Good points, but if you want to be part of the industry of only 2 competitors the current model for X will lose. Think about the LONG TERM. How do you think X will be able to compete with UPS with the many variables that exists in the regulatory arena, protect its brand with a fragmented increasingly unpopular underpaid contractor pool, and maintain any resemblance of a fortune 500 company.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.
They already have all entities doing the exact same thing with the the exact same equipment, in the exact same uniform, only to increase Controll, track us on scanners, require us to do things that are not contractual, and be able to accomplish this for the long term and fool the investor and legal community?
By the way, UPS is union, I think X will continue to fight it, however I do not believe that it is such an impedement, UPS makes it work.