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
FedEx Ground Moving Via Express?
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: 560064" data-attributes="member: 22880"><p>Exactly</p><p> </p><p>The closeness of the relationship in this case DOES matter because of the artificial divide between Express and Ground. Express and Ground are organized with one primary intent, to keep unions out at any expense. Express has the RLA and Ground has the IC model. The reality isn't as important here as is the politics and perception. </p><p> </p><p>The more and more it gets out that Ground and Express have "ties", the less and less Fred will be able to keep arguing that they are completely separate operating companies that should have different rules attached to each regarding the status of employees (or those who just happen to wear a FedEx uniform, but aren't "officially" employees).</p><p> </p><p>Fred's plans include the integration of Express and Ground to the extent where Ground will someday soon start delivering non-overnight Express volume. This will be pulled off with a changing of money from one pocket of FedEx Corporation to the other. Express will "pay" a fee per piece that is transferred to Ground for delivery, and Ground will receive that fee to cover their costs of making said delivery. From the stand point of the "separate" operating companies (Express and Ground), it will be a payment for service provided by another "company". From the perspective of FedEx Corporation, it will be a movement of funds under the Express ledger, over to the Ground ledger. FedEx keeps all the money under its name, and is able to get delivery accomplished with the lower cost structure of Ground. Fred-o-nomics at work. </p><p> </p><p>It is of course legal, but it does raise issues about the supposed independent operation of each company under FedEx Corporation. When the cooperation between companies under a master corporation is this close, it does create issues with perception and the politics of having both the RLA and IC model operating at the same time. No one but Fred would even dream of trying to pull off such a charade, but it looks like he may just pull it off. </p><p> </p><p>The way it looks, Express will keep its RLA classification, and Fred will wait for the storm to die down before he starts diverting non-overnight volume over to Ground. Once this happens, he won't have to worry about Express unionizing. Express will be turned into a near total part-time employee operation, and Ground will be chugging away delivering packages for a fraction of the cost structure of either Express or UPS. The days of FedEx providing middle class employment for its employees (whether they are Express of the Ground "helpers") will have come to an official end. FedEx will have completed its transformation into a low wage company, with a core of salaried professionals making sure it all keeps moving on time. The dream of every MBA out there.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 560064, member: 22880"] Exactly The closeness of the relationship in this case DOES matter because of the artificial divide between Express and Ground. Express and Ground are organized with one primary intent, to keep unions out at any expense. Express has the RLA and Ground has the IC model. The reality isn't as important here as is the politics and perception. The more and more it gets out that Ground and Express have "ties", the less and less Fred will be able to keep arguing that they are completely separate operating companies that should have different rules attached to each regarding the status of employees (or those who just happen to wear a FedEx uniform, but aren't "officially" employees). Fred's plans include the integration of Express and Ground to the extent where Ground will someday soon start delivering non-overnight Express volume. This will be pulled off with a changing of money from one pocket of FedEx Corporation to the other. Express will "pay" a fee per piece that is transferred to Ground for delivery, and Ground will receive that fee to cover their costs of making said delivery. From the stand point of the "separate" operating companies (Express and Ground), it will be a payment for service provided by another "company". From the perspective of FedEx Corporation, it will be a movement of funds under the Express ledger, over to the Ground ledger. FedEx keeps all the money under its name, and is able to get delivery accomplished with the lower cost structure of Ground. Fred-o-nomics at work. It is of course legal, but it does raise issues about the supposed independent operation of each company under FedEx Corporation. When the cooperation between companies under a master corporation is this close, it does create issues with perception and the politics of having both the RLA and IC model operating at the same time. No one but Fred would even dream of trying to pull off such a charade, but it looks like he may just pull it off. The way it looks, Express will keep its RLA classification, and Fred will wait for the storm to die down before he starts diverting non-overnight volume over to Ground. Once this happens, he won't have to worry about Express unionizing. Express will be turned into a near total part-time employee operation, and Ground will be chugging away delivering packages for a fraction of the cost structure of either Express or UPS. The days of FedEx providing middle class employment for its employees (whether they are Express of the Ground "helpers") will have come to an official end. FedEx will have completed its transformation into a low wage company, with a core of salaried professionals making sure it all keeps moving on time. The dream of every MBA out there. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
FedEx Ground Moving Via Express?
Top