The Plan is Still a Go

Discussion in 'FedEx Discussions' started by MrFedEx, Dec 7, 2012.

  1. MrFedEx

    MrFedEx Engorged Member

    When I took my little break from the BC I was still reading posts, and it seems to me that many of you think that the "Master Plan" of shifting Express services over to Ground has somehow been shelved. That simply isn't the case, and if you think that Express is staying the same, you need to have your head examined.

    IMO, they cut back way too far way too soon, and it's coming back to bite them in the ass...hard. Many of you have seen the massive DEX 01 problems, understaffing, and big hours. How long do you think that's going to last? Incompetent as they are, Memphis will eventually get staffing right-sized and then start the wholesale movement of Express product over to Ground.

    Memphis also underestimated the employee backlash against their moves. That's why you're seeing the mid-year SFA's. They know that they have an unhappy workforce, and that the Obama re-election could possibly open some doors for unionization. Doubtful, but Uncle Fred doesn't want to jeopardize all the advantages he has been gifted over the years.

    Watch for a real sales job from Memphis about how "important" we are to FedEx while they simultaneously plot to kill your job or make it PT. Once peak is over, they no longer need you, or your extra hours. It will be back to "The Plan" and business as usual. They know they effed-up on the peak estimates, and they also know they effed-up with the handling of the October Surprise. Memphis is used to compliant, submissive employees who accept all of their dictates without question. Frankly, I think the employee reaction stunned them.

    I wish I were wrong, but I don't think so. R1a has also taken a lot of hits lately for his past posts, which were right on target. The one thing you always need to remember is that Fred can make a ton more money by shifting Express services over to Ground. The other is that he is a heartless bastard who doesn't give a crap if you live or die, prosper or starve in the gutter.

    Give it a few months, and see where the company is heading. Some of you are going to owe R1a an apology.
  2. vantexan

    vantexan Well-Known Member

    What you are describing won't happen in the area I deliver in. I get, depending on the rt, 2.5 to 3.5 hrs of stem time a day. As freight drops, and I'll agree with you that it will, they will probably restructure us into 5X8's from 4X10's. I just don't see the draconian measures R1a was talking about. IMO he had an axe to grind and was looking to do anything possible to be a disruptive force. FedEx also knows they need FT couriers as many PTers hire on with going FT in mind. The amount of turnover from little or no chance to improve one's lot would further cut into the bottom line and cause mgrs to leave too from all the hassle. There may be a restructuring of how they utilize employees, using PTers for P1, FTers for SO and pups where applicable. Or some other plan FAIK. But whatever they do it's their right, their company. We don't have union representation so we just have to roll with it. But I strongly believe it won't be the horrible conditions R1a predicted.
  3. MrFedEx

    MrFedEx Engorged Member

    I know you and R1a disagree and don't get along. I actually do think it's going to get rather draconian as they push for the $1.7B goal. This peak is going to cost them considerably more than they figured, and although profits may shoot up short-term, Fred has made his committment to Wall Street, and he needs to deliver. I agree that extended areas will never be affected much simply due to the structure you described of long stem times. Everyone else is fair game.

    It may be their right, but that doesn't make it right, especially for long-term employees such as yourself who have seen countless "guarantees" and "promise" reneged upon. There is nothing holding them back once they have their ducks in a row. The new generation of courier will probably never go FT in most cases because that isn't what Fred wants. Even if they do, it will be some undesirable mega-split or PM start (East Coast) where they can keep OT out of the picture.

    We'll see what happens in the months immediately after peak is over. I don't think it will be pretty.
  4. bbsam

    bbsam Moderator Staff Member

    Did I mention all those huge accounts coming to Ground soon after peak? I wonder where they are coming from...
  5. bbsam

    bbsam Moderator Staff Member

    And to be fair, they may be coming from UPS. I really don't know.
  6. vantexan

    vantexan Well-Known Member

    If they were from UPS I'd bet you'd see some posts about it on the Brown Cafe. In all honesty if they restructure our rts and I end up with a lot more driving and less actual delivering I'd be plenty fine with it.
  7. bbsam

    bbsam Moderator Staff Member

    So will I.
  8. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    The plan is still moving forward.

