fedex transition

bacha29

Well-Known Member
Counting the addition of HD in 2003 the terminal overall went from 4 routes in the beginning to 18 today that's 15 routes in 24 years. Negotiate? You have got to be kidding. Every year we were handed a new set of rates , it was take it or leave it. No doubt that when ISP is in place the revenue pool offered be based primarily on the flawed CZ formula making it tough for the guy who now has the route and is sending 2 trucks down in there every day and only getting paid for one is going to have a tough time trying to move X with regard to the money.
 

bacha29

Well-Known Member
On the very first day I had in the truck with me the guy who set up the routes. He was a retired UPS industrial engineer who lived in downtown Manhatten. Later in the day when we were out in the bum :censored2:s boring around lookin for a stop. He starts to notice mailboxes wth addresses starting with R.D. He looked at me and said "What does R.D. stand for?". I said, "Do you mean to tell me that you never measured off the R.D.'s? He just sat there with that dumbfounded look on his face. Oh I fought about it but it went nowhere because ours was a terminal that was designated for closing twice in it's first 3 years of operation. They were losing enough money as it was and Bacha's corezone inaccuracy's were no concern of their's . Understand the terminal bldg was just an old tin garage the garbage man owned and the operation was simply a training center for entry level managers . We went through 5 of them in the first 7 years. Now when we moved into the new building in 2009 just 4 miles down the road my CZ fell 23 dollars a day. Of course I squawked about it because the contract I signed stated that the CZ would never fall by more than 10 dollars a day. Their answer. "When in the case of moving to a new building the prior core zones no longer apply". Now do you see what I'm getting at when I tell that they have plainly stated that there is nothing in that unilaterally drafted an implemented contract that is binding upon that company? Hopefully you guys now will understand that the pathway to wealth accumulation is not found by putting on more trucks but getting in place the contract language that will protect what you already have because around your individual terminal you may think that you are top cock but in overall scheme of things you are nobody regardless of how may routes you have or how successful you are at courting the terminal managers favor.
 

STFXG

Well-Known Member
Negotiating will be for the ISP transition. And in other words... No. You never had the core zone audited. Did you go through contractor relations? Did you go through RESOLVE? Or did you just gripe to the terminal manager and took it?
 

Cactus

Just telling it like it is
That's not insight it is opinion. Do you honestly believe any of us think he has our best interest at heart. If that is insightful to you my kid has some Bearenstain Bear books you may find rather intriguing.

When I do look for "insight" it comes from others actually in the business not disgruntled express employees (outsiders).

Don't have to look far to validate my facts. Just because they aren't posting on this board doesn't mean there are not hundreds of us making good money, growing, and thriving. Ex wants the job done cheap hence the model goes nowhere and for most like me that plan to be in 5-10 years it works just fine.
Smith is predatory and Ground is not safe from the ways of the weasel. Think what you want but the red flags are flying high.
 

dmac1

Well-Known Member
Why can't you make money in ISP in a rural area? The business model has always leaned toward more dense areas. That doesn't mean rural areas can't make decent money. Under IC rural routes have always been set up to make around the same profit as a city route. They just have slower growth.

Once growth gets to the point where you are working 11-12 hours a day, it becomes almost impossible to make any more money. Fedex wants you to add a supplemental, and now you need to pay for two vehicles and an extra driver. I made decent money as a single route operator on a rural route- 350-400 miles a day, 50 stops- that took 10 hours plus however long they took to sort HD packages. Then one year, after I had aquired two more routes, I ran a supp at peak, just to keep up, and they started adding Ground stops, and refused to take them off after peak was over. They were forcing me to go broke slowly or try to adhere to the HD contract that said I wasn't allowed to take anything other than HD packages.

Of course, they cancelled my contract with no notice, and then they
had to hire 4 more contractors to replace me once one of those first hired to replace me was fired within a month after he couldn't do the extreme rural route. When your route doesn't border another route, and has National forest on 3 sides, and includes areas like Mt. Ranier, even a high core zone won't support two trucks. My core zone for that route was $125 a day, but I was spending $60+ a day on gas, plus tires wore fast, and oil changes and maintenance was 4 times what a city route might have. And that was my most efficient truck- a short wheelbase Express van. And since I already had over 20% of the HD routes, they would never have given me another route at that time.

Fedex makes up their own rules.
 
