Pilot strike

[bacha29]

You would be wrong in the case of Express. A normal airline doesn't have hundreds of thousands of employees delivering packages. Payroll takes over half of FedEx revenue. Fuel about a quarter. And FedEx pilots being unionized has no bearing on frontline employees pay.

And the pilots jobs are getting farmed out to third party air brokers and line haul and final mile delivery people are being replaced with contractor labor working for even less. So it's all just a matter of time until the excessive economization results in service failures all over the place .
And who's going to get the blame? Not managers...contractors. Usually because they couldn't find enough people willing to work for nothing or they were simply no longer willing to put anymore borrowed money at risk .

 

[vantexan]

And the pilots jobs are getting farmed out to third party air brokers and line haul and final mile delivery people are being replaced with contractor labor working for even less. So it's all just a matter of time until the excessive economization results in service failures all over the place .
And who's going to get the blame? Not managers...contractors. Usually because they couldn't find enough people willing to work for nothing or they were simply no longer willing to put anymore borrowed money at risk .

Which is exactly why Express will never get UPS level pay and benefits. Money will be thrown at Ground until they can make it work. Because, according to our resident guru, "air freight is a service that is becoming just too damn expensive to operate."

 

[Fred's Myth]

And the pilots jobs are getting farmed out to third party air brokers and line haul and final mile delivery people are being replaced with contractor labor working for even less. So it's all just a matter of time until the excessive economization results in service failures all over the place .
And who's going to get the blame? Not managers...contractors. Usually because they couldn't find enough people willing to work for nothing or they were simply no longer willing to put anymore borrowed money at risk .

If the Pilots allow their jobs to be "farmed out" to anyone else without striking, then they have no one to blame but themselves.

 

[bacha29]

Which is exactly why Express will never get UPS level pay and benefits. Money will be thrown at Ground until they can make it work. Because, according to our resident guru, "air freight is a service that is becoming just too damn expensive to operate."

The entire industry is being reconfigured in the face of compressed freight volume and compressed margins. Fat Freddy could pay UPS scale and still be profitable but why do it as long as he can continue to make people believe that they and the work they do is less valuable than the employees over at UPS who are doing exactly the same thing?

 

[bacha29]

If the Pilots allow their jobs to be "farmed out" to anyone else without striking, then they have no one to blame but themselves.

Exactly. If you're going to go down at least you'll have the satisfaction of knowing that you went down fighting and. didn't make it easy for Fat Freddy. While image conscious Fat Freddy is red faced with embarrassment....UPS is grinning like a possum.

 

[vantexan]

The entire industry is being reconfigured in the face of compressed freight volume and compressed margins. Fat Freddy could pay UPS scale and still be profitable but why do it as long as he can continue to make people believe that they and the work they do is less valuable than the employees over at UPS who are doing exactly the same thing?

I'm going off numbers from before I retired but at the time FedEx brought in about $60 billion if I remember right. 52% of that went to payroll. All said and done they netted about $2 billion. This was all of FedEx, not just Express. If they were spending over $30 billion on payroll, another $15 or so billion on fuel, the rest on equipment, rent, etc, etc, left with $2 billion, then how were they going to bring everyone up to UPS scale? The fact remains that the UPS primarily ground model is much more profitable than overnight air. FedEx realized that and most of that $2 billion in profit was coming from Ground. Before Ground was built FedEx annual profits were often less than a billion. What is sad and pathetic about FedEx is their willingness to use the contractor model and screw just about everyone except the customers who ship a lot of bulk and are getting their freight delivered for less. If they truly are trying to make Ground the center of FedEx and increase profits that much more then there's simply no way they are going to pay the people still at Express UPS pay and benefits when their focus will be on keeping Ground going. The money isn't there with Express at its current size to increase everyone's pay that much. That's without even thinking about great healthcare and retirement. And if Ground becomes much larger than Express and profits grow considerably they aren't going to put all that profit into what's left of Express. They're going to shell out bigger dividends to increase the stock price. Reward investors and make themselves richer in the bargain. People need to realize that if they work for a major corporation whose model revolves around a large workforce and labor intensive work then they are the most vulnerable to company cost saving measures. It's why UPS has a union and FedEx went to such lengths wining and dining Congressmen to keep a union out.

