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I Don't Get It
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<blockquote data-quote="vantexan" data-source="post: 1102607" data-attributes="member: 24302"><p>Nope. Express produces much more revenue than Ground per pkg but after all their expenses their profit is lower than Ground's per pkg. UPS has the advantage of having about $8 billion more in revenue, if I remember right, as they handle more freight but their costs per pkg outside of payroll are much lower than Express. This allows them to pay much more and still turn a profit. As FedEx puts more emphasis on Ground that opco will supplant Express as the one with the most revenue, making FedEx much more profitable. Yes, all the profit goes into the holding company, Federal Express Corporation, and the corporate officers choose how to best spend it. As Ground will be producing more of the profit you should expect that more of it will be plowed back into Ground instead of Express. The only way you'll see Express getting more of that increased profit is if you can get a union in. And my point stands, if Express gets paid much more due to a union that extra pay will come mostly from Ground. And if those Ground drivers see Express couriers living much better than they are off the revenue Ground produces, you can bet there will be huge turnover at Ground, threatening all that great pay at Express.</p></blockquote><p></p>
[QUOTE="vantexan, post: 1102607, member: 24302"] Nope. Express produces much more revenue than Ground per pkg but after all their expenses their profit is lower than Ground's per pkg. UPS has the advantage of having about $8 billion more in revenue, if I remember right, as they handle more freight but their costs per pkg outside of payroll are much lower than Express. This allows them to pay much more and still turn a profit. As FedEx puts more emphasis on Ground that opco will supplant Express as the one with the most revenue, making FedEx much more profitable. Yes, all the profit goes into the holding company, Federal Express Corporation, and the corporate officers choose how to best spend it. As Ground will be producing more of the profit you should expect that more of it will be plowed back into Ground instead of Express. The only way you'll see Express getting more of that increased profit is if you can get a union in. And my point stands, if Express gets paid much more due to a union that extra pay will come mostly from Ground. And if those Ground drivers see Express couriers living much better than they are off the revenue Ground produces, you can bet there will be huge turnover at Ground, threatening all that great pay at Express. [/QUOTE]
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