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instiches

Well-Known Member
Your fuel expense doesn't really have any relevance. If you were smart enough to understand the fuel subsidy, it doesn't matter what you were spending, because you are being reimbursed per mile the same as a city route. And you would more than likely be coming out ahead of the city guys on net fuel cost per mile because your truck would be running at a higher MPG.
 

bacha29

Well-Known Member
STFXG: It all comes back to the language and the inability of a contractor to make them abide by their own language. The only recourse was arbitration but they reserved the right to decide who sits on the panel.. I even brought the matter to the attention of the regional manager but remember their compensation is performance based . The better the terminal performed the more money managers made for themselves. As for contractor relations God I hope by now that you realize that contractor relations has one task and one task only. That is to reinforce the iron fisted will and absolute power of their employer.The credibility of the CR guy we had was so low that we got up and walked out on him from that point onward we wouldn't even meet with him. The guy came in took care of the paper work and left.. Later he sent in his subordinate we agreed to meet with her but due to the fact that we threw back in her face all of the propaganda she was programed to spew we had her in tears. Again it all comes down to the contract language. As for Mr. instiches. Better MPG? The vehicle I used out in that God forsaken places I had to try to get in and out of in the winter was a Ford E350 Quigley 4X4 conversion with 7.3L Ford Powerstroke Diesel with the pump set up as high as it will go. On a good day it got 10MPH. Out were I was there is no such thing as too much power. On a really bad day the TM asked me what I needed. I said," A U.S. Army deuce and a half". He said " you get it I'll approve it"
 

MrFedEx

Engorged Member
Smith is predatory and Ground is not safe from the ways of the weasel. Think what you want but the red flags are flying high.

I think that Ground folks are learning the ways of our Dear Leader Weasel and don't like it very much. Here's what I think. Ground is the cash cow that keeps this garbage scow of a corporation afloat. Without the scam, FDX looks weak to those all-important investors who keep the stock high. Fred isn't content with making 20% profit or whatever ridiculous amount it's currently at...he wants more. Squeezing the contractors and cutting their take is his obvious answer. If you think Ground is shoddy and unsafe now, wait until all the blood has been let, and then see where the contractors are forced to cut corners to keep their share of the pie.

FU, Mr. Smith.
 

FedGT

Well-Known Member
26ft trucks, moving a few thousand pieces a day. 40-60 stops about 60 miles/day. I lose money on them most weeks.
40-60 out of a straight truck daily? That would suck!
My straight truck does 15 deliveries which maxes out capacity and 6 pickups. He has 2 hrs of downtime almost everyday but just can't fit anymore on him. Most I ever ran out of a bulk truck was 67 and 750 delivery packages through 4 cities, was a long day.
 

bacha29

Well-Known Member
I have seen many cases where they have undersized gas engines installed believing that they will get better MPG only to discover that that is not the case because they have to work twice as hard to make power and as a result last half as long.
 

echo

Active Member
Had a meeting this week about compliance. Of course transition came up. Mgmt says contractors can merge to reach scale and routes don't have to touch. Thats not what I have been hearing from guys who have been thru it. I pointed out I have never seen X make a decision based on what is good for a contractor only what is good for X. Since mgmt won't be involved in negotiations I have serious doubts that they would approve a CSA that is all over the map. Have any of you guys seen an area like that get approved?
 

It will be fine

Well-Known Member
Had a meeting this week about compliance. Of course transition came up. Mgmt says contractors can merge to reach scale and routes don't have to touch. Thats not what I have been hearing from guys who have been thru it. I pointed out I have never seen X make a decision based on what is good for a contractor only what is good for X. Since mgmt won't be involved in negotiations I have serious doubts that they would approve a CSA that is all over the map. Have any of you guys seen an area like that get approved?
At transition they'll approve anything that's at scale. It's the last time they will though. If you want to buy a zip code later it will have to be contiguous with what you own.
 

It will be fine

Well-Known Member
I can see where this would make sense as it would be much easier to move work, if needed, between adjacent areas.
Meh, it's less important than you'd think. Often it's advantageous to have outlying routes. I've got guys that are farther out that cover later pickups because they drive by on their way in, otherwise I'd have drivers sitting for an hour waiting for 5 boxes.
 

echo

Active Member
Could of swore I read somewhere on here the areas have to touch. Not going to bother trying to find it, maybe I missunderstood. Thanks to everyone for answering my question. It does help that I'm not limited on who I sell to.
 

Bounty

Well-Known Member
Could of swore I read somewhere on here the areas have to touch. Not going to bother trying to find it, maybe I missunderstood. Thanks to everyone for answering my question. It does help that I'm not limited on who I sell to.
As iwbf said X will approve everything now. However, changes are coming again I can promise that, be very careful if you decide to get deeper into the scam. The guy who bought my route (along with a few others) to get to scale called me, to see if I wanted back in. After I almost passed out from laughter, I told him I would not get back into the scam if he gave it to me for free. X is probably going to do something soon that will probably eliminate half of the contractors. BEWARE!!!!
 
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