FedEX buying back Ground Routes

[FedExer267]

First I would like to Say HELLO to everyone as I am new here.
The rumors are really flying around here (NYM). It is my understanding that the complete oppistie is going to happen. FedEx will one day be 100% subcontractors. This will insure fedex will get teamsters off his back. Fedex ground makes him the most profit hands down. Fedex express is slowly taking over all the USPO contract work. They are convincing the USPO why deal with all these independent haulers. Let us do it all. FedEx express is already flying a huge amount of air mail. Fred S will do ANYTHING in his power to stay non-union. As long as he has "drivers" he is at risk for the teamsters getting in.
By Makeing all his Ground contractors incorporate it draws a line. He does not pay individuals! I work with people that were not incorporated. So Fedex ground issued The checks to them personally. Gets alittle grey......
I have been a contractor for 11 years and incorporated from DAY 1. I dont know why any of these people wouldnt incorporate.

I can see your point and welcome by the way. However, whatever old Fred has up his sleeve will not be known til right before it happens.
On one point if you work at Express and come to work one day and they tell you you will no longer be a employee but working for a Contractor would that not open the door for alot of lawsuits. Its not like they are going out of business. On the other hand yes it would keep a union out. How great would FedEx look then, you just killed how many middle class jobs, thats a big risk. We all know working for a Contractor does not pay what being a employee does.

If you are all under the ISP Model and running your own little Corporation whats from keeping the teamsters from unionizing every Corporation that delivers for FedEx. Lets face it we would not get big contracts however it would be enough to take a big chunk out of the Corporation which could force you into bankruptcy. We are not unrealistic we would just like to be paid for actual hours worked. I believe a very similar thing happen at DHL and they were ran by Contractors who owned their own Corporation but delivered strictly DHL. So they got rid of Ground deliveries altogether and went back to International.

If Fred decides to go a all Contractor model at Express I see UPS reaping the benefits they already get so much back from Ground because the drivers at Ground dont care and give exactly what they are paid for. People want customer service and drivers to be flexible, at the end of the day the driver who gets paid for his actual time will give better customer service and will even be a little flexible. I dont know I could be wrong but I do believe there is a reason why there are 14 diffrent UPS routes in the area I cover and they stop at every business.

 

[bbsam]

Excuse me upstate... I was not aware we were suppose to be spelling goo roos on the old BC. I am just a dumb truck driver, If you are reading it then you get the point. Thank you come again

I believe the word you are looking for is "gurus".

 

[UpstateNYUPSer(Ret)]

I guess, unlike others, I don't let my job define or limit who I am.

 

[bbsam]

I guess, unlike others, I don't let my job define or limit who I am.

Spoken like a true guru.

 

[FedEx2000]

Have any posted profit margins?

If you are referring to operating margin, which I think you are....for Q2 FY'11 Express operating margin was 4.4%, down from 6.5% the previous year. Ground Operating margin was 14.3%, up from 13.0% the previous year. For FDX Corp. operating margin was 4.9%, down from 6.6% the previous year. FDX roll-up is almost identical to Express results, which shows how much of the revenue is generated by Express, albeit at smaller margins. Corporate goal is 10% across the board.

 

[bbsam]

So then what is considered "more profitable"?

 

[MrFedEx]

If you are referring to operating margin, which I think you are....for Q2 FY'11 Express operating margin was 4.4%, down from 6.5% the previous year. Ground Operating margin was 14.3%, up from 13.0% the previous year. For FDX Corp. operating margin was 4.9%, down from 6.6% the previous year. FDX roll-up is almost identical to Express results, which shows how much of the revenue is generated by Express, albeit at smaller margins. Corporate goal is 10% across the board.

Those Ground numbers are pretty amazing, but not all that surprising given the fact that Fred has artificially cheap labor costs.

 

[bbsam]

So it is easily seen that Express generates a huge amount of revenue. Also Ground's "return on investment" is quite amazing. Is it any wonder why Fred pours the money into expanding Ground? In a sense, it is more profitable because for every dollar Fred "invests" in Ground, Fred gets about 14% return on investment and less than 5% on Express.

 

[Cactus]

So it is easily seen that Express generates a huge amount of revenue. Also Ground's "return on investment" is quite amazing. Is it any wonder why Fred pours the money into expanding Ground? In a sense, it is more profitable because for every dollar Fred "invests" in Ground, Fred gets about 14% return on investment and less than 5% on Express.

So did he share those numbers with you on a recent conference call?

 

[FedExer267]

I guess, unlike others, I don't let my job define or limit who I am.

Hahaha Good one I wouldn't hold that noise any higher you may fall on your butt...

 

[FedExer267]

I believe the word you are looking for is "gurus".

Thanks for pointing that out.. I am glad to see your a spelling wizard.. Now if you can figure out away to treat your slavelabor correctly you will have it all..

 

[FedExer267]

So did he share those numbers with you on a recent conference call?

Probally a closed door meeting.

 

[bbsam]

Thanks for pointing that out.. I am glad to see your a spelling wizard.. Now if you can figure out away to treat your slavelabor correctly you will have it all..

"your" "you're" Circle the correct word for the above sentence. Not a spelling wizard, but I was an English major.

 

[bbsam]

So did he share those numbers with you on a recent conference call?

Um. Fedex 2000 posted them. What's wrong? Didn't want to see Ground being profitable?

 

[bbsam]

Thanks for pointing that out.. I am glad to see your a spelling wizard.. Now if you can figure out away to treat your slavelabor correctly you will have it all..

Slavelabor, slave-labor, or slave labor?

 

[UpstateNYUPSer(Ret)]

Probally? Are? Noise?

 

[vantexan]

Probally? Are? Noise?

"Probably" so, LOL!

 

[bbsam]

satellite would be so proud of us.

 

[Cactus]

Um. Fedex 2000 posted them. What's wrong? Didn't want to see Ground being profitable?

I've no problem with Ground be profitable but Ground drivers are masters at falsification.

I've had many drivers tell me if a customer isn't home to sign for a package, they just sign their name for them and leave the package (including computers, wine shipments, firearms etc.) while you contractors and station management look the other way.

Nothing personal Mr. bbsam but who's minding the asylum? The inmates?

That kind of conduct will get you fired from Express real fast.

 

[bbsam]

I've no problem with Ground be profitable but Ground drivers are masters at falsification.

I've had many drivers tell me if a customer isn't home to sign for a package, they just sign their name for them and leave the package (including computers, wine shipments, firearms etc.) while you contractors and station management look the other way.

Nothing personal Mr. bbsam but who's minding the asylum? The inmates?

That kind of conduct will get you fired from Express real fast.

No offense cactus, but MFE himself has been on this very site saying that Express management (and UPS as well) make a habit of instructing drivers to falsify times and such. Personally, I don't because contrary to popular belief, Ground management doesn't instill alot of fear with me.