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<blockquote data-quote="vantexan" data-source="post: 5877049" data-attributes="member: 24302"><p>I'm going off numbers from before I retired but at the time FedEx brought in about $60 billion if I remember right. 52% of that went to payroll. All said and done they netted about $2 billion. This was all of FedEx, not just Express. If they were spending over $30 billion on payroll, another $15 or so billion on fuel, the rest on equipment, rent, etc, etc, left with $2 billion, then how were they going to bring everyone up to UPS scale? The fact remains that the UPS primarily ground model is much more profitable than overnight air. FedEx realized that and most of that $2 billion in profit was coming from Ground. Before Ground was built FedEx annual profits were often less than a billion. What is sad and pathetic about FedEx is their willingness to use the contractor model and screw just about everyone except the customers who ship a lot of bulk and are getting their freight delivered for less. If they truly are trying to make Ground the center of FedEx and increase profits that much more then there's simply no way they are going to pay the people still at Express UPS pay and benefits when their focus will be on keeping Ground going. The money isn't there with Express at its current size to increase everyone's pay that much. That's without even thinking about great healthcare and retirement. And if Ground becomes much larger than Express and profits grow considerably they aren't going to put all that profit into what's left of Express. They're going to shell out bigger dividends to increase the stock price. Reward investors and make themselves richer in the bargain. People need to realize that if they work for a major corporation whose model revolves around a large workforce and labor intensive work then they are the most vulnerable to company cost saving measures. It's why UPS has a union and FedEx went to such lengths wining and dining Congressmen to keep a union out.</p></blockquote><p></p>
[QUOTE="vantexan, post: 5877049, member: 24302"] I'm going off numbers from before I retired but at the time FedEx brought in about $60 billion if I remember right. 52% of that went to payroll. All said and done they netted about $2 billion. This was all of FedEx, not just Express. If they were spending over $30 billion on payroll, another $15 or so billion on fuel, the rest on equipment, rent, etc, etc, left with $2 billion, then how were they going to bring everyone up to UPS scale? The fact remains that the UPS primarily ground model is much more profitable than overnight air. FedEx realized that and most of that $2 billion in profit was coming from Ground. Before Ground was built FedEx annual profits were often less than a billion. What is sad and pathetic about FedEx is their willingness to use the contractor model and screw just about everyone except the customers who ship a lot of bulk and are getting their freight delivered for less. If they truly are trying to make Ground the center of FedEx and increase profits that much more then there's simply no way they are going to pay the people still at Express UPS pay and benefits when their focus will be on keeping Ground going. The money isn't there with Express at its current size to increase everyone's pay that much. That's without even thinking about great healthcare and retirement. And if Ground becomes much larger than Express and profits grow considerably they aren't going to put all that profit into what's left of Express. They're going to shell out bigger dividends to increase the stock price. Reward investors and make themselves richer in the bargain. People need to realize that if they work for a major corporation whose model revolves around a large workforce and labor intensive work then they are the most vulnerable to company cost saving measures. It's why UPS has a union and FedEx went to such lengths wining and dining Congressmen to keep a union out. [/QUOTE]
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