NOPE. Just what I'm obligated to do.
RENEGOTIATION ISP INS-OUTS
- Thread starter Exec32
- Start date
Cactus
Just telling it like it is
And by not sewing his Ground patches on his shirts was one of the biggest events since the Revolutionary War.
Nope. Contractually I'll have to do that.
RAvirginia
Member
So I'm going to come to the conclusion, after all this banter on previous posts, that when my terminal goes ISP in 2019 that there will be no differences as the contract I was just handed to sign this week. Same crap, but maybe more than a nickel a stop raise.
It will be fine
Well-Known Member
Raise. Lol. Try reduction in compensation.
Look at it this way.
Think of all the things X would like to do to IC's. ISP is their chance to finally turn the screws and bend you over.
It is indeed unfortunate but the single route contractors you know the ones in you guys estimation didn't know how to manage couldn't get up to scale, the ones you couldn't wait to get rid of were in the end the best friend you ISP's had. In preparation for the onset of heavy downward settlement pressure I've spent the past few days trying to find an alternative worker's compensation insurer for the kid who bought my route.
The company I ended up with is about 40% cheaper.
That's encouraging news. Unfortunately the number of insurers willing to write a WC policy in my state seem to become fewer in number with each passing year
Could you send me the company you use, I'm being screwed by the one I have.
Rachel Gill
New Member
This was in our newspaper yesterday, it made front page: The link to the newspaper article is at the bottom.
Silt couple sells business after FedEx Ground changes policies
Keith and Rachel, a Silt couple jumping on what looked like a bright business opportunity, didn’t foresee that in only a year they would be unemployed, nearly $100,000 in debt and living out of a popup camper.
Both were looking for a career change in the summer of 2015, and an opportunity to buy a FedEx Ground route covering Silt and New Castle seemed nearly perfect. The job would allow them more flexibility, and they estimated they could work for the next 10 years and retire.
Silt couple sells business after FedEx Ground changes policies | PostIndependent.com
Silt couple sells business after FedEx Ground changes policies
Keith and Rachel, a Silt couple jumping on what looked like a bright business opportunity, didn’t foresee that in only a year they would be unemployed, nearly $100,000 in debt and living out of a popup camper.
Both were looking for a career change in the summer of 2015, and an opportunity to buy a FedEx Ground route covering Silt and New Castle seemed nearly perfect. The job would allow them more flexibility, and they estimated they could work for the next 10 years and retire.
Silt couple sells business after FedEx Ground changes policies | PostIndependent.com
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Sorry folks, you're one of hundreds if not thousands of single work area contractors forced out by the ISP conversion. I started back in 1992 with the original Roadway Package System that X bought out from Roadway and renamed Fedex Ground. When you saw that the so called operating agreement was for one year only a red flag should have gone up . One of the many reasons for eliminating the single work area contractor was to attract the better capitalized absentee investor class who would be more inclined to put more capital at risk and whose only interest were the bottom line returns. Having watched the conversion process since it's onset in 2009 and anticipating it's arrival in my home state I sold in May 2015 ,three months before the official announcement . Keep in mind that there are several class actions ongoing in various stages of litigation. When settled the opportunity to file future class actions will be greatly restricted given the terms agreed to in those cases that have been or are in the process of being settled. My very first terminal manager ( RPS). took me aside one day and put the entire matter in perspective when he said, " look I admit it. It's a rotten deal. One of the worst I've ever seen in all my years in this business but you signed it. Now I'm going to tell you how to survive. Keep borrowed money to a minimum and limit your exposure to risk and to variable costs to only that which you cannot avoid" Following that advice is how I and the other 2 day one contractors survived for the 23 years we were together.
I've been saying for years that anyone who pays for a route is getting only a piece of paper. The contract itself gives fedex the right to cancel it at any time, without cause, leaving you with nothing. And short of expensive litigation, the most you can sue for is the amount equal to the after expense income you would have earned until contract renewal date. And there is no requiremnt for fedex to renew the contract, no matter how good you have performed. You could get a manager with a friend who needs a job, and you could be gone at the end of your current term, with no recourse at all.
These people heard the ISP transition was coming, and committed their entire savings anyway.
"a fool and their money..........."
Indeed. To begin with this couple was at least 15 years too old to get into this labor intensive weather dependent line of work. Secondly , they placed a 10 year life plan full of lofty retirement expectations of the back of a one year one sided nonguaranteed service contract. The trappings were right there in front of them and they ignored them Somebody has set up a go fund me page. It might raise a few dollars but won't even begin to cover their debts or restore their credit. We were fortunate. We got into at the beginning and were able to recognize the company's true objectives. Therefore we could slide along with it while knowing where the mine fields were laid and steered clear of them. When told about the ongoing transition to ISP it was incumbent upon them to do the research before signing the dotted line.The guy who sold it to them has got to be grinning like a possum right now.
12yearsaslave
Well-Known Member
The way negotiations work is: they define what your CSA is worth (that bottom line number at 0% growth). then they push the "randomize" button. (keep looking at that bottom line). It does not matter how many vehicles/hours/people it takes to deliver/manage your area. This has nothing to do with reality. Let them send the first offer. Keep sending offers that are higher. At some point you will run into the wall, that is your CSA worth, they will rarely move past that.
1. Very hard to get them move on package/stop charge (once you are at 70%+ variable), they are eager to put more into CSI and safety. If all else fails try to get more into surge or move the DST up while upping stop charges.
5. Definitely. Maybe there is a magic station out there where contractors would not jump on your area, I have not seen one yet. Unless the area is well known as being troublesome.
6. Yes. One lost exclusive rights and was outbid. The other negotiated for another 4 weeks and got significantly more money. (the latter was the well known
ty area that nobody wanted to touch)
