The Big News

[vantexan]

If you budget on the 42-44 hours you get now, you are a fool.

I sock away everything I can weekly, and will walk away as soon as I can. But if I'm getting 35-36 hrs a week it'll get alot tougher. You, on the other hand, will be happy, knowing that you are sacrificing for the good of the company. It's enough for you that someone else is doing really, really well.

And you left something out of your statement.

 

[Cactus]

Let me see if I understand this part......

So if a station would sign the union cards and have a majority vote then Fred tries to lock the couriers out, then who would do all the deliveries and pickups? Certainly not the managers or the Senior (most of them don't like to get their hands dirty anyway.) I see a whole days or weeks worth of freight sitting and rotting away.

I'm sure all the stockholders would catch wind of this rather quickly and probably be less than pleased. With all the ass kissing Memphis does to please them and Wall Street this doesn't seem like a logical move on their part.

Or am I missing something?

What I'm figuring is if I only average 36 hrs instead of getting 42-44 a week then I'm losing as much as $180 a week. Multiply that kind of money by 10's of thousands of FTer's and you can see huge savings i.e. huge profits and very happy stockholders. That kind of loss of pay means walking to work, no movies, no snacks, no vacations, and possibly finding a part-time job to make ends meet. Hey LTFedExer, you'll be able to save plenty in your 401k then!

Believe me I understand where you're coming from Van, but this really doesn't answer my question.

 

[LTFedExer]

I sock away everything I can weekly, and will walk away as soon as I can. But if I'm getting 35-36 hrs a week it'll get alot tougher. You, on the other hand, will be happy, knowing that you are sacrificing for the good of the company. It's enough for you that someone else is doing really, really well.

And you left something out of your statement.

1. I sock away anything I can also. But, I do it on a 35/wk budget. Anything over that is a bonus and goes into savings or wherever I choose it to go.
2. Of course working 35-36 hrs it'll be tougher than on 42-44 hrs. What's your point?
3. All hourly employees in every company sacrifice something for someone. Again, what's your point?
4. Who is doing really, really well? There's ALWAYS someone doing better than you, no matter who you are or how much you make.
5. What did I leave out?

 

[vantexan]

1. I sock away anything I can also. But, I do it on a 35/wk budget. Anything over that is a bonus and goes into savings or wherever I choose it to go.2. Of course working 35-36 hrs it'll be tougher than on 42-44 hrs. What's your point?3. All hourly employees in every company sacrifice something for someone. Again, what's your point?4. Who is doing really, really well? There's ALWAYS someone doing better than you, no matter who you are or how much you make.5. What did I leave out?

Yeah, you are right. People shouldn't expect that as they put in the time they get raises that keep them ahead of inflation. If they go above and beyond the only thing they deserve is an attaboy. Who needs a pension anyways? And if after years of very small raises, even no raise, the company figures out a way to take even more away then good for them. We deserve whatever the company decides is good enough, and not a cent more. If a billionaire adds a million here and a million there due to our diligent efforts to assist him, then someday we can sit in front of a tv for 15 hrs a day knowing with pride that we did our part. God bless FedEx, who's leading the way to a better world for us all.

 

[LTFedExer]

Yeah, you are right. People shouldn't expect that as they put in the time they get raises that keep them ahead of inflation. If they go above and beyond the only thing they deserve is an attaboy. Who needs a pension anyways? And if after years of very small raises, even no raise, the company figures out a way to take even more away then good for them. We deserve whatever the company decides is good enough, and not a cent more. If a billionaire adds a million here and a million there due to our diligent efforts to assist him, then someday we can sit in front of a tv for 15 hrs a day knowing with pride that we did our part. God bless FedEx, who's leading the way to a better world for us all.

If you're not happy where you are, go work for another company. It's not a hard concept to understand.

 

[vantexan]

If you're not happy where you are, go work for another company. It's not a hard concept to understand.

You're absolutely right. As everything is perfect now, anyone who isn't happy with the status quo shouldn't be here. FedEx, love it or leave it.

 

[Cactus]

If you're not happy where you are, go work for another company. It's not a hard concept to understand.

You make it sound sooooo easy.

Not in this economy.

 

[LTFedExer]

You're absolutely right. As everything is perfect now, anyone who isn't happy with the status quo shouldn't be here. FedEx, love it or leave it.

See? You do understand.

You make it sound sooooo easy.

Not in this economy.

You say that and still blame FedEx for cutting back?

