How about some rampant speculation?

[vantexan]

There are lots of places like the one with the bad jobs that you've described. I lived in one at one time. I hated it because, among other things, there wasn't much of a future there. I moved to a place with more opportunity. Problem solved. That town wasn't the fault of "the system," or of rich people. Some places are crap, others are not.

My hometown, Leesburg, FL, once had the world's largest refrigerator at the Minute Maid plant. The two major industries were always oranges and retirees. Retirees won out, most of the groves have become suburbs. The country's top retirement community, the Villages of Lady Lake, is just north of town. It's literally Disney World for retirees. Unfortunately most jobs in the area pay squat as it's all restaurants and retail. The only sizable industry that pays is healthcare. But if you are a retiree who likes to golf, boat, fish, eat out, and enjoy major tourist attractions within a 60 mile radius, then it's not crap.

 

[vantexan]

That town wasn't the fault of "the system," or of rich people. Some places are crap, others are not.

I suspect alot of what you describe as crap towns once had at least one major factory that provided good jobs and a sound base for the local economy. People had roots in those towns. They and their family and friends were born there, played little league, went on dates at the drive-in, graduated from high school, got baptized there, walked down the aisle at their church with their high school sweetheart, watched their kids grow, and buried their beloved parents and grandparents. Now they're being uprooted and forced into McJobs in impersonal big cities because a relative few seek ever bigger profits. Problem not solved. Life can't be boiled down into what's in the bank account or in the 5 car garage. The system sucks. Period.

 

[59 Dano]

Combining Ground and Express is in the works, so you absolutely will have Express dispatchers sending pickups to Ground drivers.

If you say so.

 

[59 Dano]

I suspect alot of what you describe as crap towns once had at least one major factory that provided good jobs and a sound base for the local economy. People had roots in those towns. They and their family and friends were born there, played little league, went on dates at the drive-in, graduated from high school, got baptized there, walked down the aisle at their church with their high school sweetheart, watched their kids grow, and buried their beloved parents and grandparents. Now they're being uprooted and forced into McJobs in impersonal big cities because a relative few seek ever bigger profits. Problem not solved. Life can't be boiled down into what's in the bank account or in the 5 car garage. The system sucks. Period.

This isn't 1962, when those crap towns had a major factory or 3 where anyone out of high school (if he felt like graduating) could get an adequate-to-nice job and expect it to last until he retired. Technology advanced, as did the workforces in most of the rest of the world, and throwing another warm body from Sheboygan at the assembly line was no longer the most efficient way of increasing revenue and profits.

The system doesn't such any more than it did in 1962, when the people who grew up 20 or 30 years prior didn't like the changes that had been made and weren't capable of adapting. I'll probably be saying the same thing in 20 or 30 years when those who are much younger are wondering why the old guy has such a problem with such a neat system.

 

[vantexan]

This isn't 1962, when those crap towns had a major factory or 3 where anyone out of high school (if he felt like graduating) could get an adequate-to-nice job and expect it to last until he retired. Technology advanced, as did the workforces in most of the rest of the world, and throwing another warm body from Sheboygan at the assembly line was no longer the most efficient way of increasing revenue and profits.

The system doesn't such any more than it did in 1962, when the people who grew up 20 or 30 years prior didn't like the changes that had been made and weren't capable of adapting. I'll probably be saying the same thing in 20 or 30 years when those who are much younger are wondering why the old guy has such a problem with such a neat system.

The most telling thing about your post was the reference to the most efficient way to increase revenue and profits. Yes, let's shut down people's livelihood so that we can get richer. Know how to compete with that worker in China? Don't send all your factories to China! Don't let him compete with you! Let China build their own economy, don't exploit them for your benefit and our demise! Get it? And by the way, what's going on in China is exploitation. But hey, if we don't have to pay a couple of hundred extra for our iPad then we'll look the other way...

 

[59 Dano]

The most telling thing about your post was the reference to the most efficient way to increase revenue and profits.

Wanna guess what happens when you don't have enough of either?

Yes, let's shut down people's livelihood so that we can get richer. Know how to compete with that worker in China? Don't send all your factories to China! Don't let him compete with you! Let China build their own economy, don't exploit them for your benefit and our demise! Get it?

