Major ground failure in San Francisco.

[Cactus]

In the RPS days, you might actually be able to say it was your business, not Fred's. Ground is clearly run by FDX and not the ISPs and/or contractors. I give the scam about another 2 years before it comes tumbling down.

Fred will certainly try to pull some other nonsense classification ( take your pick-IZZ/ISCREWU/IURSCREWED)out of a hat if ISP crashes which I think it most likely will. Right now we're hearing the ground rumble and the big earthquake will come sooner or later.

 

[MrFedEx]

You say you're a native but you fail to realize California is a liberal state. Why would a liberal state kick out liberal politicians?
Are you saying Richmond is now a nice place to live? Things have chanced. I assume East Oakland is still a S-hole?

There are nice areas of Richmond (think the marina), and even Oakland has seen a boom in desirability, which equals high rents, even in places that used to be s-holes. I get down there a few times a year (Bay Area), and it always amazes me what people are willing to pay to live there. To me, it isn't worth it, because what they pay in rent is a house payment in most of the rest of the country, and a nice house at that.

gixxersquid has a valid point that FedEx needs to renegotiate their agreement to take into the account the unique aspects of the Bay Area.

 

[bacha29]

Any changes will have to begin with a new board of directors. When Fred S began to approach the retirement age for contractors the age was simply raised. It is a well known fact that hedge funds who have looked at the company want nothing to with it due to the Ground/Express disconnect. With Ground the only operating unit that produces investor acceptable returns X will continue to do everything in it's power to hold the unit together and the only thing that will bring about change will be contractor capitulation on a wholesale and unmanageable scale. What will cause that to happen? Continued downward pressure on settlements resulting in the inability to procure the type top character people the contractor must have in oder to withstand the growing demand for still greater value X places on him.

 

[bbsam]

It is a well known fact that hedge funds who have looked at the company want nothing to with it due to the Ground/Express disconnect

Have anything to back this up or did you read it here?

 

[Cactus]

Have anything to back this up or did you read it here?

Well, why is that so hard to believe?

 

[MrFedEx]

Have anything to back this up or did you read it here?

I doubt he does, but it really points out just how dependent FDX is on Ground if it is true. Without Ground, you've got Express just getting by at a low profit margin. Please note that Fred S has been on a huge spending spree at Express, basically buying a largely new vehicle fleet over the past few years and is currently revamping the aircraft fleet as well. FedEx recently retired 7 additional aircraft early, including at least 1 MD10 and 1 MD11. The remaining 5 were Airbus A340s and 300s. He owes Boeing some big money. Oh, and turnover is rampant at Express, and quite expensive. Efficiency is way down, and operations are usually in the toilet. It's a rare day when everything is on time and a station runs smoothly. Nobody really cares anymore, and most people who know what's going on (as in competent employees), are just waiting until they can either retire or find another job.

You're paying for it over at Ground, which suits me just fine given the way Fred gutted Express and killed our pension so he could build the Ground infrastructure. Now, it's your turn, and we'll see how the Ground/FDX relationship proceeds over the next few years. Would Fred S sit back and watch Ground operators like gixxersquid flail and fail? Yes, he would. To someone like Smith, gixxer shouldn't have any trouble finding drivers at either the flat rate or $650 per week...in San Francisco. To Fred, gixxer is just as bad businessman who doesn't know how to manage his operations and costs. Gixxersquid sounds plenty sharp to me, and I doubt you'd do any better under the same circumstances.

Fred S. Always there to bone you hard and then sandpaper your ass afterwards for good measure.

 

[bbsam]

Well, why is that so hard to believe?

Is that a no?

 

[bbsam]

. To someone like Smith, gixxer shouldn't have any trouble finding drivers at either the flat rate or $650 per week...in San Francisco. To Fred, gixxer is just as bad businessman who doesn't know how to manage his operations and costs. Gixxersquid sounds plenty sharp to me, and I doubt you'd do any better under the same circumstances.

