More Rumors

Here's something interesting, in a meeting this week our manager was nice enogh to give a a "pep talk" to let us know that Fred is thinking about moving our E2 and XS product to FedEx ground from Express. He attended a manager meeting with some of the company brass and on one of the slides it showed Ground taking over. He also stated that our service times were going to change. Priority product by 10 am versus 10:30. Has anyone else heard about this?

Also, I think it would be a huge mistake. The entire FedEx Ground thing has just been one huge dibacle. Independent contractors or FedEx employees, lawsuits, etc... Not to mention that there are a TON of complaints about the FedEx Ground service drivers. So, to all of you UPSers, get ready for more cause if this stuff is true, your gonna get a heck of a lot more coming your way. Way to go Fred, make another ty decision to run the company into the ground because of your greed while your workers are barely making ends meet.

[COSMOS]

I've heard similar rumors. From what I understood they were thinking of using the Ground network to move 2day and Express Saver within a certain radius from the ramp. This also coinsides with rumors about Ground trailers being spotted at Express facilities.

[MrFedEx]

The Ground trailers I have seen are air-only, with fixed roller systems. This makes them incapable of being bulk-loaded. This really lends credence to the rumor, because the E2 and XS air containers would need to find their way to the local Ground stations. All they would have to do to handle containers would be to install lifts and ball-mats. Has anyone seen anything like this being constructed at Ground facilities?

I haven't seen anything like that, but I spoke with a Home Delivery manager on my route. He said that they haven't heard anything but he said that he would keep his ears open. Also, in another thread you (Mr. FedEx) had made mention of buyouts in October of this year.

While this isn't the first time I've heard about the thought of buyouts, I had not heard of anything this soon. When my station had a meeting with our District Director earlier this year, someone asked him that same question and he said that he "had no knowledge or idea of any plans in offering buyouts because it wouldn't benefit the company by having senior employees who are knowlegable and productive on road leave the company."

If you've heard of something else, please fill me in. Thanks.

[MrFedEx]

I read about the buyout rumor on the FedExaminer site. The person who mentioned it referenced a Yahoo financial website and said that there would be buyout offers in October. I'm thinking they would love to get rid of most of the senior people, who are topped-out or close to it. Plus, older couriers tend to have more health issues and be away from work more often. They're also the ones who are quick to call BS on some of the games management plays.

If XS and E2 go over to Ground there would be a tremendous surplus of people on the Express side of the equation. I really don't think management cares that the experienced employees are really the backbone of the operation...they only see a new way to cut costs.

It's all about the money, and at this rate, FedEx as we know it won't be around much longer. We've gone from being the Nordstrom's of air express carriers to a shabby Wal-Mart clone. Unfortunately, the old adage "you get what you pay for" truly applies in this situation.

see, MrFedEx, I told you there was a way Fred would make contractors out of express employees. I for one am looking forward to the increased volume. bring it, baby, bring it!

[MrFedEx]

Originally Posted by bbsam

see, MrFedEx, I told you there was a way Fred would make contractors out of express employees. I for one am looking forward to the increased volume. bring it, baby, bring it!

Just how are we going to be contractors over at Express? If the contractor model fails legally at Ground, why do you think it would work at Express? Let's see, if you're an "employee", won't you lose the drivers you have working for you and become an employee yourself? All of that increased volume won't make you any money if you are paid by the hour instead of by the pkg. You'll just be an hourly package monkey like the rest of us. Fred will probably offer you something in the range of $14.00 per hour with lousy benefits. You'll love it...get ready to be abused badly.

[COSMOS]

Express drivers will stay employees. 2day and Express Saver will be moved by Ground CTVs within 2 or 3 days of the ramp.

[MrFedEx]

Originally Posted by COSMOS

Express drivers will stay employees. 2day and Express Saver will be moved by Ground CTVs within 2 or 3 days of the ramp.

Have you heard of any definite dates for any of this? After watching the stupid QDM video today the rumor seems even more plausible.

[New Englander]

In all honesty.....I've been predicting FDX goes the way of ground. Eliminating Express.

[MrFedEx]

Originally Posted by New Englander

In all honesty.....I've been predicting FDX goes the way of ground. Eliminating Express.

It would be very difficult for Ground to take over all of Express. Ground is not set-up for overnight services.

[fredly00]

They are offering LWOPs here(day off without pay) to keep volume up per courier.
I worry for those that make a career out of it here, lots of people will suffer.
But I'd imagine they'll go after middle management first. Why it takes 3 people to "run"
a station I'll never know

[UpstateNYUPSer]

Originally Posted by MrFedEx

It would be very difficult for Ground to take over all of Express. Ground is not set-up for overnight services.

I seem to recall a company that was established in 1907 which did not begin to offer air services until 1929 (discontinued in 1931 due to Great Depression) and then reintroduced air services in 1953. This company was solely focused on its ground component but its business model changed with the times and the air component was introduced.

