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How about some rampant speculation?
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<blockquote data-quote="Ricochet1a" data-source="post: 946606" data-attributes="member: 22880"><p>I did some asking around about two topics which are on this string: Unified dispatch and Ground making pickups for non-overnight "Express" volume.</p><p></p><p>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).</p><p></p><p>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).</p><p></p><p>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). </p><p></p><p>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. </p><p></p><p>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.</p><p></p><p> 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. </p><p></p><p>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). </p><p></p><p>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. </p><p></p><p>For the dispatchers, the issue becomes, "What opco would they work for?". </p><p></p><p>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.</p><p></p><p></p><p>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". </p><p></p><p>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. </p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 946606, member: 22880"] 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. [/QUOTE]
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