Ok...so were going under...
- Thread starter fedupped
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MAKAVELI
Well-Known Member
If you see Express' bottom line fall to - 3%, than you will see that stock drop like a rock. And then you can expect them to take more profit out of ground and it's contractor scam. Get ready for that six figures to drop to five.
With a fiduciary responsibility to stockholders they aren't going to take high risks. The restructuring they're doing now certainly isn't moving at breakneck speed. If it were legally possible Express would be all contractors by now.
MrFedEx
Engorged Member
Yes. If they could go to an all-contractor model, they certainly would. I foresee losses for the Express opco as they continue to perpetuate the DRAsaster by throwing new hires and money at it with increasing velocity. When you get DRA, you'll see for yourself what a dysfunctional mess it is, and how it adversely affects productivity and profits. They are rapidly increasing headcount and hours when the opposite is supposed to be happening.
Besides DRA, they are also buying a lot of new aircraft and vehicles. As the new planes come on-line there will be savings, but those are long-term in nature. Wall Street thinks short-term, and when Express starts piling-up losses investors are going to start to see through Fred's false promises regarding the Express opco. Even more emphasis will be placed on Ground.
As others have said, Express is still the flagship of the opcos, even if the bow is under water and the stern is slowly tilting upwards toward the sky. If and when it founders, people are going to pay attention and look at FedEx leadership, which will make all of the usual excuses and then redouble their efforts to build Ground.
I'm enjoying the show immensely.
MAKAVELI
Well-Known Member
Why else do you think Express is not part of the contractor scam?
As I mentioned earlier, company employees are required to handle freight from pickup to arrival at a destination ramp. If that wasn't required then most likely Express would be handled by contractors by now.
But then on the other hand DRA creates all these routes that they are hiring part-timers to fill. Seems to be in keeping with the goal of making Express primarily a part-time workforce. Keeps the fulltime OT down too.
overflowed
Well-Known Member
I have a friend in Oregon that's a medium station. Said they didn't have any pters till recently. Now they have about 6 of them. I asked what changed he said nothing, his manager told them that Memphis basically forced the manager to hire some. Manager said I would only need a few part timers on wednesday and that's it. Said why hire them if I basically have nothing to use them for. Pay benies, uniforms, training, and he really didn't need em. So there are managers who are trying to run this place like a business and the top brass just forces their decisions on them as well. I have a suspicion ops managers no longer care either. What I'm seeing anyway. Point being they look at OT hours and think you need some pters . Even if at that particular station it doesn't bring the OT hours down anyway.
DontThrowPackages
Well-Known Member
At our station it did. We had guys at 55 weekly. The PTers have cut away at the OT hrs but at the same time, 70pct of them come back late. Pass them on the road and they can be seen on the phone, at a stop for 20 mins trying to get girls phone numbers(we all been there lol), and just wasting time in general. I think if someone did the math, our OT vs. their insurance, vacation time, uniforms, accidents etc I doubt there's any real savings.
overflowed
Well-Known Member
Exactly my point. Also the quality of the new part timers I've seen are laughable.
MrFedEx
Engorged Member
Yes...great points. Every new hire requires training, a vehicle, uniforms etc., and most of the post-DRA hires are worthless. These are the people that do all of the things you mention, and much more. I'm stay in touch with a couple of dispatchers I came up with, and they all say the same thing about DRA and the new hires....it's a complete cluster. Overall, they are losing money when they send someone out on the road that is far below standard on their ability to deliver or pickup packages. In some cases, an experienced good courier can literally do twice what one of the new people can. Like you said, "where are the savings". Add-in the fact that a lot of couriers are slowing it down and working at "Payday Pace", and the losses compound. MT3 was talking in tongues, as usual, but that was the problem he was getting at. People ARE slowing-down, and it is costing them big money, and they have no solution except to do what they always have...threaten, discipline, and then threaten some more. It's all about saving money no matter what the crap consequences are for the FedEx employee, and people are finally figuring this out.
MrFedEx
Engorged Member
How would you know? Pickups over at Express are a bit more complicated than at Ground. And, as usual, you are wrong about "instant proficiency". Remember, at Express, drivers have to be back by a specific time in order to make the aircraft or CTV. This isn't really an issue at Ground. There is so much you don't know about how Express operates. You might be able to teach a chimp how to be a Ground driver in 5 minutes, but that doesn't mean the same thing can be accomplished at the other opcos.
I think it easier to teach a pickup route simply because there is little variation in the route. Why so sensitive? As complicated as Express pickups may be, I doubt that they can't be mastered in at the most a week. Any quetions arising smoothed out with a phone call.
MrFedEx
Engorged Member
Uh, no. Express is having tremendous problems with new PT couriers on the pickup cycle. Express oickups require a modicum of time-management skills, which many of these people apparently cannot master. A simple fact. There can be a lot of variation in an Express pickup route, especially if it has heavy on-calls, which means same-day pickups as late as the cutoff time, which might be 1600. add-in heavy dropbox volumes, big shippers, and juggling all of it, and a lot of people can't do it. Not rocket science, but not simple either.
The biggest problem with part timers I've seen is retaining them. Guess what, FedEx lied to them to get them aboard. Who knew?!! They realize real quick there's alot of B.S. with no future but they thought they were getting on with a top flight company that they'd do well at. There's nothing complicated about pickup rts, it's just highly unmotivated people resent being screwed upfront and don't stay long.
thedownhillEXPRESS
Well-Known Member
I have to also jump in here and disagree with you BB.
I believe an average of about 3 months in a given area is needed to become proficient.
Sure, we have the regulars, but the variation of on call pickups getting thrown into the mix, along with the learning curve of which time the shipper is truly ready at.
Just because it gives a 1600-1800 window might mean that particular customer is really ready at 1715, never mind daily variations.
Throw in the occasional Haz, international or bulk stop, and it gets complicated.
No , it's not rocket science, but a week just doesn't cut it.
