Truth on orange the new green end is comin

[Exec32]

That would then present a huge question. Will the employees of the combined OPCO"s be under RLA or Taft Hartley.? Either way it will greatly increase the odds of a vote to go union and old Freddy will not stand for it no matter which legislation they fall under.

I believe X knows it's couriers falling under RLA will be subject to more and closer scrutiny. Fred is anticipating this and hedging his bet, he will wait to make any real substantial moves till the last minute

 

[dmac1]

I believe X knows it's couriers falling under RLA will be subject to more and closer scrutiny. Fred is anticipating this and hedging his bet, he will wait to make any real substantial moves till the last minute

It doesn't matter. If the drivers work for a contractor, unions would need to organize each individual contractor one at a time. Is the union going to spend thousands of dollars to organize maybe 6 drivers that an ISP has?????

 

[Exec32]

I never mentioned anything about union. X freight has made such attempts and it always be part of the industry landscape. I was just making a statement about the current state of affairs X finds itself in and the potential future outcome.
Hell union or not the future for contractors unfortunately does not look bright. I think we could at least agree on that

 

[TUT]

It could go one way or the other or stay the same. Your customers will be happy when it is one unified company.

 

[dmac1]

I never mentioned anything about union. X freight has made such attempts and it always be part of the industry landscape. I was just making a statement about the current state of affairs X finds itself in and the potential future outcome.
Hell union or not the future for contractors unfortunately does not look bright. I think we could at least agree on that

The future for the contractor may suck, but fedex will use them for every delivery possible.

 

[bacha29]

The future for the contractor may suck, but fedex will use them for every delivery possible.

One thing Ground contractors and Xpress jocks now have in common is that they are about to enter a period of uncertainty and upheaval . The difference is that unlike the X jocks the contractors have money invested and now will be called upon to place even more capital at risk with it's fate to be decided by someone else.

 

[Exec32]

You sir are absolutely correct. The only other real question, what will X choose to do to protect its brand, meet new and evolving customer demands, compete with UPS on a comparable level, and establish a long term viable plan for the future.
By the way you know anybody that wants to buy this pig.

 

[Exec32]

It could go one way or the other or stay the same. Your customers will be happy when it is one unified company.

Staying the same is probably not an option. Who will be on top is, going orange is an indicator who that may be.

 

[dmac1]

Staying the same is probably not an option. Who will be on top is, going orange is an indicator who that may be.

Orange was chosen because it has been the long term fedex logo color and is more recognized. Selection of a color is no indication of anything. You should know that already.

 

[Exec32]

Orange was chosen because it has been the long term fedex logo color and is more recognized. Selection of a color is no indication of anything. You should know that already.

So your saying express is the founding service, face of the company? Looks like it's going to stay that way.
By the way why orange really doesn't matter, we all know this just makes matters more confusing for us.

 

[bacha29]

You sir are absolutely correct. The only other real question, what will X choose to do to protect its brand, meet new and evolving customer demands, compete with UPS on a comparable level, and establish a long term viable plan for the future.
By the way you know anybody that wants to buy this pig.

All of these questions that you have put forward will not be for you to decide. Stay focused on your own core responsibilities and at least for the time being you will be all right

 

[Exec32]

All of these questions that you have put forward will not be for you to decide. Stay focused on your own core responsibilities and at least for the time being you will be all right

I know my man, just getting a kick out of the tunnel vision that exists with contractors. I respect them all, just disagree with most..

 

[bbsam]

So your saying express is the founding service, face of the company? Looks like it's going to stay that way.
By the way why orange really doesn't matter, we all know this just makes matters more confusing for us.

It makes things more confusing for the customer. I don't believe that is an unintended consequence.

 

[Exec32]

All of these questions that you have put forward will not be for you to decide. Stay focused on your own core responsibilities and at least for the time being you will be all right

Did you say hore responsibilities,,,,,,

 

[bacha29]

Did you say hore responsibilities,,,,,,

Don't you mean......ho?

 

[Exec32]

Don't you mean......ho?

Didn't rhyme with core

 

[Exec32]

It makes things more confusing for the customer. I don't believe that is an unintended consequence.