 

[vantexan]

See? You do understand.You say that and still blame FedEx for cutting back?

They had a 1.4 billion dollar profit in Fiscal Year 2011. In a bad economy with high fuel prices. Yes, I do understand.

 

[Cactus]

You say that and still blame FedEx for cutting back?

After 1.4 billion in profit for last year, there's no excuse to cut back.

Go back to shining Fred's shoes.

 

[59 Dano]

$1.4 billion in profit on revenues from $39.3 billion in revenues. Their net profit margin is 3.69%; less than 4 cents of each dollar of revenue. That's not good in and of itself, and it's just plain bad in this kind of business (capital-intense; heavy reliance on a particularly volatile commodity). Cut another point or so off of that margin if you want to factor in the rate of inflation.

Cactus, you pointed out that our economy isn't doing so hot right now. Neither is FedEx. When FDX has to spend $37.8 billion just to earn a one billion dollar profit, things aren't all that great. Would you be content with a 401(k) portfolio that only generated a rate of return of 4%? Hell no. Would you bet $37 on something in hopes of getting $39 back, for a win of $2? Probably not. FedEx won't put up with that, either.

Let's focus on Express. These are quick n' dirty, back of the envelope calculations, but Express averaged roughly $.78 profit per domestic package in FY'11, compared to $1.40 for FY'07. Let's talk about volume while we're at it. We averaged under 2.7 million domestic pkgs/day for each of the last 3 fiscal years. The last time we averaged less than 2.7 million was sometime before FY'98.

IOW, our domestic volume is at pre-FY'98 levels and our profit per domestic pkg has dropped 44% in four years and you see no reason to cut back? I'm surprised, though thankful, that they haven't cut back MORE.

 

[LTFedExer]

After 1.4 billion in profit for last year, there's no excuse to cut back.

Go back to shining Fred's shoes.

And you spend every penny you make every week? I'm sure some of your extra money you have after the bills get paid get set aside. As Dano said above, $1.4B is not a lot of money considering the total revenue.

 

[TUT]

At the same point companies like Fedex are OK with 1.4 billion profit otherwise they don't have to spend huge sums in upgrades and growth, just bank it. But Express volumes without question are a huge concern, total sign of the times.

 

[MrFedEx]

$1.4 billion in profit on revenues from $39.3 billion in revenues. Their net profit margin is 3.69%; less than 4 cents of each dollar of revenue. That's not good in and of itself, and it's just plain bad in this kind of business (capital-intense; heavy reliance on a particularly volatile commodity). Cut another point or so off of that margin if you want to factor in the rate of inflation.

Cactus, you pointed out that our economy isn't doing so hot right now. Neither is FedEx. When FDX has to spend $37.8 billion just to earn a one billion dollar profit, things aren't all that great. Would you be content with a 401(k) portfolio that only generated a rate of return of 4%? Hell no. Would you bet $37 on something in hopes of getting $39 back, for a win of $2? Probably not. FedEx won't put up with that, either.

Let's focus on Express. These are quick n' dirty, back of the envelope calculations, but Express averaged roughly $.78 profit per domestic package in FY'11, compared to $1.40 for FY'07. Let's talk about volume while we're at it. We averaged under 2.7 million domestic pkgs/day for each of the last 3 fiscal years. The last time we averaged less than 2.7 million was sometime before FY'98.

IOW, our domestic volume is at pre-FY'98 levels and our profit per domestic pkg has dropped 44% in four years and you see no reason to cut back? I'm surprised, though thankful, that they haven't cut back MORE.

YOU LIE!! Let's consider some other reasons profits have dropped, OK? How about bloated salaries and perks for the upper crust of FedEx? Or how about our pilot compensation and benefit plans, which are far superior to anything hourly employees receive, and the most generous in the industry? Massive employee turnover is also very expensive. So are new aircraft purchases, which we simply must have after spending huge money on updating fuel-hog DC10's into fuel-hog MD10's that aren't nearly as efficient as newer aircraft. Another stupid move. Mis-management is very costly. So are all of the millions Fred has pumped into lobbying, a private jet fleet for top execs and friendly politicians. It's expensive keeping the RLA that keeps most employees in the poorhouse. Oh, and crap service has lost FedEx some major accounts that used to provide lots of volume.