To say that your ground component is not set-up for overnight services may be correct as of this point in time but I would not rule out the possibility of your ground and express components combining their operations. To be truthful, a combined FedEx would be much more competitive than the current divided format. I think we have all seen instances where both Express and Ground are delivering to the same customer at the same time. We have also been told that each component has their own sales exec so potential customers have to deal with 2 sales pitches from FedEx.

Combining both your ground and express components and securing Teamster protection would really allow you to make a serious dent in UPS operations.

[MrFedEx]

Originally Posted by UpstateNYUPSer

I seem to recall a company that was established in 1907 which did not begin to offer air services until 1929 (discontinued in 1931 due to Great Depression) and then reintroduced air services in 1953. This company was solely focused on its ground component but its business model changed with the times and the air component was introduced.

To say that your ground component is not set-up for overnight services may be correct as of this point in time but I would not rule out the possibility of your ground and express components combining their operations. To be truthful, a combined FedEx would be much more competitive than the current divided format. I think we have all seen instances where both Express and Ground are delivering to the same customer at the same time. We have also been told that each component has their own sales exec so potential customers have to deal with 2 sales pitches from FedEx.

Combining both your ground and express components and securing Teamster protection would really allow you to make a serious dent in UPS operations.

Good points. It's entirely possible that Ground and Express would combine at some point in the future, especially if FedEx is forced to make Ground contractors "employees". Such an alliance would also remove the FedEx "express carrier" exemption that has kept the Express division under the RLA. Teamster representation would very likely be the end result.

By the way, FedEx is already combining information services to align the different operating divisions. Your scenario could become reality sooner than later.

Well, we could only certainly hope so. I just wanted to give another update and ask if anyone else has heard of this newest talk. I was informed that the newest "pitch" going on stating that we are only currently running at 1998 volume levels and that the company is 2,500 employees over capacity. (Hence the rumor of the buyout options coming in October).

However, the catch is that they are looking to buy out the managers again like they did a few years ago by offering severance packages. Last time they did this, they had an overwhelming response and had to turn some (a lot) down. Well, we will just have to wait and see how true this is, and if so, a good thing, so we can get rid of some of the Hitler youth at the same time. Let me know if anyone else has heard about this.

[UpstateNYUPSer]

I think that this will at least be in the works before I retire (11 years).

It seems only a matter of time before Fred starts opening air operations up to contracting. It wouldn't be the first company to use both company drivers and owner operators and Fred has a large group of contractors who may want to get in on that action. Especially in California where ground contractors must own two or more routes, the idea of expansion within a territory becomes very attractive. That is how express moves from drivers to contractors. Slowly and methodically. A driver retires and FedEx opens the opportunity to an owner operator/contractor. I currently own several ground routes and a home delivery route. I don't see any reason why the company would be prohibited from moving in that direction. Remember that the Estrada ruling in California did not forbid contracting, merely the company's execution of compliance of the contract. Therefore, by what virtue would Express never be open to contracting other than that it never has been in the past?

[UpstateNYUPSer]

Many questions come to mind when you present the scenario of work currently being done by express employees being shifted/moved to independent contractor. It is obviously cheaper for FedEx to hire contractors rather than employees so, that being said, would it try to shift more and more of the work to these contractors at the expense of the employees? Are we talking layoffs of express employees while businessmen such as yourself continue to add routes? It is this notion that clearly shows why FedEx employees need Union representation. I assume delivery routes are bid by seniority much the same as we do at UPS. In your scenario, a driver retiring/resigning would result in a shift of that work to an independent contractor, thereby taking a bid route away from the express employees. I would assume that the more dense routes would be ideal for the contractor as opposed to the country runs due to the costs involved. What about the part time drivers hoping to one day be full time? Under your scenario, this would no longer be an option.

I see Fed Ex going in a different direction. I see the contractors becoming employees. I see ground and express merging.(Yes, jobs will be lost, but those who remain will have the job security that they do not currently enjoy). I see the Teamsters finally getting their foot in the door. I see Fed Ex becoming more of a competitive player in the industry and UPS finally realizing this and stepping up their game in response.

I don[t see ground and express merging. As I am sure that everyone here realizes, Fred is consistently anti-union and needs to keep them separate in order to transform express to the contractor model. To merge the two would probably make unionizing a slam dunk. But if it is true that Fred is shifting express freight to ground he is essentially downsizing express and growing ground. If contracting is cheaper for Fred then employees, then why would he make contrctors employees. And why would any contractor want to be an emplyee getting paid as MrFedEx put it "$14 an hour and crummy benefits". Furthermore, would contractors really believe they would be better off with a union? There are a few terminals out east that I believe have voted in the union, but I doubt they have gotten a better contract because of it. Years ago some terminals in Michigan unionized and ended up getting the shaft.

Terminals in Michigan did NOT, I repeat NOT unionize...Trust me, I would know.

[MrFedEx]

Originally Posted by The Mayor

Terminals in Michigan did NOT, I repeat NOT unionize...Trust me, I would know.

I agree. The ONLY employees I know of who have ever unionized at FedEx are the pilots (smart people). The former Flying Tiger flight attendants were union, and they were gone within a year of the merger. I've been told that the passenger charters were very profitable, but Smith couldn't stand the idea of any of his employees being unionized.