Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
All Day Managers Meetings...
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Ricochet1a" data-source="post: 1024636" data-attributes="member: 22880"><p>First off, in my previous post, for some reason I was alternating between spelling "turf", with either an "e" or "u" - alternating between using terf and turf. Don't know what I was thinking...</p><p></p><p></p><p></p><p>With control, it is all a question of degree and what can the "master" company get away with. </p><p></p><p>How would contractors handle late freight? FedEx WOULDN'T sign a contract where they paid contractors "delay time", if for some reason they held them in station for delayed freight. </p><p></p><p>How would the inherent variability of Express operations be handled by a contractor at a cost lower than the cost Express currently has (and will experience in the coming years)? The IC model exists SOLELY for one reason - to enable a ground mode of package movement to be conducted while simultaneously insuring against unionization of the employees of that company. That is the ONLY reason the model exists. Express has paid a pretty penny to keep the RLA for itself - they wouldn't have paid that while even considering adopting a contractor model for DGO. </p><p></p><p>Another has to do with the RLA. A company cannot claim that it needs RLA classification (to protect itself from localized strikes which would cripple the "network"), then do an about face and use contractors to gets it volume moved on the ground - even Fred couldn't pull that one off and have Congress keep a straight face. </p><p></p><p>Express is indeed a "network", that depends on all parts of it operating in synchronous motion, to get off all the volume Express handles on time and at a cost the market will bear. Without that "synchronicity", Express couldn't provide the level of service that is has today. </p><p></p><p>Just look at the "real airlines' " (passenger carriers) freight departments and what they charge to move a piece of freight - I'm serious, get a quote to move a package by the cargo department of a scheduled passenger airline. If you think the Express rate schedule is insane, you haven't seen anything. You can get a package moved via air cargo of a passenger carrier, it will cost you about as much as a one-way passenger fare purchased two weeks in advance of the flight ($150-$300 for a small package). If you want it actually delivered from the airport to the recipient, add in another $50-$100 dollars depending on the distance from the airport. </p><p></p><p>Express acts as a systems integrator (both among the different opcos, and within Express itself). In that capacity, there are large cost savings to be had while simultaneously making a profit somewhere in there (Express hasn't been too good at this lately). By potentially breaking up Express into an "airline" (AGFS), then using contractors to move all the freight on the ground from the customers to and from the airports, all of that synergy of cost savings would go out the window. </p><p></p><p>Don't let your desires to grow your "business" blind you to the real reason you exist for Fred - you exist so that FedEx can move non air shipments without any risk of having the employees of that "company" organizing - pure and simple. If Ground operated under "real" labor conditions (no contractor games), its labor costs would rise to market levels- and the profit margin of Ground would fall to market norms (inline with UPS's). Ground is profitable because so many of its "working class non-employees", aren't making a living wage.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1024636, member: 22880"] First off, in my previous post, for some reason I was alternating between spelling "turf", with either an "e" or "u" - alternating between using terf and turf. Don't know what I was thinking... With control, it is all a question of degree and what can the "master" company get away with. How would contractors handle late freight? FedEx WOULDN'T sign a contract where they paid contractors "delay time", if for some reason they held them in station for delayed freight. How would the inherent variability of Express operations be handled by a contractor at a cost lower than the cost Express currently has (and will experience in the coming years)? The IC model exists SOLELY for one reason - to enable a ground mode of package movement to be conducted while simultaneously insuring against unionization of the employees of that company. That is the ONLY reason the model exists. Express has paid a pretty penny to keep the RLA for itself - they wouldn't have paid that while even considering adopting a contractor model for DGO. Another has to do with the RLA. A company cannot claim that it needs RLA classification (to protect itself from localized strikes which would cripple the "network"), then do an about face and use contractors to gets it volume moved on the ground - even Fred couldn't pull that one off and have Congress keep a straight face. Express is indeed a "network", that depends on all parts of it operating in synchronous motion, to get off all the volume Express handles on time and at a cost the market will bear. Without that "synchronicity", Express couldn't provide the level of service that is has today. Just look at the "real airlines' " (passenger carriers) freight departments and what they charge to move a piece of freight - I'm serious, get a quote to move a package by the cargo department of a scheduled passenger airline. If you think the Express rate schedule is insane, you haven't seen anything. You can get a package moved via air cargo of a passenger carrier, it will cost you about as much as a one-way passenger fare purchased two weeks in advance of the flight ($150-$300 for a small package). If you want it actually delivered from the airport to the recipient, add in another $50-$100 dollars depending on the distance from the airport. Express acts as a systems integrator (both among the different opcos, and within Express itself). In that capacity, there are large cost savings to be had while simultaneously making a profit somewhere in there (Express hasn't been too good at this lately). By potentially breaking up Express into an "airline" (AGFS), then using contractors to move all the freight on the ground from the customers to and from the airports, all of that synergy of cost savings would go out the window. Don't let your desires to grow your "business" blind you to the real reason you exist for Fred - you exist so that FedEx can move non air shipments without any risk of having the employees of that "company" organizing - pure and simple. If Ground operated under "real" labor conditions (no contractor games), its labor costs would rise to market levels- and the profit margin of Ground would fall to market norms (inline with UPS's). Ground is profitable because so many of its "working class non-employees", aren't making a living wage. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
All Day Managers Meetings...
Top