Here's a big wake-up call for you. Transportation companies (particularly "airlines") almost always have operating ratios in the mid to high 90's, and large trucking companies usually have ratios as high as 98, and they do just fine. Both FedEx and UPS, which are basically the same thing, have high operating ratios because that's the norm for the industry. UPS, which is much better managed despite having a unionized workforce, does very well because they actually know what they are doing at the corporate level. When the best you've got is MT3, you're on the losing team.

After you shine Fred's shoes, you can change his diaper too. His Depends aren't getting the job done any longer. God, you are such a suck-up.

 

[bbsam]

Slowly being sucked back in, eh MFE?

 

[MrFedEx]

Slowly being sucked back in, eh MFE?

Not really. I check-in every once in awhile, but when I see a known corporate suck-up suddenly appear from the ether, they need to be called-out for the fakes that they are.

 

[vantexan]

Which comes back to my point. 1.4 billion in a bad year with high fuel costs. And they increased the stock dividend. But it's a forgone conclusion that they are going to do whatever it takes, legally as some point out, to increase those profits. And as has been the case since the early 90's, taking from the employees to pad the profit looks inevitable. Just a matter of when. I'm sure they're ready to replace every last one of us who feel we've been had with fresh young faces who see it as a stepping stone to a real job somewhere else. I'd just like to know when the real changes are going to happen so I can start my own planning. Come on FedEx, cowboy up and tell us in a meeting what is going to happen. I think we deserve to know whether these are unfounded rumors or the real deal. There are people who are trying to pay for their kid's college. trying to pay off a car, helping elderly parents, and so on. They need to know of impending changes and when to expect them. If you're the people company you claim to be, do the right thing and give us a head's up.

 

[vantexan]

And to think, the money they saved on our pension plan went to build up Ground so that they could do this to us. The circle of life. Hey Dano, the payroll savings ought to bump that profit margin up quite a bit.

 

[Cactus]

$1.4 billion in profit on revenues from $39.3 billion in revenues. Their net profit margin is 3.69%; less than 4 cents of each dollar of revenue. That's not good in and of itself, and it's just plain bad in this kind of business (capital-intense; heavy reliance on a particularly volatile commodity). Cut another point or so off of that margin if you want to factor in the rate of inflation.

Cactus, you pointed out that our economy isn't doing so hot right now. Neither is FedEx. When FDX has to spend $37.8 billion just to earn a one billion dollar profit, things aren't all that great. Would you be content with a 401(k) portfolio that only generated a rate of return of 4%? Hell no. Would you bet $37 on something in hopes of getting $39 back, for a win of $2? Probably not. FedEx won't put up with that, either.

Let's focus on Express. These are quick n' dirty, back of the envelope calculations, but Express averaged roughly $.78 profit per domestic package in FY'11, compared to $1.40 for FY'07. Let's talk about volume while we're at it. We averaged under 2.7 million domestic pkgs/day for each of the last 3 fiscal years. The last time we averaged less than 2.7 million was sometime before FY'98.

IOW, our domestic volume is at pre-FY'98 levels and our profit per domestic pkg has dropped 44% in four years and you see no reason to cut back? I'm surprised, though thankful, that they haven't cut back MORE.

Maury, Is that you?

Business lesson 101.....It takes money to make money.

I'm sick of all this corporate suck up like poor ol' FredEx is scraping the bottom of the barrell to get by and all these darned expenses. Wah, wah, wah.

All the money Fred spends to keep us under the phony umbrella of the RLA while treating the Memphis uppercrust, influential politicians and lobbyists to the finer things in life. Like MFE pointed amoung other things out that's where a good chunk of it is going.

Wake up and smell the coffee instead of drinking the Kool-aid.

 

[vantexan]

Maury, Is that you? Business lesson 101.....It takes money to make money.I'm sick of all this corporate suck up like poor ol' FredEx is scraping the bottom of the barrell to get by and all these darned expenses. Wah, wah, wah.All the money Fred spends to keep us under the phony umbrella of the RLA while treating the Memphis uppercrust, influential politicians and lobbyists to the finer things in life. Like MFE pointed amoung other things out that's where a good chunk of it is going.Wake up and smell the coffee instead of drinking the Kool-aid.

Yeah, it's what's left over from revenue taken in, not putting up $39 billion of your own money to only get less than a 4% return. And these days not so easy getting a 4% return anyways. And Dano they who are doing so badly increased the stock dividend. The goal is to keep the stock price high for those who own alot of stock. That's the goal behind making Express strictly an overnight service. Now let's see if they actually do it or if this is just another rumor.