I don't know about you, but I wouldn't pay the lawn company to come mow my lawn in the winter when the grass isn't growing. I doubt you would, either. I wouldn't pay for 2 babysitters when I only needed 1, and neither would you.

What's the big deal with China? Do we scream bloody murder when a guy in California or Oregon moves his factory to Podunk, MS or Sleepytown, AL? Nah. Why not? The guy who lost his job is still just as unemployed as he'd be if the factory moved to China.

And by the way, what's going on in China is exploitation. But hey, if we don't have to pay a couple of hundred extra for our iPad then we'll look the other way...

It's exploitation? Alright... We've got a factory full of 'exploited' Chinese workers, and we want to put a stop to the exploitation, so we close down the factory. They were working 70 hours/week for $150. Now they --the ones that managed to find work-- are working 70 hours/week in the fields for $100. I don't think we'd get any thank-you notes. The best think to happen to the Chinese worker is the alleged 'exploitation' that's going on there these days because working conditions are steadily improving, as are wages, although at a faster rate.

 

[vantexan]

Wanna guess what happens when you don't have enough of either?
I don't know about you, but I wouldn't pay the lawn company to come mow my lawn in the winter when the grass isn't growing. I doubt you would, either. I wouldn't pay for 2 babysitters when I only needed 1, and neither would you. What's the big deal with China? Do we scream bloody murder when a guy in California or Oregon moves his factory to Podunk, MS or Sleepytown, AL? Nah. Why not? The guy who lost his job is still just as unemployed as he'd be if the factory moved to China. It's exploitation? Alright... We've got a factory full of 'exploited' Chinese workers, and we want to put a stop to the exploitation, so we close down the factory. They were working 70 hours/week for $150. Now they --the ones that managed to find work-- are working 70 hours/week in the fields for $100. I don't think we'd get any thank-you notes. The best think to happen to the Chinese worker is the alleged 'exploitation' that's going on there these days because working conditions are steadily improving, as are wages, although at a faster rate.

Again, let them build their own economy trading with each other. Not our fault that they got waylaid by communism. Same for those factories in Oregon who went to Alabama. Learn to accept enough, stop pushing for more, more, more. And yeah, that applies to us workers too. And when we're paid enough...

Don't think they're being exploited? Surely you know about FoxConn? Licensed manufacturer that produces Apple products as well as computers for other firms. They put nets up to catch suicidal workers who jump off of their buildings. One worker recently crawled to edge of net and dropped to his death. Why? Worked 34 hrs without a break. Every time there's a big new product rollout the workers are pushed to extremes. Things are improving? China doesn't have the labor protections we do. One of the reasons it's so cheap to relocate a factory there. What can you expect from a gov't that was executing prisoners in the morning, then removing vital organs for transplant that afternoon for high paying people from around the world? And there are our companies getting in on a good thing, ramping up those profits for the stockholders.

 

[MrFedEx]

If you say so.

I do say so. Watch for it very soon.

 

[bbsam]

I do say so. Watch for it very soon.

When we arrive for a pickup and it is an express pickup, we enter a non pickup status code and CPC monitors all pickup activity and automatically informs express. I do not know, does the information go to the station or is it routed straight to a courier through the scanner?

 

[whenIgetthere]

When we arrive for a pickup and it is an express pickup, we enter a non pickup status code and CPC monitors all pickup activity and automatically informs express. I do not know, does the information go to the station or is it routed straight to a courier through the scanner?

When we arrive at an on-call pick-up and it's a ground pick-up, we enter code 43 (no package), then asked "Ground Package", click "No" (if we click "Yes", I've been told we are expected to take the package), and leave the package behind, and ask the customer to call the 800 number again and request a ground pup. On more than one occasion the customer decided to ship UPS because they were annoyed they had to schedule another pick-up. And before you say we should take the ground package, we are told to leave ALL ground packages behind, by our senior manager (one of the very few times I agree with our SM).

 

[MrFedEx]

When we arrive for a pickup and it is an express pickup, we enter a non pickup status code and CPC monitors all pickup activity and automatically informs express. I do not know, does the information go to the station or is it routed straight to a courier through the scanner?

