Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Softening Us Up?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Ricochet1a" data-source="post: 980159" data-attributes="member: 22880"><p>FedEx has run the numbers, and having dual coverage of areas (Ground and Express trucks) IS much cheaper. Very soon, they will have THREE drivers potentially delivering to the same address (Ground, Express, Office). They've run the numbers, labor is the major cost, NOT the running of multiple vehicles. Without the RLA for Express and the inappropriate use of the IC model for Ground, FedEx would've been forced into complete integration as UPS has. By paying for one advantageous labor rules and defending the use of the other, FedEx has obtained the lowest cost labor possible while meeting its service goals. </p><p></p><p>Just as the current Express wage employees are looking at the impending change and not able to comprehend what is about to happen, looking at how UPS runs its business and attempting to rationalize how FedEx can efficiently runs its by comparison is faulty thinking. If UPS could somehow get rid of the Teamsters and adopt a model like FedEx currently has and will further modify in the coming years, UPS would do it in a heartbeat. </p><p></p><p>In one of those trucks, FedEx is paying about $12/hr with no benefits to the operator. In the other, FedEx currently pays about $27/hr on average INCLUDING benefits. UPS pays on average about $40/hr to the operators of their trucks - including benefits. In addition, since UPS has increased density of volume (a single truck covers a small area compared to a Express truck), the efficiency of getting the volume out of an UPS truck is higher. </p><p></p><p>With the gradual change to a part-time force with Express and the shifting of delivery to Ground of non-overnight volume, the cost advantages of FedEx will increase even more. The typical Courier pay will drop to about $22/hr (assuming they keep the same pay rates). If Express is able to being in more "Courier-handlers" to drive the routes which will become predominantly Sprinter type vehicles (not requiring DOT certification), then costs can be reduced even further. Express has already held back starting pay for Couriers (they used to bump starting pay up each year with the pay actions). The writing is on the wall.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 980159, member: 22880"] FedEx has run the numbers, and having dual coverage of areas (Ground and Express trucks) IS much cheaper. Very soon, they will have THREE drivers potentially delivering to the same address (Ground, Express, Office). They've run the numbers, labor is the major cost, NOT the running of multiple vehicles. Without the RLA for Express and the inappropriate use of the IC model for Ground, FedEx would've been forced into complete integration as UPS has. By paying for one advantageous labor rules and defending the use of the other, FedEx has obtained the lowest cost labor possible while meeting its service goals. Just as the current Express wage employees are looking at the impending change and not able to comprehend what is about to happen, looking at how UPS runs its business and attempting to rationalize how FedEx can efficiently runs its by comparison is faulty thinking. If UPS could somehow get rid of the Teamsters and adopt a model like FedEx currently has and will further modify in the coming years, UPS would do it in a heartbeat. In one of those trucks, FedEx is paying about $12/hr with no benefits to the operator. In the other, FedEx currently pays about $27/hr on average INCLUDING benefits. UPS pays on average about $40/hr to the operators of their trucks - including benefits. In addition, since UPS has increased density of volume (a single truck covers a small area compared to a Express truck), the efficiency of getting the volume out of an UPS truck is higher. With the gradual change to a part-time force with Express and the shifting of delivery to Ground of non-overnight volume, the cost advantages of FedEx will increase even more. The typical Courier pay will drop to about $22/hr (assuming they keep the same pay rates). If Express is able to being in more "Courier-handlers" to drive the routes which will become predominantly Sprinter type vehicles (not requiring DOT certification), then costs can be reduced even further. Express has already held back starting pay for Couriers (they used to bump starting pay up each year with the pay actions). The writing is on the wall. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Softening Us Up?
Top