 

[bacha29]

I'm going off numbers from before I retired but at the time FedEx brought in about $60 billion if I remember right. 52% of that went to payroll. All said and done they netted about $2 billion. This was all of FedEx, not just Express. If they were spending over $30 billion on payroll, another $15 or so billion on fuel, the rest on equipment, rent, etc, etc, left with $2 billion, then how were they going to bring everyone up to UPS scale? The fact remains that the UPS primarily ground model is much more profitable than overnight air. FedEx realized that and most of that $2 billion in profit was coming from Ground. Before Ground was built FedEx annual profits were often less than a billion. What is sad and pathetic about FedEx is their willingness to use the contractor model and screw just about everyone except the customers who ship a lot of bulk and are getting their freight delivered for less. If they truly are trying to make Ground the center of FedEx and increase profits that much more then there's simply no way they are going to pay the people still at Express UPS pay and benefits when their focus will be on keeping Ground going. The money isn't there with Express at its current size to increase everyone's pay that much. That's without even thinking about great healthcare and retirement. And if Ground becomes much larger than Express and profits grow considerably they aren't going to put all that profit into what's left of Express. They're going to shell out bigger dividends to increase the stock price. Reward investors and make themselves richer in the bargain. People need to realize that if they work for a major corporation whose model revolves around a large workforce and labor intensive work then they are the most vulnerable to company cost saving measures. It's why UPS has a union and FedEx went to such lengths wining and dining Congressmen to keep a union out.

You keep going on about how FDX can't do this or can't do that and can't do something else. The point is they've never been challenged, never put in a position where they had to keep with their competitors from a pay and benefit perspective.
So in the end it once again is a matter of whether or not third party air cargo brokers and cheap contractor employed labor will be able to keep up without serious delays or disruptions causing flagrant and repeated service failures causing a slow but steady collapse of the network itself.

 

[yadig]

You keep going on about how FDX can't do this or can't do that and can't do something else. The point is they've never been challenged, never put in a position where they had to keep with their competitors from a pay and benefit perspective.
So in the end it once again is a matter of whether or not third party air cargo brokers and cheap contractor employed labor will be able to keep up without serious delays or disruptions causing flagrant and repeated service failures causing a slow but steady collapse of the network itself.

I couldn’t agree more!! Van and dano make me sick to my stomach being Fatz apologist! They don’t pay the same because to many van’s work here.

 

[vantexan]

You keep going on about how FDX can't do this or can't do that and can't do something else. The point is they've never been challenged, never put in a position where they had to keep with their competitors from a pay and benefit perspective.
So in the end it once again is a matter of whether or not third party air cargo brokers and cheap contractor employed labor will be able to keep up without serious delays or disruptions causing flagrant and repeated service failures causing a slow but steady collapse of the network itself.

Note to Bacha: FedEx isn't the government. They can't print money. If it isn't there it isn't there. Please tell me how they're going to spend over half their revenue on payroll, another quarter on fuel, pay for rent, utilities, new vehicles and jets, etc, etc out of the rest, have a couple billion left and then exponentially drive up their costs by bringing everyone's pay up to UPS levels, throw in excellent healthcare for the employee and his family, and give him a great retirement too? Don't blame me, I'm just pointing out the obvious. I didn't create this situation. You are so driven by hatred for FedEx you want to harm them anyway possible including trying to make as many employees as possible unhappy so that they'll leave. Pure poison.

 

[vantexan]

I couldn’t agree more!! Van and dano make me sick to my stomach being Fatz apologist! They don’t pay the same because to many van’s work here.

I didn't create this situation and I've certainly pointed out the company's faults in the past. In the end everyone is trying to get the most for themselves and management holds all the cards. Don't think so? Start a union. Oh, wait, they've rigged it so you can't. For some reason some people can't stand the truth being said out loud and think if we just want it enough we can make it happen. Good luck. Seriously, I wish you the best. I'm glad I managed to get a little bit of a traditional pension before they pulled the rug out from under. I feel for you guys who have had that taken from you, such as it is. I was speculating a few years back that they'd likely end the portable pension next. And sure enough they did. I started in '86 and saw a lot of broken promises. And as one of the many van's who worked there I spoke up at company meetings. Had a district director take me aside after a meeting and tell me if I'm not happy why don't I leave. But what I'm not going to do is be a Bacha pied piper leading you down a false path with lies. If I'm wrong about the company's ability to give UPS level pay and benefits then please show me how they can? We have an economy that's getting harder and harder to keep people in the middle class. The people in management don't care as long as they get theirs. That's the harsh reality. Not Bacha's they could if they want to garbage.