I have heard from a very reliable source that Express and Ground dispatching functions will soon be combined. This would make sense, especially if the service shiftover is coming soon. My source could be wrong, but they are high enough up that I doubt it.

 

[FedEx2000]

Is it possible that you are all thinking too hard about this "switchover" of volume? We all know that Ground has improved their service and shaved days off their delivery times. Rather than switching E2/XS to Ground and dealing with the issues of Express picking it up and transferring it to Ground for final delivery, is it possible that Ground may just offer an "upgraded" Ground service that is a 2-3 day commit within a predetermined distance, rather than the current 5 days? I believe the last figure I heard was that 80% of Ground pkgs are delivered within 3 days now. This way there would be no conflict between Express/Ground, and there would not be the extra cost of flying this volume. So it wouldn't be a complete switch, just the gradual shift of customers (with the help of sales) switching to Ground and getting basically the same service for less cost. This would, at least in theory, cause less uproar at Express than a complete shiftover of E2/XS to Ground.

This would also eliminate the need to install caster decking at Ground stations, purchasing Ground trailers with pneumatic rollers, or any other costs associated with Express handling/transferring "Ground" freight. Just a thought.....

And in regards to the comment about a possible 28% increase in Ground stops beginning on July 1st, I think the most reasonable explanation I've seen on here is a large customer such as Verizon (or Apple) switching over to Ground from Express. Verizon returns recently switched over to SmartPost instead of Express billable stamps, and a good percentage of the inbound is E2.......leaving the customers who are willing to pay extra to get it next day via Express. Not sure what Verizon's daily volume is though, and whether it would consist of a 28% increase at Ground.

 

[MrFedEx]

Is it possible that you are all thinking too hard about this "switchover" of volume? We all know that Ground has improved their service and shaved days off their delivery times. Rather than switching E2/XS to Ground and dealing with the issues of Express picking it up and transferring it to Ground for final delivery, is it possible that Ground may just offer an "upgraded" Ground service that is a 2-3 day commit within a predetermined distance, rather than the current 5 days? I believe the last figure I heard was that 80% of Ground pkgs are delivered within 3 days now. This way there would be no conflict between Express/Ground, and there would not be the extra cost of flying this volume. So it wouldn't be a complete switch, just the gradual shift of customers (with the help of sales) switching to Ground and getting basically the same service for less cost. This would, at least in theory, cause less uproar at Express than a complete shiftover of E2/XS to Ground.

This would also eliminate the need to install caster decking at Ground stations, purchasing Ground trailers with pneumatic rollers, or any other costs associated with Express handling/transferring "Ground" freight. Just a thought.....

And in regards to the comment about a possible 28% increase in Ground stops beginning on July 1st, I think the most reasonable explanation I've seen on here is a large customer such as Verizon (or Apple) switching over to Ground from Express. Verizon returns recently switched over to SmartPost instead of Express billable stamps, and a good percentage of the inbound is E2.......leaving the customers who are willing to pay extra to get it next day via Express. Not sure what Verizon's daily volume is though, and whether it would consist of a 28% increase at Ground.

Read Ricochet1a's post from a few days back about the 28% volume increase. If he's right, a couple of major accounts are not going to equal that large of a volume increase. My source, who is highly placed, says that Express and Ground dispatch will soon be combined, and I have little reason to doubt this person. To me, that indicates that Ground will take over both the delivery and pickup sides of the E2/XS products. I could be wrong, and my source could be wrong, but it all seems to make sense if you look at it from the perspective of Dear Beloved Leader, who stands to make more money if he goes through with it. Knowing that Fred has all the integrity of a multiple-offender parolee, I do believe that we've been tossed under the bus....again.

Thank you, Great Supreme Weasel.

 

[Ricochet1a]

I did some asking around about two topics which are on this string: Unified dispatch and Ground making pickups for non-overnight "Express" volume.

On the second, my sources state a definate NO regarding Ground touching Express volume PRIOR to it hitting the aircraft. I've posted on this before, there are definite regulations about "air cargo" which must be adhered to, and given Ground's organization, they cannot touch "air cargo" PRIOR to it entering the line haul (AGFS).

