FedEx contractor revolt?

[thedownhillEXPRESS]

If you can get the job done for $20, why would you pay $30 for the same result?

At least the $30 doesn’t run over little kids and murder them.

 

[Fred's Myth]

At least the $30 doesn’t run over little kids and murder them.

And don’t brag, like Dano did, that FedEx has sex offenders working for them!

 

[bbsam]

If you can get the job done for $20, why would you pay $30 for the same result?

Why pay $20 per hour, have higher turnover, worse service and lower profit?

 

[fedx]

This has been tried and the contractors in most areas have failed because people now know the job and will know longer be used like that. They’ll start in the west and slowly integrate ground into express using the UPS model. It’s literally the only way forward

One word tells me why they won't do it that way. Unionization. If they merge Ground into Express like UPS, they risk losing RLA protection because they will be hauling mostly truck hauled freight. I guess I forgot to mention that in my previous comment. They also want the contractor model because they don't have to worry about unionization. Do I wish you were right Gone Fishing? Absolutely. If we were to do it the way you are hoping, then we could be like UPS, be unionized, and finally not have a 20 year top out employee plan. We'd also have a say in our work environment too. But like I said, FedEx is stingy and short sighted. They aren't looking 10 years down the road when they are out of business due to their business mistakes. They are only looking to the next quarter and how much profit they think they can make.

 

[MAKAVELI]

One word tells me why they won't do it that way. Unionization. If they merge Ground into Express like UPS, they risk losing RLA protection because they will be hauling mostly truck hauled freight. I guess I forgot to mention that in my previous comment. They also want the contractor model because they don't have to worry about unionization. Do I wish you were right Gone Fishing? Absolutely. If we were to do it the way you are hoping, then we could be like UPS, be unionized, and finally not have a 20 year top out employee plan. We'd also have a say in our work environment too. But like I said, FedEx is stingy and short sighted. They aren't looking 10 years down the road when they are out of business due to their business mistakes. They are only looking to the next quarter and how much profit they think they can make.

Until Ground proves they can handle all of their own freight plus Express time commits and pu I really wouldn't be worried about it. One thing that most people aren't even thinking about is peak. You can't cut Express to a part time workforce and expect it to handle peak.

 

[Gone fishin]

One word tells me why they won't do it that way. Unionization. If they merge Ground into Express like UPS, they risk losing RLA protection because they will be hauling mostly truck hauled freight. I guess I forgot to mention that in my previous comment. They also want the contractor model because they don't have to worry about unionization. Do I wish you were right Gone Fishing? Absolutely. If we were to do it the way you are hoping, then we could be like UPS, be unionized, and finally not have a 20 year top out employee plan. We'd also have a say in our work environment too. But like I said, FedEx is stingy and short sighted. They aren't looking 10 years down the road when they are out of business due to their business mistakes. They are only looking to the next quarter and how much profit they think they can make.

The least of their worries is unionization , the first is becoming profitable under a successful plan. The future will depend on their decision

 

[zeev]

Memo to Ground contractors prepare to take 95% of packages, head of HR leaving for Tesla, I expect Express to be cut in the new year. FedEx gave up on service a long time ago. Facebook and YouTube are filled with videos from door bell cameras flinging packages from the road and my favorite a driver flipping a gas grill end over end to get it to the door.

 

[fedx]

The least of their worries is unionization , the first is becoming profitable under a successful plan. The future will depend on their decision

Unionization is one of their biggest worries. That's why Ground was created as a separate company from the very beginning. It was a separate company with contractors to prevent it from being unionized. Everything they decide is based around avoiding any union forming. That's why Express volume will be shifted to Ground and not the other way around. Wait and see. Those 4Z labels is proof that's their intention. It's already started.

 

[MAKAVELI]

Unionization is one of their biggest worries. That's why Ground was created as a separate company from the very beginning. It was a separate company with contractors to prevent it from being unionized. Everything they decide is based around avoiding any union forming. That's why Express volume will be shifted to Ground and not the other way around. Wait and see. Those 4Z labels is proof that's their intention. It's already started.

It " was" also the reason for keeping the two OPCOs completely separate. They aren't worried about unionization as much as you think. They successfully kept Freight from going union and it would be much harder to organize Express. FedEx is purely looking at the short term at this point.

 

[fatboy33]

Unionization is one of their biggest worries. That's why Ground was created as a separate company from the very beginning. It was a separate company with contractors to prevent it from being unionized. Everything they decide is based around avoiding any union forming. That's why Express volume will be shifted to Ground and not the other way around. Wait and see. Those 4Z labels is proof that's their intention. It's already started.

Are they worried about unionization because it bankrupted UPS and caused them to go out of business?

 

[zeev]

It " was" also the reason for keeping the two OPCOs completely separate. They aren't worried about unionization as much as you think. They successfully kept Freight from going union and it would be much harder to organize Express. FedEx is purely looking at the short term at this point.

Freight is very competitive with other ltl trucking companies, they payed because they had to, Express’s union competition is UPS and DHL no way they are going to match them.

