Ground non ISP

dmac1

Well-Known Member
Could get out smaller contractors but that isn't their concern. A contractor with 5 employees will not try to make claims they are employees, they are invested in the business and the model. They want to get out the people that have no interest in that, have nothing to lose and want to sue FedEx to be employees.


People like me didn't sue to become employees. We sued because we were treated like employees. I wanted the true independence of an IC that I had had before, and as a Day one HD contractor, many promises were made that were not kept.
 

FedGT

Well-Known Member
Hahaha!!!

No way in hell are those real numbers, plus only being able to show a full year of what they did is going to hamper that sale and price a little bit.
 

dmac1

Well-Known Member
Fedex is increasing the contractor control. They don't want more contractors in a terminal they are learning less contractors the better. They are increasing the amount you can own case by case I know a contractor that has 53% of a terminal. What they are looking for is guys that can handle the volume and the headache.

The more routes/drives someone has, the more attractive it becomes to the Teamsters. DHL faced organizing efforts in terminals with one 'contractor' in control of the whole terminal.
 

FedGT

Well-Known Member
People like me didn't sue to become employees. We sued because we were treated like employees. I wanted the true independence of an IC that I had had before, and as a Day one HD contractor, many promises were made that were not kept.
Okay, I hear it going both ways, regardless of that the actual point of the post still applies.
 

echo

Active Member
Basically what we were told in Georga is the timetable will be posted in Feb. It begins summer of 2016 and completes in 2020 like others here have posted. It seems alot rides on overlap. Eventually HD will be phased out. The idea being ground will absorb / bid on HD zipcodes that already match. When negotiations begin all contracts ar non renewable . The two things I am trying to gey info on are the cash incentives to help get to scale and the cash incentives for those not to scale to sign limited contracts to prevent service disruptions until a CSA takes over.
 

bacha29

Well-Known Member
When talking about scale in terms of 500+ stops , doing that at the terminal I was in would involve 35+ zip codes stretched across atleast 4 rural counties. Therefore while it is important to discuss such matters as how the ISP impacts matters at a given terminal keep in mind that demographics and the strengths and weakness of the economy a terminal serves is widely varied. Right from the very outset it was quite clear that the last thing the area I served needed was another small box hauler. It is therefore important to identify the most common consequences the conversion is going to have on all terminals. Management skills will not have nearly the impact as will a dying local economy as well as X's hard bargaining, leaving some contractors faced with the greatest threat of all, the law of diminishing returns and any propective buyer will spot it immediately.
 

STFXG

Well-Known Member
Basically what we were told in Georga is the timetable will be posted in Feb. It begins summer of 2016 and completes in 2020 like others here have posted. It seems alot rides on overlap. Eventually HD will be phased out. The idea being ground will absorb / bid on HD zipcodes that already match. When negotiations begin all contracts ar non renewable . The two things I am trying to gey info on are the cash incentives to help get to scale and the cash incentives for those not to scale to sign limited contracts to prevent service disruptions until a CSA takes over.
That information is all available on mygroundbiz. I'm assuming you've already ready the sample agreements and other information? The incentives have been known for years. Nothing has changed.
 

echo

Active Member
Yeah read some sample incentives . It listed a $ amount for signing cessation of current contract date and an unknown amount for releasing X from claims. Was hoping to hear from some that have been thru it already. Better to sell now if your lucky but if not and sale at a loss later how did it go ?
 

Crozz

Well-Known Member
When talking about scale in terms of 500+ stops , doing that at the terminal I was in would involve 35+ zip codes stretched across atleast 4 rural counties. Therefore while it is important to discuss such matters as how the ISP impacts matters at a given terminal keep in mind that demographics and the strengths and weakness of the economy a terminal serves is widely varied. Right from the very outset it was quite clear that the last thing the area I served needed was another small box hauler. It is therefore important to identify the most common consequences the conversion is going to have on all terminals. Management skills will not have nearly the impact as will a dying local economy as well as X's hard bargaining, leaving some contractors faced with the greatest threat of all, the law of diminishing returns and any propective buyer will spot it immediately.
It's 5 PSA as well not just 500 stops. Also I know if you have less than 31 PSA in a terminal. They have a scale of 400 stops 4 PSA. They may have a 300 stop 3 PSA rule in much smaller terminals but I'm not aware of them. I just know the two tiers at the moment.