There are clear regulations regarding staffing requirements, training and background checks of individuals that handle air cargo. These regulations apply for all freight from the time it is accepted by the shipper until the time it arrives at its destination airport. AFTER the freight reaches it destination airport, the FAA doesn't care a bit about what happens to that freight. FedEx's offering delivery service after that is merely an additional service for what is traditionally (and legally) air freight. Once air freight leaves the destination airport, it is not covered by FAA (although it is still covered by DOT over the road regulations).

This is why Ground cannot possibly touch any volume that could potentially fly on any aircraft, until AFTER said volume has left the line haul segment and is in its final movement (truck delivery to destination address).

The contigency plan that FedEx has is the one that I've posting about for quite some time. It isn't some "rampant speculation", it is a business plan for which I've seen internal documents outlining the goals, methodology of accomplishing the goals, rationale for implementing the change in business practice and other considerations.

The primary purpose of the plan was to head off possible unionization of Express back in late 2009-mid 2010. There was also a cost savings component to FedEx.

One the first topic (dispatching), my sources state that there is indeed planning to integrate Express and Ground dispatching into an integrated operation to reduce the confusion that customers are experiencing with attempting to get the correct service (Express or Ground) to arrive to pickup their shipments. I was told that there have been accounts lost, since the customers wouldn't invest the time in training their people in recognizing what is Express and what is Ground, and having delays in getting their shipments out in a timely fashion. To many customers, FedEx is FedEx, they either can't or won't comprehend the concept of separately operating companies.

Most customers are doing good to distinguish FedEx from UPS or USPS, forget about the separate FedEx opcos from one another (Express, Ground, Freight, Custom Critical, etc. etc).

I called a current Express dispatcher, and they denied any knowledge of integration of Express and Ground dispatching functions, HOWEVER, they have heard "talk" of something like this coming down the road in the coming year or so. I'd point out that FedEx always tells its wage employees LAST whenever any change is about to be made.

For the dispatchers, the issue becomes, "What opco would they work for?".

My source stated that FedEx would use the same method of placing dispatchers as they do now for many FedEx employees that fall "outside" the strict boundaries of a single opco - they would be moved under FedEx Services.


Just as the whole "vendor" arrangement would be used between Express and Ground, FedEx Services would be the "holding company" for this personnel pool/function and would "bill" both Ground and Express for "services rendered".

The whole thing would be a giant shell game of shuffling money around from one opco to another (gaining the advantages of differing labor law where possible) while maximizing profitability for FedEx Corporation.

What it really is going on is a smoke and mirrors game to keep labor costs as low as possible thoughout FedEx, while simultaneously giving customers the illusion that it is all one integrated company. In reality, it IS an integrated company, that uses the varous opcos to deal with or get around various regulatory and labor laws.

 

[vantexan]

FedEx2000 might have it right about the introduction of 2-3 day service at Ground. Problem is that if it costs less than Express then it will cannibalize Express. Ground can do limited overnight. What if they can get it anywhere in 3 days? Why would anyone use Express for that service if it's much less at Ground?

The one reason it would possibly be Express pickup/Ground deliver is that they can charge Express prices while eliminating Express overtime. That's a pretty good reason for the company to try to make it work.

 

[Ricochet1a]

FedEx2000 might have it right about the introduction of 2-3 day service at Ground. Problem is that if it costs less than Express then it will cannibalize Express. Ground can do limited overnight. What if they can get it anywhere in 3 days? Why would anyone use Express for that service if it's much less at Ground?

The one reason it would possibly be Express pickup/Ground deliver is that they can charge Express prices while eliminating Express overtime. That's a pretty good reason for the company to try to make it work.

You missed the point on cannibalization from Express.

FedEx Corporation doesn't give a damn how a package is moved. What they care about is margin per piece moved.

Ground is already offering "overnight" delivery within areas (about 250-400 miles between drop off point and delivery point). FedEx is actively advertising this and it is indeed canibalizing volume from Express.