 

[MAKAVELI]

Freight is very competitive with other ltl trucking companies, they payed because they had to, Express’s union competition is UPS and DHL no way they are going to match them.

FedEx isn't worried about matching them. They are perfectly content with high turnover.

 

[bbsam]

FedEx isn't worried about matching them. They are perfectly content with high turnover.

I don’t know about that. It used to be a model for profitability. Now it’s the opposite. They can say it’s the contractors’ problem but it’s becoming more and more clear that it shows up in the quarterly reports.

 

[MAKAVELI]

I don’t know about that. It used to be a model for profitability. Now it’s the opposite. They can say it’s the contractors’ problem but it’s becoming more and more clear that it shows up in the quarterly reports.

If that were the case they wouldn't be trying to move Express freight to Ground.

 

[Mutineer]

FedEx isn't worried about matching them. They are perfectly content with high turnover.

Like the fast-food industry, I believe the future of this industry is being purposely built to be sustainable under a high turnover model.

 

[fedx]

It " was" also the reason for keeping the two OPCOs completely separate. They aren't worried about unionization as much as you think. They successfully kept Freight from going union and it would be much harder to organize Express. FedEx is purely looking at the short term at this point.

Freight can unionize which is why they pay so well. They can unionize by individual location and not nationally. So in other words, there are some unionized Freight locations. Maybe not a lot, but there are a few. Anyway, because that threat to unionize is there, they pay well just to keep the union out. I think they are worried about unionization a lot more than you think. If FedEx's RLA protection went away, I can guarantee you instantly pay would go up just based on the potential threat that Express could unionize. They would raise the pay just to keep the union out. I know Freight dockworkers make like $7 or so more dollars per hour than Express warehouse workers. Why? Because Freight dockworkers can unionize and Express can't.

 

[bbsam]

If that were the case they wouldn't be trying to move Express freight to Ground.

Because they think they can make it work on the cheap and make short term profits look good.

Personally, I don’t think that’s possible anymore.

 

[MAKAVELI]

Freight can unionize which is why they pay so well. They can unionize by individual location and not nationally. So in other words, there are some unionized Freight locations. Maybe not a lot, but there are a few. Anyway, because that threat to unionize is there, they pay well just to keep the union out. I think they are worried about unionization a lot more than you think. If FedEx's RLA protection went away, I can guarantee you instantly pay would go up just based on the potential threat that Express could unionize. They would raise the pay just to keep the union out. I know Freight dockworkers make like $7 or so more dollars per hour than Express warehouse workers. Why? Because Freight dockworkers can unionize and Express can't.

Express can unionize. Just has to be done nationally rather than locally. Freight is not union. A few terminals voted in the Teamsters but FedEx refused to bargain and those terminals eventually decertified. In order to be a real threat of organizing there would have to be a change in status for Express. That isn't happening anytime soon even if Express started delivering ground freight tomorrow. There was a clear line separating the two OPCOs completely as to keep that status. Network 2.0 throws that separation out the window. Raj and the board are essentially giving the middle finger to the Teamsters and FedEx drivers.

 

[fedx]

Express can unionize. Just has to be done nationally rather than locally. Freight is not union. A few terminals voted in the Teamsters but FedEx refused to bargain and those terminals eventually decertified. In order to be a real threat of organizing there would have to be a change in status for Express. That isn't happening anytime soon even if Express started delivering ground freight tomorrow. There was a clear line separating the two OPCOs completely as to keep that status. Network 2.0 throws that separation out the window. Raj and the board are essentially giving the middle finger to the Teamsters and FedEx drivers.

Right and Freight can unionize locally, that's why they pay so much better than Express. Express employees have this impossible mountain to climb to get everyone on board nationally to vote to unionize. If they got rid of that RLA protection, then Express could join unions locally, just like Freight can. Also, FexEx cannot refuse to bargain with a union once they are allowed in. That violates federal law to bargain in good faith. They decertified because Freight gave their workers almost everything a union could offer, so there was no need to stay in their union. That's what would happen at Expess if the RLA protection went away. So anyway, FedEx is gong to send Express volume to Ground (merging the 2 companies), but will use contractors at Ground so they can't unionize. FedEx has thought this all out.

 

[Gone fishin]

Right and Freight can unionize locally, that's why they pay so much better than Express. Express employees have this impossible mountain to climb to get everyone on board nationally to vote to unionize. If they got rid of that RLA protection, then Express could join unions locally, just like Freight can. Also, FexEx cannot refuse to bargain with a union once they are allowed in. That violates federal law to bargain in good faith. They decertified because Freight gave their workers almost everything a union could offer, so there was no need to stay in their union. That's what would happen at Expess if the RLA protection went away. So anyway, FedEx is gong to send Express volume to Ground (merging the 2 companies), but will use contractors at Ground so they can't unionize. FedEx has thought this all out.

Exactly , ground will become company employees so we can rebuild the trust of the Fedx brand to the public. I agree wholeheartedly.