UPS contract hurts or helps FedEx?

Guitarman01

Well-Known Member
From what I read FDX Express will be keeping only a very small force probably by and large part timers to handle expedited high value shipments. Ground will take the rest.

Anybody seeing anything different?
Yeah I heard we will be getting bigger trucks to handle ground freight.
 

Artee

Well-Known Member
Express hauling Ground freight? Indications are it's the other way around.
who knows what the plan is. At our RT we are hiring four more truck drivers this month. We don't need them as driver are getting their hours reduced. If we are going to be getting less freight, why are we hiring more drivers. We have all seen what is going on in DGO, but I have not seen any announcements for AGFS.
 

yadig

Well-Known Member
Oh that sounds like the plan, but we are in the first 10% of it. Lets see if it makes it to completion. 25 years ago FDX was going all in at trucking with converters and pup trailers. We have not had a converter in our yard in 15 years. What happened to all the DC-10 conversions, all the Airbus planes, dense makes sense, best practice pays, purple promise, traditional and portable pensions, step programs, 2nd and 3rd shift pay, split shift pay, jumpseat, everyone is a 4/10, .....nah....nothing stays around very long at FDX. If this merge makes it all the way through I would be surprised. If Raj is still here in two years or in the same role and has not been moved to the head of FDX Office, I would be shocked.
When you have people who are willing to work for peanuts you can afford all the bs.
 

FedupExpress

Well-Known Member
Unless this contract has an equivalent productivity metrics for drivers , there is no way UPS can pass all that labor cost to customers and satisfy investors . Most likely,

UPS will probably have to layoff management and other non represented titles or reduce benefits significantly to keep up with 6 figure drivers . They will also have reduce hiring and stuff those trucks even more. If not the teamsters will suck that company dry.

Postal workers will benefit as it puts that management team on notice - even if its illegal for them to strike. Im sure letter carriers wont be happy with anything less than 40 bucks an hour top pay by 2028

it puts Fedex in a pretty pickle beceuse now even the lowest IQ worker is hyper aware how low fedex is paying. Low wages=A transient workforce=lower quality and service=less business. The Fedex business model of bagels and trinkets rather than take home just wont be enough.

My guess is fedex will try to payout a one time bonus this fall to stop some bleed of productive workers- it will not stop the bleed. Express will be dominated by expensive 25+ year geriatric employees with “nowhere to go” and transient employees . the fedex version of the teamster parasite is its legacy 30year drivers and management that cannot afford to retire

Maybe walmart or amazon will merge with fedex. But right mow fedex is dying slowly and its self inflicted
You hit it on the nose,
Express hauling Ground freight? Indications are it's the other way around.
In nature, big fish usually eats little fish. It does not matter how fast the little fish can deliver the envelope to the 3rd floor.
 

FedupExpress

Well-Known Member
who knows what the plan is. At our RT we are hiring four more truck drivers this month. We don't need them as driver are getting their hours reduced. If we are going to be getting less freight, why are we hiring more drivers. We have all seen what is going on in DGO, but I have not seen any announcements for AGFS.
Bro, they are hiring more drivers because many Will quit once the plan rolls out in full force.
 

zeev

Well-Known Member
who knows what the plan is. At our RT we are hiring four more truck drivers this month. We don't need them as driver are getting their hours reduced. If we are going to be getting less freight, why are we hiring more drivers. We have all seen what is going on in DGO, but I have not seen any announcements for AGFS.
Freight is freight need as many truck drivers as possible, my old ramp they train them and their gone before their feet hit the floor. Also the plan so far s just DGO.
 

UpstateNYUPSer(Ret)

Well-Known Member
So what you're saying is that UPS has become a freight network that is too expensive to operate successfully while FDX is a freight network that's simply too cheap to operate successfully.

