UPS contract hurts or helps FedEx?

Aquaman

Well-Known Member
This October is going to be a really interesting pay raise for the company. You have UPS getting a deal done for an almost $50/hr top out… at the same time FedEx is trying to dismantle Express in favor of low wage, no benefits, contractor labor. You hear a lot of apologists say Express isn’t going anywhere. Just select markets. Business as usual. Well it’s going to be obvious after October what the real plan is. They know employee morale is lower than ever before. They see the constant panic on social media. They know the rumors. If we’re given a crappy 2%-3% junk raise in the face of looming layoffs and competitor flexing, it’s going to really spell the end for Express. If they give us a solid step raise, maybe they actually do have a plan. The investment they make in us this October is going to speak louder than any BS an ops manager thinks we’re dumb enough to believe.
 

Operational needs

Virescit Vulnere Virtus
This October is going to be a really interesting pay raise for the company. You have UPS getting a deal done for an almost $50/hr top out… at the same time FedEx is trying to dismantle Express in favor of low wage, no benefits, contractor labor. You hear a lot of apologists say Express isn’t going anywhere. Just select markets. Business as usual. Well it’s going to be obvious after October what the real plan is. They know employee morale is lower than ever before. They see the constant panic on social media. They know the rumors. If we’re given a crappy 2%-3% junk raise in the face of looming layoffs and competitor flexing, it’s going to really spell the end for Express. If they give us a solid step raise, maybe they actually do have a plan. The investment they make in us this October is going to speak louder than any BS an ops manager thinks we’re dumb enough to believe.
You don’t actually believe Express will give raises in October, do you?
 

Gone fishin

Well-Known Member
UPS went all in on their drivers and showed them respect , with that they’ll get quality workers. That means they’ll attract the best people applying at their company and be able to turn away the scrubs.
FedEx has taken the exact opposite approach. They’re trying to get to the bottom of the barrel, filling their company with anyone who applies. RAJ , a person who has no idea how to run a route and is strictly a numbers guy takes over because Fred couldn’t do his own dirty work.
If fedex doesn’t change direction , they’ll be ranked right behind RedExpress and Door Dash
 

bacha29

Well-Known Member
UPS went all in on their drivers and showed them respect , with that they’ll get quality workers. That means they’ll attract the best people applying at their company and be able to turn away the scrubs.
FedEx has taken the exact opposite approach. They’re trying to get to the bottom of the barrel, filling their company with anyone who applies. RAJ , a person who has no idea how to run a route and is strictly a numbers guy takes over because Fred couldn’t do his own dirty work.
If fedex doesn’t change direction , they’ll be ranked right behind RedExpress and Door Dash
Good workers or bad workers given the slowing birth rates there simply might not be enough physical laborers to go around after awhile.

If you're a Ground contractor just exactly how do you explain to a prospective new hire the pay disparity in a way that would make sense to that individual? UPS is clearly headed toward the next decade while Fedex is still stuck in the last one.
 

Guitarman01

Well-Known Member
Depends on how much damage control they’re willing to dish out. This company needs express not to collapse during the merge.
If they knew a massive layoff was coming I don't think step raises would prove what their long term goals are one way or another. Sure will give you an extra dollar, it won't matter much in a couple years. That's one way to look at it. Only time will tell. I would think it would be a pretty delicate process regardless.
 

btrlov

Well-Known Member
Unless this contract has an equivalent productivity metrics for drivers , there is no way UPS can pass all that labor cost to customers and satisfy investors . Most likely,

UPS will probably have to layoff management and other non represented titles or reduce benefits significantly to keep up with 6 figure drivers . They will also have reduce hiring and stuff those trucks even more. If not the teamsters will suck that company dry.

Postal workers will benefit as it puts that management team on notice - even if its illegal for them to strike. Im sure letter carriers wont be happy with anything less than 40 bucks an hour top pay by 2028

it puts Fedex in a pretty pickle beceuse now even the lowest IQ worker is hyper aware how low fedex is paying. Low wages=A transient workforce=lower quality and service=less business. The Fedex business model of bagels and trinkets rather than take home just wont be enough.