 

[bacha29]

Note to Bacha: FedEx isn't the government. They can't print money. If it isn't there it isn't there. Please tell me how they're going to spend over half their revenue on payroll, another quarter on fuel, pay for rent, utilities, new vehicles and jets, etc, etc out of the rest, have a couple billion left and then exponentially drive up their costs by bringing everyone's pay up to UPS levels, throw in excellent healthcare for the employee and his family, and give him a great retirement too? Don't blame me, I'm just pointing out the obvious. I didn't create this situation. You are so driven by hatred for FedEx you want to harm them anyway possible including trying to make as many employees as possible unhappy so that they'll leave. Pure poison.

As is the past when you can't produce an effective counterpoint you immediately shift over to same old tried and true deflection that being the government's fault.

 

[bacha29]

I couldn’t agree more!! Van and dano make me sick to my stomach being Fatz apologist! They don’t pay the same because to many van’s work here.

Absolutely spot on. The feeling of betrayal on the part of the many thousands of FDX employees who have been jettisoned or soon will be jettisoned is understood. Unfortunately many of come to understand the hard way that they were only there until they can be replaced preferably with something cheaper. Their passive and submissive subjugation to Fat Freddy is something they are coming to discover did nothing to protect their jobs and it's too late to anything about it now.

 

[vantexan]

As is the past when you can't produce an effective counterpoint you immediately shift over to same old tried and true deflection that being the government's fault.

Where did I say it's the government's fault?

 

[vantexan]

Absolutely spot on. The feeling of betrayal on the part of the many thousands of FDX employees who have been jettisoned or soon will be jettisoned is understood. Unfortunately many of come to understand the hard way that they were only there until they can be replaced preferably with something cheaper. Their passive and submissive subjugation to Fat Freddy is something they are coming to discover did nothing to protect their jobs and it's too late to anything about it now.

What would you suggest that they should've done?

 

[Nolimitz]

I'm going off numbers from before I retired but at the time FedEx brought in about $60 billion if I remember right. 52% of that went to payroll. All said and done they netted about $2 billion. This was all of FedEx, not just Express. If they were spending over $30 billion on payroll, another $15 or so billion on fuel, the rest on equipment, rent, etc, etc, left with $2 billion, then how were they going to bring everyone up to UPS scale? The fact remains that the UPS primarily ground model is much more profitable than overnight air. FedEx realized that and most of that $2 billion in profit was coming from Ground. Before Ground was built FedEx annual profits were often less than a billion. What is sad and pathetic about FedEx is their willingness to use the contractor model and screw just about everyone except the customers who ship a lot of bulk and are getting their freight delivered for less. If they truly are trying to make Ground the center of FedEx and increase profits that much more then there's simply no way they are going to pay the people still at Express UPS pay and benefits when their focus will be on keeping Ground going. The money isn't there with Express at its current size to increase everyone's pay that much. That's without even thinking about great healthcare and retirement. And if Ground becomes much larger than Express and profits grow considerably they aren't going to put all that profit into what's left of Express. They're going to shell out bigger dividends to increase the stock price. Reward investors and make themselves richer in the bargain. People need to realize that if they work for a major corporation whose model revolves around a large workforce and labor intensive work then they are the most vulnerable to company cost saving measures. It's why UPS has a union and FedEx went to such lengths wining and dining Congressmen to keep a union out.

the master economist speaks again from the dead zone of FedEx retirement. LOL

 

[vantexan]

the master economist speaks again from the dead zone of FedEx retirement. LOL

Yah, I was just on the phone advising Fred what to do next.

 

[Cactus]

You can't say air freight is getting too expensive to operate then call me a corporate apologist for pointing out they don't have the money to pay UPS level pay and benefits. You're trying to have it both ways. Make your mind up. Either they have the money or they don't.

They have had the money and do have the money. They want you to believe they don’t.

 

[yadig]

They have had the money and do have the money. They want you to believe they don’t.

Bingo!!!!

 

[Aquaman]

They have had the money and do have the money. They want you to believe they don’t.

None of it makes a difference to me. I have a class A CDL. The company has earned zero trust and loyalty from me. I’m going to continue to do nothing on the clock, milk this place to death. Turn down extra work. And wait for my severance check. Then I’ll go drive for a real company. This place is a joke and should be treated like one.

 

[vantexan]

They have had the money and do have the money. They want you to believe they don’t.

They're regulated by the SEC. Audited. Like every publicly traded corporation. They aren't hiding billions. Fred S makes millions every quarter from stock dividends. He's not risking that to sock away money illegally. Having a fiduciary responsibility brings serious legal penalties for violating the law. Ask Bacha.