It costs customers about one-third as much to move a typical piece by Ground as opposed to Express (taking in a macro approach to costing, excluding overnight). Let's use $21 to move a typical package by Express and $7 to move a typical package by Ground.

If FedEx Corporation can make the same net profit on that package movement regardless of service utilzed (let's use $0.50 as the final profit), then whether a customer chooses to use one service or another is irrelevant. In this case FedEx Corporation has costs of $20.50 to move a typical package by Express and $6.50 to move a package by Ground. The final margin in the pocket of FedEx is the same $0.50.

The whole point of shifting delivery of Express volume over to ground (besides the initial reaction to a possible unionized Express), is to increase that final net profit per piece for FedEx Corporation. The final net profit per piece within Express is actually LESS than Ground is now - thus the deliberate shifting of focus from Express to Ground for customers. FedEx Sales right now barely "sells" Express, they are selling Ground.

The Ground operators can comment on this, but I don't believe that Ground drivers have any sort of sales lead programs like Express does. First of all since they are contractors, but mainly because FedEx sales does all the selling for Ground; whereas they try to get Express Couriers to get as many sales leads as possible (since they don't have the time to chase down all the potential small volume, high margin shippers).

Put simply, FedEx Corporation stands to make a greater final profit on a given package if it is shipped Ground opposed to Express non-overnight service. If a non-overnight package is shipped by Express rather by Ground, FedEx can still get some of the cost advantages of Ground (increasing final margin to FedEx Corp) by shifting final delivery of non-overnight to Ground. Its all about chasing margin.

If FedEx Corporation can offer customers a variety of service levels (time to get to destination), offer those services levels simultaneously (as is done at both Office and Express stations now) AND can garner the same amount of final net profit regardless of how that package is moved, then FedEx doesn't care one whiff how a customer chooses to ship their volume. If FedEx gets the same end profit and can offer customers a cheaper alternative when they don't need overnight (or even 2nd day service), FedEx is jumping all over that.

As to Express overtime, they aren't looking to eliminate overtime, they are looking at eliminating fulltime Couriers. Part-time Couriers don't work long enough to get overtime - problem solved for FedEx.

Everyone needs to stop looking at this as an "Express" or "Ground" issue. They are both run by the same holding corporation and as long as any cannibalization occurs without any loss of final margin for the holding corporation (Ground cannibalizing Express), then all is well from FedEx Corporation's standpoint. If FedEx gets $0.50 in its pocket regardless of how a non-overnight package is moved, then what the customer chooses isn't a concern (Fred gets his in the end). The concern for FedEx is that the customer chooses FedEx instead of UPS or USPS.

What is not "all is well" is what is happening to those who have chosen to make Express a career and are being deliberately, slowly and without corporate admission, tossed under the bus and in the future forced to choose between either leaving "short" of a planned career or choosing to work part-time as a career.

FedEx knows that making such a public admission would cause turmoil within Express and possibly lead to rapid unionization with Express. Thus why all of this is being kept from the eyes and ears of Express wage and most non executive salaried employees. You don't make an announcement that even the idiots would recognize as being the death knell for their career hopes - and not expect bad things to happen.

 

[fedex_rtd]

The ground driver and I get along really well on our route, we even do lunches from time to time. We both have the same area down to the street. 2 years ago we had about equal packages and deliveries, both of us right at 60 or so del and 25-30 pickups for approx 120 packages being del, 100 or so being picked up each. Now, two years later he's been upgraded to a 900 while im still in my 700. He has 20 more deliveries then I at approx 40 more packages. He now picks up 25 more pickups adding nearly 250 packages, he bulks out his 900 each day with 300-400 packages, im still a t 120ish a day. A second ground truck was added to the route to help with his overflow. His contractor simply hired a 20 hour a week guy to del whats left once his pickup cycle begins. Many shipments i used to pickup from customers Now have ground awb's, sales has pulled 7 of my daily pickups due to ground only so many times. Guess my point is I definately see a shift, not sure of the reason but in my experience Ive lost 12 hours a week (all overtime) from two years ago due to this.

Why do you even give this ground driver the time of day??? Your own words are that you have lost 12 hours per week and your getting fewer and fewer packages and he is getting more and more, this guy is stealing work and money from you!