You know I do hope your right and I'm wrong. Well got to go I got 140 boxes going to one stop on on p1000 with 90 other stops to cover. What a life. That driver is Gona be thrilled

 

[oldrps]

If Express is to be the model they use, then why are they making it smaller? Express has reduced the number of stations, purchased smaller vans, and operating with less employees over the past several years. If they were moving everything to Express, they would be buying bigger vans, keeping employees, and growing/expanding the number of Express locations. Everything I have seen over the past few years does not indicate an Express model moving forward.

I think there will be a day of one FedEx package system, but only when they get more Ground volume. On a UPS van, how much of the package volume is air, 2 day, 3 day and ground? I am going to guess that if their van had 100 stops, about 20 are air, 2 day, 3 day, the rest ground. When FedEx gets close to the same package mix as UPS is when they will get serious about combining the operations. If the mix now (I am guessing) is 60 Ground/40 Express, it would fail.

I feel that FedEx is learning how to combine operations by merging the Home Delivery with Ground. I have heard they are also combining Smartpost as well. They are learning now with these services to prepare/learn for the merging of Express. I have seen nothing or heard of anything like this at Express from reading these boards for years. I know that combining Express will not be like these merges, but they are not guessing at what has to happen. They will have all the information on what the contractors and their drivers will have to learn and complete to accomplish it.

RPS, then Ground has rolled with the changing laws and regulations of contractors and will continue for as long as they can with this model. I don't see that changing or they would not be going through the ISP changes. Ground is expanding; 6 day deliveries, larger and more locations. They are growing Ground and shrinking Express.

 

[bacha29]

If Express is to be the model they use, then why are they making it smaller? Express has reduced the number of stations, purchased smaller vans, and operating with less employees over the past several years. If they were moving everything to Express, they would be buying bigger vans, keeping employees, and growing/expanding the number of Express locations. Everything I have seen over the past few years does not indicate an Express model moving forward.

I think there will be a day of one FedEx package system, but only when they get more Ground volume. On a UPS van, how much of the package volume is air, 2 day, 3 day and ground? I am going to guess that if their van had 100 stops, about 20 are air, 2 day, 3 day, the rest ground. When FedEx gets close to the same package mix as UPS is when they will get serious about combining the operations. If the mix now (I am guessing) is 60 Ground/40 Express, it would fail.

I feel that FedEx is learning how to combine operations by merging the Home Delivery with Ground. I have heard they are also combining Smartpost as well. They are learning now with these services to prepare/learn for the merging of Express. I have seen nothing or heard of anything like this at Express from reading these boards for years. I know that combining Express will not be like these merges, but they are not guessing at what has to happen. They will have all the information on what the contractors and their drivers will have to learn and complete to accomplish it.

RPS, then Ground has rolled with the changing laws and regulations of contractors and will continue for as long as they can with this model. I don't see that changing or they would not be going through the ISP changes. Ground is expanding; 6 day deliveries, larger and more locations. They are growing Ground and shrinking Express.

I believe that you have perfectly framed the entire matter. As Fred S pointed out a few years back Express as a service had become too expensive to operate. The idea as some have posted of merging Ground into Express and making it into an all employee work force thereby exposing X to a long and expensive battle to keep the Teamsters out of the picture is simply not going to happen. Nada. As you stated the focus now is to expand the role and capabilities of Ground's contractor work force through the ISP format.Will Express as we know it today go away? No, but it most certainly be a whole lot smaller than it currently is. Does this mark the beginning of a whole new era of ISP opportunity? No it does not. It means much higher capital requirements, regulatory requirements, training, delivery precision, employee demands for better pay and benefits all at a time of heavy downward pressure on settlements. What does this mean for the average Express jock? Little opportunity for advancement. Few new jobs created most part time and not much in the way of pay increases. What does it mean for the ISP contractor? Unlimited supply of suicide quality misery's Should we be envious of ISP contractors? Not in the least. The comfortable operating margins they have enjoyed in the past are just that.....in the past.

 

[Exec32]

If Express is to be the model they use, then why are they making it smaller?
1 ) because for now Ground is the cash cow, but only that, significant as it is it does nothing for the preservation of the brand. Legal landscape, lawsuits, and the long-term outlook demands an employee model. They are only shrinking express now to fill their coffers, and raise the stock, only to later transition everyone to express later with much less liability.