    I heard MT3 was bragging to all the seniors in a recent meeting how they are going to save x amount of money through attrition of senior courriers and not replacing them.
    If they weren't planning on shifting alot of volume to ground he would be talking about growing the workforce, not shrinking it.
  9. Rhoderunner

    Rhoderunner Active Member

    Our SM mention there's some big :censored2::censored2::censored2::censored2: happening in February. Of course no details but he said it was big.
    He said the memo has quite large. Again there is no substance here but Febuary was mentioned. Just passing it along.
  10. MrFedEx

    MrFedEx Engorged Member

    Hmm. I could take a guess.
  11. MrFedEx

    MrFedEx Engorged Member

    Once peak is over they can drop bombs at-will with no fear. I really doubt that UPS is the source, and that "The Plan" has simply been delayed until after peak.
  12. TUT

    TUT Well-Known Member

    1. This sort of has the same jingle to it as doomsday evangelists. Ok we missed the first date, but you can still see it's all setup just waiting to happen LIKE I SAID. Here I'll give you another date, that isn't really really soon, but not too far out that you walk away from me. Now everybody, lets live in fear together about a possible day that is even worse then it is now!

    2. "I wish I were wrong, but I don't think so." - I'll let it stand on it's own, but was worth singling out.

    3. I thought the idea of the cuts was to make Express more profitable so it can balance itself out closer to ground. Your company understands different shippers have different needs and many still really really truly need Express. And every public statement I've heard from Fred Smith he backs that up, he's offering a plethora of services for shippers to choose and he wants in every transportation market. I'm sure as a company they want all the operating companies to be making a healthy profit per piece.

    Preach on brother!
  13. vantexan

    vantexan Well-Known Member

    That's where I disagreed with wasn't enough that FedEx was going to restructure for more profitability. He was saying they were looking to hurt us as much as possible while restructuring. It was fearmongering pure and simple.
  14. MrFedEx

    MrFedEx Engorged Member

    Express is still profitable. The profit margins at Ground are so much greater for Smith that he's willing to gut Express and shift XS and E2's all about the money. IMO, all of the talk about saving $1.7B at Express is just a ruse to cover for the Ground switchover. Of course Fred will be able to save money at Express, because he's not going to need as many people, vehicles, or planes to move his product.

    I'm not a "doomsday evangelist" but if you worked here, you'd understand the way FedEx operates. They say one thing, and then do another. The one thing that looms over everything else is Fred's subsidized Ground division, which operates at an approximately 40% cost advantage over UPS and returns far more profit on a percentage-basis than Express. It should be obvious that Smith is going to move as much of the Express product line over to Ground as quickly as possible.

    Common sense.
  15. TUT

    TUT Well-Known Member

    1. As you read they are not buying out couriers because they know they need them. They are buying out managers that you think are stupid greedy people, so that should be music to your ears. Once that is done it is in hopes to make the Express margins better to the point, there is no reason to favor one over the other, even though I doubt they are even doing that now. Just that they need to make the margins better for express, no more than that.

    2. "I'm not a "doomsday evangelist" but if you worked here, you'd understand the way FedEx operates. They say one thing, and then do another." - Again dime a dozen, so many companies are like this, it is a wonder it all works, I grant you that.

    If it's common sense, then it is just something that has to happen, like paper giving way to electronics. Inevitable. Not evil.
  16. MrFedEx

    MrFedEx Engorged Member

    Almost. Inevitable...and also evil.
  17. Mr. 7

    Mr. 7 The monkey on the left.

    I'm gonna change my signature to ...
    "I don't believe anything I read on here"
  18. 59 Dano

    59 Dano Well-Known Member

    Sort of like how you say FedEx is going to do one thing, then it does another?
  19. MrFedEx

    MrFedEx Engorged Member

    They do. I think they were surprised at the employee reaction to the October announcement, and that scared them. I also think that they aren't quite ready to make the Ground shiftover happen, but they are very close. As bbsam has said, Ground isn't expecting a post-Christmas slowdown, and there are other rumblings about very large volume increases over on the Ground side.

    Fred knows that his profit per package is much higher over at the "non-employee" operation, so he's making every effort to sell Ground as an alternative to Express and to convince shippers to only use Express when it's absolutely necessary. This goes hand-in-hand with the massive improvements in Ground service times.

    One can never trust what FedEx management says, particularly if it eminates from Memphis. They have reneged on so many commitments to employees and reversed themselves on "firm" decisions that the only thing to really count on is when something actually happens.

    Come Dec. 26th, it will be back to business as usual, and watch the big accounts at Express start to disappear. There is every indication that Ground is going to take away XS and E2....just a matter of time.
  20. newgirl

    newgirl Member

    bbsam, how many drivers have you hired since you were told there was going to be an influx of volume?

    Are the managers getting buyout offers? I thought it was mostly Memphis-no one who touches packages.

    I am taking all of the hours I can this peak, I will be :censored2: if the world ends on the 21st.