I'm and RTD and I won't have anything to do with a Ground driver. A few years ago I was picking up a 53' trailer at a customers location and a Ground driver wanted me to help him hook up a set of doubles at the same location. I told him he had a better chance of seeing whatever god he prayed to before I would help him! These guys have undercut our wages, and our benefits, and the sooner that we as a group understand this and stop looking at these guys as fellow FedEx employees, and start looking at them as the dirtbags that they are, and start to give them the cold shoulder the better off we as Express drivers will be.

 

[bbsam]

We, the dirtbags salute you! Two fingers high and hip thrust to boot! Oh. And thanks for your lunch. It is DELICIOUS!

 

[CJinx]

Isn't that the way of the world, though? Someone else can do the same job cheaper and/or better, and you go the way of the dinosaur?

 

[Ricochet1a]

I did some more calling around to people in FedEx Corporation I know regarding the whole topic of shifting around services and maximizing margins on packages, and found out about a pilot program in Office that is real interesting.

FedEx Office is trotting out a program (called "Cheetah") whose goal is to allow customers who are currently using Express service to move around docs within their local area, to instead get same day delivery if done through FedEx Office.

The customer would have to tender their docs or small packages by late morning, then each Office location would do a "sort" on those pieces and divide them up between those that were in the immediate area of the local Office store, and those that were in areas of adjacent Offices stores. Then the local area pieces would be delivered by early afternoon - the non local (think in terms of a major metro area as being the combined service area) would all be brought to a central location where each local store would "swap out" their volume going to service areas of other Office locations. Then the driver would bring back the volume from the central swap, then another cycle of deliveries would be done accomplishing same day delivery across a large metro areas.

They aren't talking just the confines of a single large city (15-20 mile radius), they are talking about a service area with a radius of 50-100 miles.

This is an enhanced version of inter city bicycle messenger service, it will cover in essence the same area as a local level broadcast television station in terms of footprint.

Do you think this will cannibalize volume from Express? You're damn right it will.

Do you think they are going to use existing "Express" assets to pull this off? Not a chance, Express has too great an overhead to it.

What FedEx Corporation is planning on is that the cannibalized volume from Express can be offered at a lower price than Priority Overnight service (delivery in zone), give customers same day delivery (and if tendered in the service area of the local Office store, delivery by early afternoon of the same day) AND make a greater margin on the transaction than if customers used Express Priority Overnight service. It is all about margin per piece.

For FedEx Corporation (if they can pull it off and the tests prove successful), it is a complete win.

For the employees of Express, it is just another step along the road of their "career" being delberately made obsolete by the very company which currently employs them (speaking about FedEx Corporation, the company which "really" employs FedEx people - you cannot buy stock in "FedEx Express").

Can Express employees do a lateral transfer into a position doing this task? No, you are barred, since you work for a different opco. You'd have to terminate your employment with Express, be accepted as a new hire at Office and start at the very bottom of progression.

Do you think they will pay even remotely the same as Express is getting paid right now? Hell no, the pay scales for these drivers are a few bucks an hour less than the starting wage for a Courier and their progression prospects are even worse than Express currently is.

People, you need to pull your heads out of the sand and look around you and see what is happening. Express is being seen as a "Legacy" corporation within FedEx now, FedEx Corporation is where the decisions are being made. Do you think the execs that are within "Express" had any say in this? No. They know of the programs and they know that maximizing margins and profit for FedEx Corporation is the primary goal, NOT trying to maximize revenue within the opco they happen to be working "under".

As an Express wage employee, you are seen as a liability now, NOT an asset to the company. From FedEx Corporation's standpoint, you are overpaid and underutilized. The "vision" is looking at getting 20-somethings for between $11 and $15/hr, work them for 5 years, offer management positions to the most "talented" and have the rest quit after 5 or so years, or be left in a dead end position.

None of this is accidental or coincidental - it is deliberate planning on the part of FedEx to gradually transform the company into a lower labor cost, higher piece margin corporation, while gradually shifting volume away from the "Legacy" company of Express, towards other opcos where greater margins can be realized.