I happen to agree. Gixxer and I have discussed ISP on several occasions. He is getting out and I don't blame him. I, on the other hand, will continue to give Fred what he pays for. If that means 200 service failures because a driver calls in and I don't have enough coverage, then that's what it is. You see, X has people like gixxer thinking he can't fail. I know I can. Gixxer thinks he has to hit 99.5%. I know not a word.will be said u til my service dips below 85%. Not something X is likely to announce, but if @CJinx wants to chime in honestly, she can confirm the wide latitude X has to give contractors and ISPs.

 

[It will be fine]

I happen to agree. Gixxer and I have discussed ISP on several occasions. He is getting out and I don't blame him. I, on the other hand, will continue to give Fred what he pays for. If that means 200 service failures because a driver calls in and I don't have enough coverage, then that's what it is. You see, X has people like gixxer thinking he can't fail. I know I can. Gixxer thinks he has to hit 99.5%. I know not a word.will be said u til my service dips below 85%. Not something X is likely to announce, but if @CJinx wants to chime in honestly, she can confirm the wide latitude X has to give contractors and ISPs.

I don't know where you get the 85% service number. My agreement is 98.5% of local or regional service number. That brings it down to about 97% on any given day. When I go below that we have documented business discussions about it. It doesn't really matter, they aren't going to pull my agreement anytime soon. Stuff happens, sometimes a guy will flat out fail on you. As long as you appear to be addressing it that's all FedEx cares about.
The problem is the engineers don't factor in the cost of loans when negotiating compensation. Contractors without debt can pay a lot more than guys that had to buy in and still clear better profits. It really hurts the long term value of the contracts.

 

[bbsam]

85% comes from legal. Again,.nothing they are likely to advertise. There is what is written and what can be enforced.

 

[Bounty]

85% comes from legal. Again,.nothing they are likely to advertise. There is what is written and what can be enforced.

How do you know this?

 

[bbsam]

How do you know this?

I've been around, pushing the envelope, for 21 years.

 

[FedGT]

I've been around, pushing the envelope, for 21 years.

I don't know how you did this for 21 years. I like what I do and have great relationships with the terminal but even with that and 10-20% organic growth year over year it will probably be a 7-10 year plan for me. Only thing that will change that is if I can get a few more PSAs at that time and run 3-5 on the houses money.......well maybe I just answered my initial question to you.

 

[CJinx]

Not something X is likely to announce, but if @CJinx wants to chime in honestly, she can confirm the wide latitude X has to give contractors and ISPs.

It is peak season. Unless you murder someone out on the dock, your chances of getting an OTC are nil... just a BD at which time they will request that you keep the body count to a minimum in the station.

 

[Cactus]

Is that a no?

Why can't you just answer my question instead of putting words in my mouth?

I've been around, pushing the envelope, for 21 years.

Ground hasn't been in operation that long.

 

[bbsam]

Why can't you just answer my question instead of putting words in my mouth?

Ground hasn't been in operation that long.

RPS was.

 

[bbsam]

It is peak season. Unless you murder someone out on the dock, your chances of getting an OTC are nil... just a BD at which time they will request that you keep the body count to a minimum in the station.

Even outside of peak.

 

[CJinx]

Even outside of peak.

In my experience, the latitude granted to an entity ends at one question: Is coverage available tomorrow if the CSP walks? If the answer to that question is no, no one is willing to pursue a breach of the agreement beyond a BD as no one wants to torpedo their station's and possibly their district's service.

Be irreplaceable and contractor relations will have your back if the senior manager does not like you.

 

[bbsam]

In my experience, the latitude granted to an entity ends at one question: Is coverage available tomorrow if the CSP walks? If the answer to that question is no, no one is willing to pursue a breach of the agreement beyond a BD as no one wants to torpedo their station's and possibly their district's service.

Be irreplaceable and contractor relations will have your back if the senior manager does not like you.

I think you'd be surprised at legal's position when it comes to service numbers.

 

[CJinx]

I think you'd be surprised at legal's position when it comes to service numbers.

No, I don't think I would. Legal's sole purpose in life is to protect the company from litigation and all other factors are secondary. They are pretty much their own department and accountable to no one but the chairman. Yes, really; the head of legal reports directly to Fred S. She's on par with the presidents of the opcos.