planes, trucking to the terminal, upper mngmt, etc, but once the package is at the ground terminal, there is no reason for fedex to hire drivers, managers, twice the number of package handlers, and so on. It will violate their legal duty to stockholders to maximize profit.
 

bacha29

Well-Known Member
Absolutely nothing you're speculating about is happening. Until it does, if ever, I'll just deal with it then. The only one seeming to be getting into a frenzy about it is, well, you. Why is that?
What I'm trying to doing to you X jocks is recommending in the strongest terms possible that you need get prepared as best you can for a dramatic and completely unforeseen turn of events and to stop believing that Ground can't do what you guys do. Yes every contractor will have to scale up and to acquire more redundancy but they have already. been doing that for years. Keep mind because there is no formal collective bargaining agreement in place it allows X to add, subtract, amend and abolish any of it's past ,current and future labor policies as they see fit . Furthermore there appears to be an unofficial and unwritten but ongoing nationwide effort to get the older workers out of not in the workforce given the fact that the economy is only generating half the number of new jobs needed to keep up with the number of new workers entering the work force. Recently I talked to the people at OVR about trying to get back into the workforce despite spinal stenosis and both hip joints replaced. I heard nothing encouraging. Therefore I put in for Social Security Disability despite knowing that 74% of all first time disability benefit claims are denied and it takes an average of 21 months just to get an appeal heard. With those numbers I know that my claim will be denied. It's all in keeping with my belief in the importance of hoping for the best but planning for the worst and in the world of today it's now more important than ever
 

bacha29

Well-Known Member
Never said it was easy, but not as difficult as you pretend. An ISP will have so much more volume from express that he can hire an extra driver or drivers just to handle anything that makes it too difficult for his other drivers. Fedex has so much opportunity to reduce costs that they could afford to pay the ISP double for the guaranteed deliveries/pickups.. I don't think that express drivers even realize the total cost of a delivery driver. All they know is what they make, and don't have a clue about all the other costs involved. The ISP know those costs- the vehicle, the insurance, the cost of payroll, employment taxes, and so on.

I don't see how fedex CANNOT have ground deliver almost all, if not all express packages. Everything from the terminal up would be the same- planes, trucking to the terminal, upper mngmt, etc, but once the package is at the ground terminal, there is no reason for fedex to hire drivers, managers, twice the number of package handlers, and so on. It will violate their legal duty to stockholders to maximize profit.
Keep something in mind. Two years ago Bill Ackman the head of Pershing Capital Group one of the largest hedge funds in the game today and at one time was interested in taking a large position in X came out and said that he was no longer interested in it due to the fact that as long as the disconnect between Express and Ground exists the company's full value will remain locked up. Now when you add in the $12+ EPS target that has been on X's back by the investment banks along with the fact that Xpress has been cost gutted about as far as it can go ask yourself this question. What cost reductions remain and where are they located. ? Bill Ackman knows where they are and what has to be done to access them......... And so do you guys.
 

It will be fine

Well-Known Member
Ithe inG friend the same time I see you h the same time
Translation, please? Anyone?
If I had to guess it's something like "deliver it all at the same time." If you had all the Ground/HD/Express on the same truck routes would be as small as UPS routes so backtracking wouldn't be that bad. At least in urban/suburban areas the density would allow deliveries with time commits to be manageable.
 

sandwich

The resident gearhead
Do you know that the ISP gets paid more for more volume????? Sounds like you didn't know that.

So the extra volume means more pay in the same area you are already in. And HD used to pay extra for appointment deliveries, so I imagine an express package is really an appointment delivery, so the ISP is definitely incentivized to get them there on time, especially if the added volume means he can expand profitably.
Did you know that x isn't just going to to give you express volume without renegotiating your contract????? If you think x is going to double your volume AND you paycheck you are a bit daft. As you said x is in the business of making money. You guys are going to get screwed just like everyone else.
 
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59 Dano

I just want to make friends!
If I had to guess it's something like "deliver it all at the same time." If you had all the Ground/HD/Express on the same truck routes would be as small as UPS routes so backtracking wouldn't be that bad. At least in urban/suburban areas the density would allow deliveries with time commits to be manageable.