My guess is fedex will try to payout a one time bonus this fall to stop some bleed of productive workers- it will not stop the bleed. Express will be dominated by expensive 25+ year geriatric employees with “nowhere to go” and transient employees . the fedex version of the teamster parasite is its legacy 30year drivers and management that cannot afford to retire

Maybe walmart or amazon will merge with fedex. But right mow fedex is dying slowly and its self inflicted
 
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bacha29

Well-Known Member
Unless this contract has an equivalent productivity metrics for drivers , there is no way UPS can pass all that labor cost to customers and satisfy investors . Most likely,

UPS will probably have to layoff management and other non represented titles or reduce benefits significantly to keep up with 6 figure drivers . They will also have reduce hiring and stuff those trucks even more. If not the teamsters will suck that company dry.

Postal workers will benefit as it puts that management team on notice - even if its illegal for them to strike. Im sure letter carriers wont be happy with anything less than 40 bucks an hour top pay by 2028

it puts Fedex in a pretty pickle beceuse now even the lowest IQ worker is hyper aware how low fedex is paying. Low wages=A transient workforce=lower quality and service=less business. The Fedex business model of bagels and trinkets rather than take home just wont be enough.

My guess is fedex will try to payout a one time bonus this fall to stop some bleed of productive workers- it will not stop the bleed. Express will be dominated by expensive 25+ year geriatric employees with “nowhere to go” and transient employees . the fedex version of the teamster parasite is its legacy 30year drivers and management that cannot afford to retire

Maybe walmart or amazon will merge with fedex. But right mow fedex is dying slowly and its self inflicted
So what you're saying is that UPS has become a freight network that is too expensive to operate successfully while FDX is a freight network that's simply too cheap to operate successfully.

Both are determined to acquire and hold onto a controlling share of the market. Who wins? We'll see in a few years.
 

FedupExpress

Well-Known Member
Unless this contract has an equivalent productivity metrics for drivers , there is no way UPS can pass all that labor cost to customers and satisfy investors . Most likely,

UPS will probably have to layoff management and other non represented titles or reduce benefits significantly to keep up with 6 figure drivers . They will also have reduce hiring and stuff those trucks even more. If not the teamsters will suck that company dry.

Postal workers will benefit as it puts that management team on notice - even if its illegal for them to strike. Im sure letter carriers wont be happy with anything less than 40 bucks an hour top pay by 2028

it puts Fedex in a pretty pickle beceuse now even the lowest IQ worker is hyper aware how low fedex is paying. Low wages=A transient workforce=lower quality and service=less business. The Fedex business model of bagels and trinkets rather than take home just wont be enough.

My guess is fedex will try to payout a one time bonus this fall to stop some bleed of productive workers- it will not stop the bleed. Express will be dominated by expensive 25+ year geriatric employees with “nowhere to go” and transient employees . the fedex version of the teamster parasite is its legacy 30year drivers and management that cannot afford to retire

Maybe walmart or amazon will merge with fedex. But right mow fedex is dying slowly and its self inflicted
You hit it on the nose!
 

zeev

Well-Known Member
Move to get rid of couriers will move full force no reason to put up with wage demands from employees that will soon be gone. Let the contractors absorb the pain.
 

bacha29

Well-Known Member
Move to get rid of couriers will move full force no reason to put up with wage demands from employees that will soon be gone. Let the contractors absorb the pain.
From what I read FDX Express will be keeping only a very small force probably by and large part timers to handle expedited high value shipments. Ground will take the rest.

Anybody seeing anything different?
 

bbsam

Moderator
Staff member
From what I read FDX Express will be keeping only a very small force probably by and large part timers to handle expedited high value shipments. Ground will take the rest.

Anybody seeing anything different?
Could be happening fairly soon. Heard a rumor that we’ll be getting 2nd day freight after August 1.
 

zeev

Well-Known Member
Small work force retained but the Express stations will be closed already plans to take it to Ground stations.
 

Artee

Well-Known Member
From what I read FDX Express will be keeping only a very small force probably by and large part timers to handle expedited high value shipments. Ground will take the rest.

Anybody seeing anything different?
Oh that sounds like the plan, but we are in the first 10% of it. Lets see if it makes it to completion. 25 years ago FDX was going all in at trucking with converters and pup trailers. We have not had a converter in our yard in 15 years. What happened to all the DC-10 conversions, all the Airbus planes, dense makes sense, best practice pays, purple promise, traditional and portable pensions, step programs, 2nd and 3rd shift pay, split shift pay, jumpseat, everyone is a 4/10, .....nah....nothing stays around very long at FDX. If this merge makes it all the way through I would be surprised. If Raj is still here in two years or in the same role and has not been moved to the head of FDX Office, I would be shocked.
 
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