FedEx Freight and LTL to Merge/ 1 Express District Abolished

Discussion in 'FedEx Discussions' started by MrFedEx, Sep 16, 2010.

  1. MrFedEx

    MrFedEx Engorged Member

    FedEx Freight and FedEx National LTL are going to "consolidate" operations, and 1,700 people will be let go. At Express, the Heartland District will be dissolved, but nobody will be laid-off. That's the word in the media today. Swell.

    What this really means is that this should be a wake-up call for Freight and LTL drivers to go union. I don't know how the 1,700 number breaks-down, but I do know that hours-cutting and other FedEx numbers shaving games have been the norm for awhile. Perhaps the cuts will be mainly in the management and clerical ranks...I don't know.The honeymoon is over folks, and now you're getting a taste of how Fred Smith conducts business. Your best bet is to protect your interests as best you can, and since you are not restricted by the limitations of the Railway Labor Act, perhaps you'd better start signing some cards.

    The Heartland closure means defacto layoffs, because even though everyone is going to be offered a job elsewhere at Express, how many of those employees can afford to move on what FedEx pays, especially when selling your home doesn't make economic sense these days. Thanks, Fred!
     
  2. ex fed exer

    ex fed exer New Member

    remember, at fed ex you are all "at-will employees" ask your manager or legal what that means.

    seig heil and smile.
     
  3. MrFedEx

    MrFedEx Engorged Member

    Exactly. One has to wonder if the Watkins (National LTL) purchase was originally made with this merger as part of the plan. When Bill Logue went over to FedEx Freight from Express, that should have been a clear signal that the feces was about to hit the fan, and that Express-style tactics and cost-cutting would become the norm. Logue is a major A-hole. Why would you send a hatchet man from Express over to Freight in the first place if it wasn't to clean house?
     
  4. MrFedEx

    MrFedEx Engorged Member

    I should add that Logue will undoubtedly receive a handsome reward for his efforts. I'm guessing it will be in the form of a substantial raise or bonus, and not a paper BZ like we get over here at Express. Way to go, Bill!!
     
  5. Cactus

    Cactus Just telling it like it is

    Precisely and presicely.
     
  6. FedEx2000

    FedEx2000 New Member

    While I'm not happy about the 1,700 people losing jobs, you don't need two facilities/drivers serving the same area. I had a good friend go to Freight from Express about 4-5 months ago, possibility he may get let go being so low on the totem pole. They should have been run together from the start, as we bought them, IMO. Merging districts is nothing new either, we merged a couple a few years back and UPS did the same thing either last year or earlier this year I believe.
     
  7. MrFedEx

    MrFedEx Engorged Member

    OK, then why did FedEx purchase Watkins (National LTL) in the first place?
     
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Do you think they may have had this merger in mind when making that purchase?
     
  9. FedEx2000

    FedEx2000 New Member

    Because American Freightways (Freight) mainly serviced the midwest and east coast and Watkins (LTL) mainly serviced the western US(Or vice-versa, can't remember for sure). Purchasing both provided nationwide coverage, yet they were kept separate, hence why I think they should have been together from the start.
     
  10. MrFedEx

    MrFedEx Engorged Member

    Exactly. See my earlier post.
     
  11. MrFedEx

    MrFedEx Engorged Member


    OK, so FedEx purchased Viking (FedEx Freight/West) and American Freightways (FedEx Freight/Midwest and East Coast) for nationwide truckload coverage. Then they buy Watkins (National LTL) to cover the Less Than Truckload segment. But didn't the Watkins route structure basically duplicate the Viking route structure? In other words, why buy an LTL carrier when you've already got a truckload carrier in place that can do LTL as well? Maybe Watkins had authority that FedEx needed, and this was the time to seal the deal and consolidate.

    I don't pretend to know the trucking business, but I've got to believe this has been in the works for awhile. That's just the way FedEx does business. I did some research and saw that the former Watkins management lasted less than a year into the FedEx regime, which is telling. Kind of like the Flying Tigers merger in 1989 where most of the Tigers management were gone in short order....undoubtedly by design. Everyone knows that the only reason FedEx bought Tigers was for their routes to Asia.
     
  12. vantexan

    vantexan Well-Known Member


    Shouldn't we be glad about all the consolidation? They closed down the Alamo district this year too. Are they possibly rooting out the redundancy, trimming costs ahead of the very possible likelihood of a union?
     
  13. MrFedEx

    MrFedEx Engorged Member

    If they really want to root-out redundancy, they need to start in Memphis with the folks who think they "know" what is happening in the field. There is a lot of dead wood residing within the cubicles, and since they won't be laid-off, they can be offered jobs as couriers. What a reality check that would be.
     
  14. quadro

    quadro New Member

    You make it sound like this is something unique to FedEx. For all companies that have at-will employees it still isn't that easy to discharge someone in most cases.
     
  15. LTFedExer

    LTFedExer New Member

    They couldn't hack it. This I agree with....(the entire statement).
     
  16. newgirl

    newgirl Member

    I think we bought Watkins for their Canada routes. It was pretty obvious at the time that there would be consolidation. It was like when we bought Flying Tigers.
     
  17. newgirl

    newgirl Member

    The announcement was that 100 "centers" were closing. I read that as trucking centers. (Plus we don't call them centers we say stations) but now I am wondering with the mention of the Heartland district being dissolved, plus CEFA in Boston closing if they mean 100 centers corporation wide, which may include Express. Someone told me that is what the managers in their station said.

    And for Congress and the vote, that's not going to happen unless the Dem's pull off a miracle in November.
     
  18. vantexan

    vantexan Well-Known Member

    Pretty certain as they combine Freight and LTL they will be closing down the installations, the 100 centers, that are no longer needed.
     
  19. MrFedEx

    MrFedEx Engorged Member

    There you go. As far as I know, Viking never ran Canada, so that sounds like a perfect reason to buy Watkins. It was probably obvious to everyone but the Watkins employees, who were led down the Primrose Path by FedEx. I'm guessing they see the light now. Welcome to BC.