Also managers have no say in how negotiations go they are not involved. If a contractor was to refuse the work then I can see the manger getting the next few contractors involved.
 

echo

Active Member
Not all of your trucks run 6 days ( Home packages Sat. Ground packages Monday) but you or your manger will be responsible for your area 6 days a week, Sunday is the only day i can relax.
So even when it all becomes ground there will still be HD packages?
 

Crozz

Well-Known Member
So even when it all becomes ground there will still be HD packages?
Fedex will still charge for HD and it will be sat premium. Your Monday HD package will be limited on Monday hence why FedEx wants one CSA running in the area you may only need 3 HD trucks in your area on Mondays not 7 if that's what you normally run.
 

MoneyStar

New Member
Florida had ours but I blew it off. Too afraid I might strangle somebody. It Will Be Fine, what are the benefits you see with ISP? I just hate that they can cancel a contract FOR SEEMINGLY ANY REASON if you get on their bad side.
 

MoneyStar

New Member
So if I own Ground routes only (unfortunately less than 5 but willing to merge) and NO HD routes, what is the chance Fed Ex will let me stay in my contracted area without any HD routes?
 

FedGT

Well-Known Member
So if I own Ground routes only (unfortunately less than 5 but willing to merge) and NO HD routes, what is the chance Fed Ex will let me stay in my contracted area without any HD routes?
As long as you are 5 when merged you are staying. They incourage merging ground/HD it is not a requirement to contract.
 

MoneyStar

New Member
As long as you are 5 when merged you are staying. They incourage merging ground/HD it is not a requirement to contract.
Thanks GT, but you know how X is, don't you think they are going to try and work us against each other? The HD guys in my area have many more routes than I do. When they tell you "having 5 routes will give you a right to negotiate" that's scary language.
 

It will be fine

Well-Known Member
Florida had ours but I blew it off. Too afraid I might strangle somebody. It Will Be Fine, what are the benefits you see with ISP? I just hate that they can cancel a contract FOR SEEMINGLY ANY REASON if you get on their bad side.
They've always been able to cancel a contract for anything. The bigger you are the bigger a PITA it is for them to do that, so you'd have to screw up badly for a decent amount of time before it happens in ISP. They've taken everyone down to one year deals now to make it easier which is unfortunate. It's easier for them to accept bids for a work area than to pull a contract in the middle of the term.
Management is more hands off in ISP. I'm sure they've been moving that way everywhere in the last few years anyway, but when we transitioned they were noticeably retrained to stay away from day to day operations.
The point of ISP and scale is to ensure the person designated as the contractor won't successfully sue for employee benefits. If you have at least 5 trucks on the road it would be hard to be driving 40 hours a week consistently. That's the entire goal. Management will follow up when your drivers screw up, but that's about it. They don't pay attention to how the routes are cut or who's driving them. They don't pay attention to how I spend my time or what I do daily. They just care about the results.
 

FedGT

Well-Known Member
Possibly. With them hard to know. I have no idea who they would side with if it came down to things. I know Ground drivers would be able to facilitate HD a lot better than HD to Ground. I am not saying there is any difference in the quality or trying to say anything about what side is better, or insinuating anything that will incite a back and forth argument between Ground and HD.
Logistically speaking if they told me tomorrow that I will have a full route of HD I easily have the capacity to handle it, possibly on just one already loaded truck. If the majority of HD were told they have one of my full routes with 65 OS packages and another 200 that who knows how aren't classified OS, there would be no way. There would be a lot more change that an HD contractor would have to implement in terms of large investment in fleet capacity, driver mentality to make them stay out for an extra couple hours waiting for damn pickups, and dropping trucks back off to the terminal, and re testing of their drivers IF FedEx would clear their "experience" as like sized vehicles (if not then you have to get new drivers too).
Who knows long term what could happen but I would have a hard time believing they are just going to pull the plug on large HD guys that are doing a great job.
 
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dmac1

Well-Known Member
Yeah read some sample incentives . It listed a $ amount for signing cessation of current contract date and an unknown amount for releasing X from claims. Was hoping to hear from some that have been thru it already. Better to sell now if your lucky but if not and sale at a loss later how did it go ?
Better to just let them fire you, and then file for UI than to sign a release.
 
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