Both are determined to acquire and hold onto a controlling share of the market. Who wins? We'll see in a few years.
Don't forget about the Post Office and their push in to package delivery:

 

Slowturtle

Active Member
This October is going to be a really interesting pay raise for the company. You have UPS getting a deal done for an almost $50/hr top out… at the same time FedEx is trying to dismantle Express in favor of low wage, no benefits, contractor labor. You hear a lot of apologists say Express isn’t going anywhere. Just select markets. Business as usual. Well it’s going to be obvious after October what the real plan is. They know employee morale is lower than ever before. They see the constant panic on social media. They know the rumors. If we’re given a crappy 2%-3% junk raise in the face of looming layoffs and competitor flexing, it’s going to really spell the end for Express. If they give us a solid step raise, maybe they actually do have a plan. The investment they make in us this October is going to speak louder than any BS an ops manager thinks we’re dumb enough to believe.
Mr Aquaman
I agree. FedEx is vicious on their employees. UPS lifts their employees morale for them has to feel like they work for the greatest company. While express finds every way to take every penny. Morale at Express at all time low as it moves to a contractor model. I’ve never seen anyone at ground very excited to be there. They are about to totally kill the brand as people look at express and think ground service now. Hope Amazon joins the teamsters headlines are saying they are on their way over their. Raj needs some pressure and wake up ..what an elitist snob.
 

FedupExpress

Well-Known Member
Mr Aquaman
I agree. FedEx is vicious on their employees. UPS lifts their employees morale for them has to feel like they work for the greatest company. While express finds every way to take every penny. Morale at Express at all time low as it moves to a contractor model. I’ve never seen anyone at ground very excited to be there. They are about to totally kill the brand as people look at express and think ground service now. Hope Amazon joins the teamsters headlines are saying they are on their way over their. Raj needs some pressure and wake up ..what an elitist snob.
Could be a suicide mission, Raj put in power to sink the ship.

I have been hearing the talk at ny station is quit before "the merger" kicks off.

The old timers either continue with disbelief or they have deer in headlights look on their faces.
 

dezguy

Well-Known Member
Mr Aquaman
I agree. FedEx is vicious on their employees. UPS lifts their employees morale for them has to feel like they work for the greatest company. While express finds every way to take every penny. Morale at Express at all time low as it moves to a contractor model. I’ve never seen anyone at ground very excited to be there. They are about to totally kill the brand as people look at express and think ground service now. Hope Amazon joins the teamsters headlines are saying they are on their way over their. Raj needs some pressure and wake up ..what an elitist snob.
Correction.

UPS does not lift their employees moral. If not for their union, UPS would be paying their employees much less, while expecting the same productivity.

The only difference between UPS and FedEx is the union. Management is management, regardless of the brand.
 

bacha29

Well-Known Member
I had a package ship the other day, incredibly fast, and on time for half the price. Express is finished.
Shipping rate wars unlike anything we've seen to this point are about to begin. If Bezos decides to go common carrier and or somebody like XPO decides to hop on at a time when Fat Freddy and Raj The Jackal are trying to figure out what to do with the mess they've created, getting pushed out of FDX Express might for some be the one of the best things that happened to them freeing them to move to a more promising area of the economy.
 

bacha29

Well-Known Member
Correction.

UPS does not lift their employees moral. If not for their union, UPS would be paying their employees much less, while expecting the same productivity.

The only difference between UPS and FedEx is the union. Management is management, regardless of the brand.
The union shop at UPS creates a barrier that stands between the labor force and the egregious behavior common to today's style of corporate and subordinate management behavior.

FDX is a prime example of what the labor force at UPS would be experiencing today if not for the fact that generations ago forward looking individuals recognizing the need for rights and security in the workplace fought their way through congress and the courts to get those rights.

Those who served long and loyally at FDX are seeing they and their jobs unceremoniously jettisoned and their pensions and healthcare, you know those so called "legacy costs" being slowly whittled down to nothing. But that's corporate "families" for you. The patriarchs and matriarchs are always served first and best.
 
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