UPS, just like Express, has direct control over the operation of packages with time commitments. Ground doesn't have the control or the commitments.
 

59 Dano

I just want to make friends!
What I'm trying to doing to you X jocks is recommending in the strongest terms possible that you need get prepared as best you can for a dramatic and completely unforeseen turn of events and to stop believing that Ground can't do what you guys do. Yes every contractor will have to scale up and to acquire more redundancy but they have already. been doing that for years. Keep mind because there is no formal collective bargaining agreement in place it allows X to add, subtract, amend and abolish any of it's past ,current and future labor policies as they see fit . Furthermore there appears to be an unofficial and unwritten but ongoing nationwide effort to get the older workers out of not in the workforce given the fact that the economy is only generating half the number of new jobs needed to keep up with the number of new workers entering the work force. Recently I talked to the people at OVR about trying to get back into the workforce despite spinal stenosis and both hip joints replaced. I heard nothing encouraging. Therefore I put in for Social Security Disability despite knowing that 74% of all first time disability benefit claims are denied and it takes an average of 21 months just to get an appeal heard. With those numbers I know that my claim will be denied. It's all in keeping with my belief in the importance of hoping for the best but planning for the worst and in the world of today it's now more important than ever

A very strong case from a guy who isn't involved with EITHER company talking about the capabilities of a company he WAS working with and how well it can integrate the operations of a company that he was NEVER involved with.
 

sandwich

The resident gearhead
Never said it was easy, but not as difficult as you pretend. An ISP will have so much more volume from express that he can hire an extra driver or drivers just to handle anything that makes it too difficult for his other drivers. Fedex has so much opportunity to reduce costs that they could afford to pay the ISP double for the guaranteed deliveries/pickups.. I don't think that express drivers even realize the total cost of a delivery driver. All they know is what they make, and don't have a clue about all the other costs involved. The ISP know those costs- the vehicle, the insurance, the cost of payroll, employment taxes, and so on.

I don't see how fedex CANNOT have ground deliver almost all, if not all express packages. Everything from the terminal up would be the same- planes, trucking to the terminal, upper mngmt, etc, but once the package is at the ground terminal, there is no reason for fedex to hire drivers, managers, twice the number of package handlers, and so on. It will violate their legal duty to stockholders to maximize profit.
Uhhh. I'm not pretending its difficult. It is. I live it everyday at ups. You think its gonna be no big deal. A bunch of contractors trying to this. Its going to be nearly impossible. It would be far easier for express to absorb ground.
 

It will be fine

Well-Known Member
UPS, just like Express, has direct control over the operation of packages with time commitments. Ground doesn't have the control or the commitments.
So in one of the contiguous areas I cover I run 8 trucks a day. I've only ever seen 2 express drivers in the whole area and one of them I assume is a PM part timer since I've never seen him in the morning. Let's be generous and say there's 30 priority delivery stops for the AM express driver. You don't think I could manage to get those 30 stops covered by 9 or 10 trucks? Depending on how many trucks I'd need to add for the non priority packages. What control over my employees am I lacking that express management has? I can't tell them these 4 stops need to be done before 10:30?
 

bbsam

Moderator
Staff member
also, no reason a move of Express deliveries to Ground nationwide. could start in select (probably urban) high density areas. Think Amazon strategy.
 

bacha29

Well-Known Member
A very strong case from a guy who isn't involved with EITHER company talking about the capabilities of a company he WAS working with and how well it can integrate the operations of a company that he was NEVER involved with.
Wrong. Like you are most of the time. Twenty three years with Ground going back to the development stages of RPS. That elitist mentality you X jocks will be your undoing.Why do I say that? Smart contractors like IWBF are already gearing up for the transition. Why? BECAUSE THEY DON"T HAVE ANY OTHER CHOICE. They hand you the new contract specifications and if you can't meet them It's hasta la vista baby. Now you X jocks can go on living in your sheltered, elitist little worlds with my blessing. At the same time when you look at small pay raises and the evisceration of benefit plans and the growth in the part time work force which you Xjocks are constantly bitchin about, you should not need Fred S to tell you that Xpress is an unit that has become too expensive to operate. You can see that with your own two eyes.
 
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