Express has reduced the number of stations, purchased smaller vans, and operating with less employees over the past several years.
2) the original plan 8 years ago has now changed, but X sees the benefit in continuing with their plan by passing asset and capital expenditures on to the contractor, and reducing their debt by using less costly resources like the vans you mention. Fewer express employees now is a no trainer for X. They can capture more revenue by pushing more volume onto ground now, only to easily take it back later with far fewer problems and a cheaper work force.
As for stations, ground has been purchasing more stations as of late, and they are much larger than necessary, easily capturing all volume under one roof. You would be hard pressed to locate a recently new built express terminal, they are rendering them absolute.
If they were moving everything to Express, they would be buying bigger vans, keeping employees, and growing/expanding the number of Express locations.
3) they do not need to buy bigger vans now on any significant scale because they are going to continue to reduce your volume for the near future, thus continue to reduce your workforce. We will continue to Cary the heavy burden of purchasing large truck's, only to have X later purchase for book value. Expect however for X to make some large van purchases in the near future. There also will still be a need for the smaller vans you have that they will retain.
Understand the smartest plan would be to reduce their expenditures and lessen their exposure to liabilities now, then take everything back with turn key less costly work force that was paid for by the contractor........
Everything I have seen over the past few years does not indicate an Express model moving forward.
4) You are correct that everything to now indicates less reliance on express. X plan, text book!

I think there will be a day of one FedEx package system, but only when they get more Ground volume. On a UPS van, how much of the package volume is air, 2 day, 3 day and ground? I am going to guess that if their van had 100 stops, about 20 are air, 2 day, 3 day, the rest ground. When FedEx gets close to the same package mix as UPS is when they will get serious about combining the operations. If the mix now (I am guessing) is 60 Ground/40 Express, it would fail.
5) X would like to do this later, but time is shorter than anticipated, however ground currently captures close to 45% of the market, and express has the majority of the priority mail, combined it is comparable to UPS; meaning it is very doable. Density created buy combining services will increase efficiencies and reduce cost. Another thing, by the time this is done expect priority to lose market to ground, and ground to gain on UPS. Essentially X loses nothing only gains.

I feel that FedEx is learning how to combine operations by merging the Home Delivery with Ground. I have heard they are also combining Smartpost as well. They are learning now with these services to prepare/learn for the merging of Express.
6) my point exactly, they have figured out that combining services will be more beneficial. They just want to reduce their exposure, fatten the bank account, and preserve their brand, while having us pay for it with no recourse for us to have. Express is that avenue
I have seen nothing or heard of anything like this at Express from reading these boards for years.
7) when has X let anyone outside the devil's circle know what was really going to happen. The outcome would be a disaster. They will make the contractor believe business as usual, express employees complacent with job security, while implementing this plan right in front of our face.
I know that combining Express will not be like these merges, but they are not guessing at what has to happen. They will have all the information on what the contractors and their drivers will have to learn and complete to accomplish it
.8) I agree, only the everyone in the end will be express, matter of fact they will probably drop the express name and go only with Fedex, all under the employee model.

RPS, then Ground has rolled with the changing laws and regulations of contractors and will continue for as long as they can with this model.
9) political landscape will change with the upcoming election. Public sentiment, and customer dissatisfaction will become unmanageable, lawsuits in every state will continue to damage the brand, the time is basically up.
I don't see that changing or they would not be going through the ISP changes.
10) ISP is diversion, another way to continue milking the contractors and skirt the laws. Buys them more time with no consequences at the end from canceling or discontinuing the model. X will blame it on regulatory pressures.
Ground is expanding; 6 day deliveries, larger and more locations. They are growing Ground and shrinking Express.
11) Making room for express volume for now, express people for later. Express already works 6 days, however work days are irrelevant.
THEY ARE GROWING GROUND, YES. I WOULD TO IF I WAS THEM. SHRINKING EXPRESS, SMART. THAT HAS NOTHING TO DO WITH WHAT SERVICE WILL PERSEVERE. EVRYTHING TO DO WITH WHAT IS MENTIONED ABOVE.