Two tier wage system, who does it affect?

[UpstateNYUPSer(Ret)]

Come on, man, it's obvious you're quoting him accurately, but totally out of context with the rest of his post.

I only used the part that fit my agenda.

 

[cosmo1]

I only used the part that fit my agenda.

Typical.

 

[By The Book]

There is-----I prefer bagels and cream cheese but they insist upon giving us donuts and muffins.

I asked the OMS that bought our morning treats to buy me something I wanted and every week after that there was one of that for me. Just ask, it can happen.

 

[scratch]

I deliver to a Fedex Home Delivery contractor that owns three routes. He pays his drivers $10 an hour with no benefits. He doesn't want his people to stay and make a career out of delivering packages. I make $34.81 an hour with full benefits. This is the reality of what we are discussing. I see a time when we will have to lower the payscale to stay in business. It stinks, but the more we raise prices the more that benefits our competitors that do not have the same pay. Currently, Fedex really runs three different companies to do the same thing that I do. If they combine all three into the same truck we will lose the only advantage we have over them. Its all simple math, tell me how I'm wrong.

 

[By The Book]

I deliver to a Fedex Home Delivery contractor that owns three routes. He pays his drivers $10 an hour with no benefits. He doesn't want his people to stay and make a career out of delivering packages. I make $34.81 an hour with full benefits. This is the reality of what we are discussing. I see a time when we will have to lower the payscale to stay in business. It stinks, but the more we raise prices the more that benefits our competitors that do not have the same pay. Currently, Fedex really runs three different companies to do the same thing that I do. If they combine all three into the same truck we will lose the only advantage we have over them. Its all simple math, tell me how I'm wrong.

That won't happen....the merging of the 3 branches of Fedx. Fred won't let that happen, IMO.

 

[scratch]

That won't happen....the merging of the 3 branches of Fedx. Fred won't let that happen, IMO.

I certainly hope not, but he isn't going to live forever.

 

[UpstateNYUPSer(Ret)]

I asked the OMS that bought our morning treats to buy me something I wanted and every week after that there was one of that for me. Just ask, it can happen.

I was being sarcastic.

 

[sandwich]

I deliver to a Fedex Home Delivery contractor that owns three routes. He pays his drivers $10 an hour with no benefits. He doesn't want his people to stay and make a career out of delivering packages. I make $34.81 an hour with full benefits. This is the reality of what we are discussing. I see a time when we will have to lower the payscale to stay in business. It stinks, but the more we raise prices the more that benefits our competitors that do not have the same pay. Currently, Fedex really runs three different companies to do the same thing that I do. If they combine all three into the same truck we will lose the only advantage we have over them. Its all simple math, tell me how I'm wrong.

Everyone forgets about the contractor FedEx pays. They make about what one of our center managers make usually. So for every 3 drivers they have a center manager on average.

 

[UpstateNYUPSer(Ret)]

Everyone forgets about the contractor FedEx pays. They make about what one of our center managers make usually. So for every 3 drivers they have a center manager on average.

6 figures? I seriously doubt that.

 

[scratch]

The one I know says he makes about $10 an hour after expenses too. He is amazed at the pay and benefits I get. He often has to run a route when a driver does a no-show. Not all contractors make a lot of money, I would think the heavy commercial routes would bring in the most profit.

 

[By The Book]

I certainly hope not, but he isn't going to live forever.

The board may vote to merge them at some point....I hope it's a long way off though.

 

[brett636]

I deliver to a Fedex Home Delivery contractor that owns three routes. He pays his drivers $10 an hour with no benefits. He doesn't want his people to stay and make a career out of delivering packages. I make $34.81 an hour with full benefits. This is the reality of what we are discussing. I see a time when we will have to lower the payscale to stay in business. It stinks, but the more we raise prices the more that benefits our competitors that do not have the same pay. Currently, Fedex really runs three different companies to do the same thing that I do. If they combine all three into the same truck we will lose the only advantage we have over them. Its all simple math, tell me how I'm wrong.

You aren't wrong, but I don't believe we will see our wages drop to anywhere near $10/hr. anytime soon. Having 3 separate companies doing the work of one does affect Fedex in the sense that their average profit margin is half of what UPS has. UPS has long realized they pay a premium for us so they have saved money in other places like trying to get drivers to be more efficient, maintaining low debt, and owning most or all of their equipment/buildings instead of leasing. Although the low turnover rate amongst drivers does save some money for as well reducing training costs. Being over 100 years old with a broad brand recognition and a fully developed network helps too. Fred S is deathly afraid of unions so keeping all his services separate along with the sub contractor model goes a long way to maintaining the union free environment Fred S desires.

As far as the two tiered wage scale I see it happening through one of two ways. The most likely path to a two tiered wage scale is the company outright demanding it during a contract negotiation and getting it. This could happen during any contract year, or god forbid, the company begins to suffer financially and we will be the first to take the blame. The second path is just a continuation of our ever extending progression period. Since business does seem to be humming right along the company will have a difficult job justifying a two tiered wage scale so they just keep negotiating longer and longer progression periods till a new driver spends nearly half, or more, of their career to reach top scale.

However it comes it could mean issues for those of us already at top rate as a target could be placed on our backs to help increase the number of drivers at the lower pay rate. I guess we will see how the company feels on this issue come 2018.

 

[UpstateNYUPSer(Ret)]

The board may vote to merge them at some point....I hope it's a long way off though.

The Board lacks the authority to do this while the RLA is still in place.

 

[a911scanner]

Drop the pay scale to stay in business? Come back and talk to me when UPS shows a year over year loss vs. the profits they earn now.

I know the shareholders might be unhappy with a loss, but how in the world can a wage drop be justified with a company making billions of dollars every year?

 

[Brisket]

But you're totally cool with people who are texting, drunk, high, falling asleep from fatigue, arguing with their wives or husbands on a cell phone, eating, applying makeup, having fainting spells, and not knowing if they'll make that thing stop and NOT hit anyone...

First of all I NEVER said that! And I was also speaking to driverless vehicles, not the myriad of other distractions in vehicles WITH drivers.

 

[trickpony1]

Did I forget to mention the signing bonus that they will throw in to sweeten the pot?

$500 for PTers, $1K for FTers.

This "bonus" is heavily taxed so it's not as "sweet" as it seems.

 

[Ecw21411]

Wrong. 99% of us earned this job by working part time for a decade or more. We are not entitled. We effing earned it. This is where you go yawn. But its true. You don't understand because you walked in straight to full time. I leave my house at 7 am and get home at 9 pm. Nobody I know says I'm paid too much. So what people think that we are over paid? Only comments I ever get are how hard we work and that we earn our money. You probably hear these comments that no one else hears because nobody respects you.

Exactly we earn it and we spend more time working for ups then we do with our families.it took me 10 p/t to earn my ft job

 

[Dr.Brownz]

I would never vote yes no matter what they gave me.

Seems pretty clear cut to me.

Context is important in understanding meanings.

 

[Dr.Brownz]

Y

However it comes it could mean issues for those of us already at top rate as a target could be placed on our backs to help increase the number of drivers at the lower pay rate. I guess we will see how the company feels on this issue come 2018.

I see the mob coming back if that happens. People are not going to be run out of good paying jobs they have been at for 10 years or more.

 

[Coldworld]

Is his name Dave?

Yeah, we're about a year and a half out til the next contract... We should hear him talking about 2 tier wages anytime soon...even though it already happens now with air drivers, 4 year wage progression, tcd, etc, etc, ....