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Going "Viral"
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<blockquote data-quote="Ricochet1a" data-source="post: 998407" data-attributes="member: 22880"><p>If you are asking, "Does Express intend on using "private" cartage agents?" - the answer is a definite NO!!!</p><p></p><p>Everyone knows how FedEx obsesses about control. FedEx wants to have its cake and eat it too. The "non-private" cartage agent is Ground - and everyone knows how much control FedEx exerts over these "independent" entities. </p><p></p><p>I have heard of NO PLANS to do away with having Express personnel deliver overnight product. NONE whatsoever. Non-overnight volume is another story. FedEx has gone to great lengths to "develop" a low cost cartage agent for low priority air cargo though - it is called FedEx Ground. </p><p></p><p>As far as any legal concerns as to using an outside cartage agent for delivery of product (overnight or non-overnight), there are none. The reason why it isn't done is solely due to economics. Cartage agents are only cost effective when low volumes of product are involved from a single carrier - and when the cartage agents can contract with MULTIPLE carriers for final movement of product. The cartage agent acts as a consolidator, taking the volume from multiple carriers, and getting it moved from the airport to its final destination. </p><p></p><p>When a single carrier (Express) gains the economies of scale in terms of sheer volume of product to be moved, it is more cost efficient for it to have its employees do the ground movement of the volume. </p><p></p><p>However, this economy of scale can be threatened (for the company), if the employees of that single large carrier choose to organize, and bargain for compensation NOT on the basis of prevailing wage rate - but RATHER on the basis of cost comparison of their employer to use contract labor (open market cartage agent), compared to company employees. <em>FedEx Ground WOULDN'T qualify as an "open market" cartage agent - nothing illegal about that. </em>In otherwords, the employees of that large carrier (Express...) would try to get some of that cost savings the carrier gets from their economy of scale - placed into THEIR pocket instead of the shareholders.</p><p></p><p>I've said it before, unions enable employees to compete NOT with the unemployed, but rather "compete" with the business plan of their employer. The better the business plan of their employer (the greater the synergy of operations within that company, creating cost efficiencies compared to open market contracting of services/goods). the better the chance the union membership has to increase their wages, ABOVE prevailing market wage rates. </p><p></p><p>This has a legitimate societial function, since it acts as a non-governmental "check" on "excessive profits" of any company. If a company has such a superior business plan (they are generating profits hand over fist), the company's labor has the ability to bargain for compensation at a rate ABOVE prevailing wage rate - "sharing" in that successful business plan. It is what created the middle class in this country - the synergy of an environment favorable for business growth, COMBINED with the ability of labor to bargain for wages above market rate if their employer is truly successful. It provides the necessary "balance" between the needs of owners of capital and the providers of labor, which unite to create profitable businesses and middle class lifestyles for those who work for those businesses.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 998407, member: 22880"] If you are asking, "Does Express intend on using "private" cartage agents?" - the answer is a definite NO!!! Everyone knows how FedEx obsesses about control. FedEx wants to have its cake and eat it too. The "non-private" cartage agent is Ground - and everyone knows how much control FedEx exerts over these "independent" entities. I have heard of NO PLANS to do away with having Express personnel deliver overnight product. NONE whatsoever. Non-overnight volume is another story. FedEx has gone to great lengths to "develop" a low cost cartage agent for low priority air cargo though - it is called FedEx Ground. As far as any legal concerns as to using an outside cartage agent for delivery of product (overnight or non-overnight), there are none. The reason why it isn't done is solely due to economics. Cartage agents are only cost effective when low volumes of product are involved from a single carrier - and when the cartage agents can contract with MULTIPLE carriers for final movement of product. The cartage agent acts as a consolidator, taking the volume from multiple carriers, and getting it moved from the airport to its final destination. When a single carrier (Express) gains the economies of scale in terms of sheer volume of product to be moved, it is more cost efficient for it to have its employees do the ground movement of the volume. However, this economy of scale can be threatened (for the company), if the employees of that single large carrier choose to organize, and bargain for compensation NOT on the basis of prevailing wage rate - but RATHER on the basis of cost comparison of their employer to use contract labor (open market cartage agent), compared to company employees. [I]FedEx Ground WOULDN'T qualify as an "open market" cartage agent - nothing illegal about that. [/I]In otherwords, the employees of that large carrier (Express...) would try to get some of that cost savings the carrier gets from their economy of scale - placed into THEIR pocket instead of the shareholders. I've said it before, unions enable employees to compete NOT with the unemployed, but rather "compete" with the business plan of their employer. The better the business plan of their employer (the greater the synergy of operations within that company, creating cost efficiencies compared to open market contracting of services/goods). the better the chance the union membership has to increase their wages, ABOVE prevailing market wage rates. This has a legitimate societial function, since it acts as a non-governmental "check" on "excessive profits" of any company. If a company has such a superior business plan (they are generating profits hand over fist), the company's labor has the ability to bargain for compensation at a rate ABOVE prevailing wage rate - "sharing" in that successful business plan. It is what created the middle class in this country - the synergy of an environment favorable for business growth, COMBINED with the ability of labor to bargain for wages above market rate if their employer is truly successful. It provides the necessary "balance" between the needs of owners of capital and the providers of labor, which unite to create profitable businesses and middle class lifestyles for those who work for those businesses. [/QUOTE]
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