Major ground failure in San Francisco.

[bbsam]

Negotiate? HaHaHaHa? You must think this is a real business.

Yes. A real business. And if what you say is true, don't you think X will have to approach ISP/contractor (and thus driver) compensation more fairly? Companies like X don't address concerns until theyabsolutely have to. They won't abandon the model because it is so lucrative and merely throwing money at it through peak is too short term.

The company can say it's the contractor's problem but they understand that contractor problems eventually become their problems.

 

[Brown287]

Unless you live in the BayArea you have no idea what the true cost of living is. Besides the costs we also have a very robust economy with an extremely high employment rate. Not to mention cities like San Francisco and San Jose all have their own minimum wages that are far above the national norm. So this all together can spell disaster for companies like FedEx that have designed their model around low wages.

We are currently paying our helpers almost $15hr plus overtime plus a $100 weekly bonus for showing up everyday. From what I know that's more than FedEx Ground drivers wage.

To top that off we have a charter bus bring employees from outlying areas to the BayArea hubs just so we can be fully staffed. So you can start to see the issue here.

So if UPS has to do this and offer this pay to stay staffed I can only imagine that FedEx would need to do the same.

 

[MrFedEx]

Yes. A real business. And if what you say is true, don't you think X will have to approach ISP/contractor (and thus driver) compensation more fairly? Companies like X don't address concerns until theyabsolutely have to. They won't abandon the model because it is so lucrative and merely throwing money at it through peak is too short term.

The company can say it's the contractor's problem but they understand that contractor problems eventually become their problems.

OK, so we've all established that the cost of living is very high in San Francisco. That means that FedEx needs to tailor it's operations accordingly. Unfortunately, they don't seem capable of doing that.

The Express market level scam attempted to address this issue over on our side, but now we're talking about "independent businesses" that are enormously profitable to Mr. Smith, but not so much to the ISPs. FedEx isn't going to bend until they realize that the scam isn't going to work as well in areas where the cost of living precludes procuring enough decent workers to actually do the job.

Someday you're going to be a bona fide employee Sammy. Better sell now before you need to cut a deal with Satan himself.

 

[Cactus]

Someday you're going to be a bona fide employee Sammy. Better sell now before you need to cut a deal with Satan himself.

And he might actually have to work for a living too.

Oh the humanity!

 

[bbsam]

And he might actually have to work for a living too.

Oh the humanity!

Oh, that won't happen.

 

[bbsam]

OK, so we've all established that the cost of living is very high in San Francisco. That means that FedEx needs to tailor it's operations accordingly. Unfortunately, they don't seem capable of doing that.

The Express market level scam attempted to address this issue over on our side, but now we're talking about "independent businesses" that are enormously profitable to Mr. Smith, but not so much to the ISPs. FedEx isn't going to bend until they realize that the scam isn't going to work as well in areas where the cost of living precludes procuring enough decent workers to actually do the job.

Someday you're going to be a bona fide employee Sammy. Better sell now before you need to cut a deal with Satan himself.

Yes, MFE. That's how corporate America does things. They'll push it to the point of collapse and rebuild. But turn us into employees and watch us become money losers like Express? No. I think he's seeing how that plays out enough to know that's not the right path.

 

[MAKAVELI]

But turn us into employees and watch us become money losers like Express?

Or money makers like UPS.

 

[Code 82 Approved]

All I have gained from this thread is to choose not to work in areas like Frisco... where I'm likely to have heavy furniture and no elevators, and high rent.
Hats off to those doing the purple promise there.

 

[MAKAVELI]

All I have gained from this thread is to choose not to work in areas like Frisco... where I'm likely to have heavy furniture and no elevators, and high rent.
Hats off to those doing the purple promise there.

You are better off working at McDonald's in San Francisco.

 

[bbsam]

Or money makers like UPS.

Hmmm. Are you suggesting that UPS ROI for Ground is better than what X makes using a contractor model?

 

[Code 82 Approved]

You are better off working at McDonald's in San Francisco.

From the sounds of it, I'd rather not. That's insanity, McD's food sucks!

 

[gixxer squid]

That was always my point. FedEx doesn't pay enough to properly pay drivers. It's peak and we already have ISP's failing because drivers are quitting left and right. Everyone of them is going to another job.

Its really a catch 22 IMHO. Lets say X did compensate us contractors for geographical areas, I am so sorry to admit but there are slum contractors in my terminal that honestly don't give a smilet about there workers and the high turnover or whether they work a night job to support themselves. Under ISP and every other contract X cannot specify what we pay to drivers, thats part of the gray area on control and up to the contractor to set the hourly wage and they (x) wash their hands. No guarantees that the extra money given by X will actually trickle down to higher pay and/or even benefits by the contractor. It would be nice however if we were paid enough to at least have the choice and additional income to be able to pay and keep our turnover ratio to a minimum.

 

[Code 82 Approved]

BBSAM
If it cost you $1 to provide your services, but only earned $.999 in return, would you keep your business?

 

[bbsam]

BBSAM
If it cost you $1 to provide your services, but only earned $.999 in return, would you keep your business?

No. That's part of the beauty of not having to buy most of the routes I have.

 

[Code 82 Approved]

Far from an economics expert, I would say there would have to be a tipping point where revenue vs expenses would dictate a decision to liquidate at some point in time?

 

[bbsam]

Far from an economics expert, I would say there would have to be a tipping point where revenue vs expenses would dictate a decision to liquidate at some point in time?

Of course. But when X looks at ISP and contractors throughout the company, the don't see wholesale liquidation so they don't see a large problem.

 

[MAKAVELI]

Hmmm. Are you suggesting that UPS ROI for Ground is better than what X makes using a contractor model?

No, I'm suggesting an all employee workforce and the efficiency of combining their ground and air operations is more profitable than FedEx separating its opcos.

 

[gixxer squid]

Your are exactly right! This is harder than many think. I had a buyer come to me with cash and it still took me a year to get out.

We are for sale and with all the failures with new owners because the smart ones got out before, we are highly concerned that we will not be allowed to sell or take an extremely long time.

We have been the top contractor in our entire terminal 2015 with a score of 99.6% Why? We have 1 full time manager and 1 full floater and me being the 3rd back up. Know how much I have paid myself this year? ZERO, not a single cent.
8 trucks running with 2 backups. Both manager and floater out everyday helping with bulk and stops to ease the pain, neither sitting on their asses doing nothing. Often they help other contractors as well. Even with the 2 backups I have probably driven a combined total of 40 days this year. Yes, crap happens, you think you got yourself covered but things just happens.

All you in ISP or PSA people still know the numbers, not much different anywhere. Try adding 1 guy per your 4 trucks, how much expendable income is actually left to pay yourself? EXACTLY. Its a joke and not worth the headache, counting my days till I am free from this burden

 

[bbsam]

No, I'm suggesting an all employee workforce and the efficiency of combining their ground and air operations is more profitable than FedEx separating its opcos.

That's not going to happen. You want X to build a model to emulate UPS? And invite in the union? Crazy talk.

Besides, you Express kids couldn't handle Ground freight.

 

[MAKAVELI]

That's not going to happen. You want X to build a model to emulate UPS? And invite in the union? Crazy talk.

Besides, you Express kids couldn't handle Ground freight.

Of course that's what I want. If UPS. can do it, so can FedEx.