AGFS Panic Call

[MrFedEx]

According to my sources at the ramp, AGFS had an "emergency" conference call for all management yesterday concerning an abysmal SFA and the impending changes to the RLA. I'm hearing a 2% raise and re-starting the 401k match plan for now.

BFD!! That puts us where we were a year ago, and still about 15 years behind in wages and benefits. They're going to sell it hard if this is the plan and tell us all the sacrifices they are making "for us". Don't believe one freaking word from these liars. Please consider all they've done for us (to us) in the past. Screw the whole bunch of them.

[Hoaxster]

Originally Posted by MrFedEx

According to my sources at the ramp, AGFS

Aviation Gridded Forecast System ?

[over9five]

Allknowing God Fred Smith?

[MrFedEx]

Originally Posted by over9five

Allknowing God Fred Smith?

I like this one....very appropriate for the demi-god Smith. Actually, it's an acronym for the aircraft and trucking side of the FedEx Express operation.

[Ricochet1a]

I heard news to the same effect. Supposedly there was going to be a 1% pay raise for all hourly employees announced in the next week or so (been in planning stages since the pay raise was suspended in March). They're going to up it to 2%. Haven't heard about restoring the 401k matching funds. They'd have to do that to ALL employees (salaried and wage), or they'd have a riot among the salaried force in Memphis. It would be a "bone" from Fred and nothing more.

There is supposed to be some sort of meeting that Senior managers are going to have at their locations sometime this month, where they'll do a dog and pony show to try to gin up some loyalty for FedEx and try to convince/con the employees to not sign union cards if the RLA exemption gets pulled.

Assuming there was a conference call among AGFS (Air-Ground Freight System for the UPS folks), I didn't hear about a call among DGO (Domestic Ground Operations) managers; this tells me FedEx is scared, and their efforts to lobby the Senate aren't getting the results they are wanting. It has been awhile since I've been in the AGFS environment, but I know it has gotten even worse since I was there.

Looks like FedEx has blinked first. Trick is to keep them on the defensive and blinking until a contract is in force. The fight is starting to shape up ("choosing the battlefield" as is said in the military).

[MrFedEx]

Originally Posted by Ricochet1a

I heard news to the same effect. Supposedly there was going to be a 1% pay raise for all hourly employees announced in the next week or so (been in planning stages since the pay raise was suspended in March). They're going to up it to 2%. Haven't heard about restoring the 401k matching funds. They'd have to do that to ALL employees (salaried and wage), or they'd have a riot among the salaried force in Memphis. It would be a "bone" from Fred and nothing more.

There is supposed to be some sort of meeting that Senior managers are going to have at their locations sometime this month, where they'll do a dog and pony show to try to gin up some loyalty for FedEx and try to convince/con the employees to not sign union cards if the RLA exemption gets pulled.

Assuming there was a conference call among AGFS (Air-Ground Freight System for the UPS folks), I didn't hear about a call among DGO (Domestic Ground Operations) managers; this tells me FedEx is scared, and their efforts to lobby the Senate aren't getting the results they are wanting. It has been awhile since I've been in the AGFS environment, but I know it has gotten even worse since I was there.

Looks like FedEx has blinked first. Trick is to keep them on the defensive and blinking until a contract is in force. The fight is starting to shape up ("choosing the battlefield" as is said in the military).

I agree....good comments. I think we should adopt a "scorched earth" policy in our battle with these greedy SOB's.

[MrFedEx]

There's blood in the water, and Fred is just about to lose his shark cage. I wonder if he tastes like chicken?

[Ricochet1a]

Posted on the fedxmx.com site today.

http://www.teamster.org/content/fede...mbers-congress

Excerpt:

FedEx CEO Fred Smith’s arrogant campaign of threats and intimidation continued this week when his top spokesman threatened to take down members of Congress who oppose FedEx’s position on a key piece of legislation.

When asked about FedEx’s multi-million dollar ad campaign against the legislation that is reported to launch on Tuesday, June 9, top FedEx flack Maury Lane told U.S. News and World Report in a story posted in The White House Bulletin, “I’m going to try to destroy them.”

End quote

(the "them" who are going to be destroyed are members of the Senate - their political careers...)

Looks like that "panic mode" is in full swing. If FedEx has their people that are in the public arena making quotes like this, they are DEFINATELY off their game plan. Making threats in private is one thing, making them public usually has the opposite effect (no one wants to seem to be pressured by a threat in public, carrys with it a loss of "face").

FedEx's reaction to the possibility of its RLA exemption getting pulled is beyond what one can call rational at this point. It is now in the realm of paranoia. Paranoid people (corporations) are unpredictable, dangerous and usually are their own worst enemy. When faced with an opponent such as this; it is usually best to keep on feeding them rope, and let them place their own head in a noose.

However, it does confirm to me the measures FedEx will go to in order to prevent a successful unionization. I've posted about the measures I've heard about to prevent a successful unionization. Also makes the changing of the 1% pay raise to a 2% raise in the aftermath of the SFA disaster make more sense too (spread some cash around to prevent a unionization).

I think FedEx has taken the internal line of union avoidance at ALL COSTS (no contingency plan of even having unions in some locations). This means that the dirty tricks are going to extend to the employees if the Senate does vote to pull the exemption (that "bulls-eye" I wrote about). This is why keeping a low profile right now is best IMO, to keep any retaliation possibility minimized. If the RLA is pulled (as it looks more and more like it will be) then will be the time to sign a card. Once one signs the card though, make sure you cross every "T" and dot every "i" on the job; since the bulls-sye will be present and the time period between signing a card and actually getting contract protection will be "perilous". The pressure from Memphis to get rid of employees that have signed a card through whatever disciplinary measures they can cook up will be intense (if they are "threatening" U.S. Senators, they can do a WHOLE lot more to mere employees).


Regardless on one's political leanings, arrogance such as displayed by FedEx must be confronted and punished. This simply cannot allowed to exist without some sort of attempt to create a sanction against FedEx (a union perhaps??...)

Looks like it will be a very hot summer (and a very cold winter...).

[jimstud]

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

[Ricochet1a]

Originally Posted by jimstud

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

It is true. When Express honored it annual payraise committment, there was a variable payraise given to each employee based upon their performance review scores. The annual pay raise could be as low as 2%, but typically ran between 5 and 6.5% each year. There is no cost of living adjustment in addition to this pay raise. FedEx usually raises both the top and bottom end of each pay scale by 3% to keep some sort of equity with national pay scales (to keep new hires coming in, and letting senior people get something to account for inflation each year). So under the rule that were in effect prior to March, it would take an employee about 15 years to hit the top of the pay scale for their job. Way back in the day, FedEx had semi-annual pay increases and employees could top out in 4 years. It has gradually been eroded to what it is today.

So a situation develops where an employee gets their pay increase (or did), and moves up the 5 to 6.5%. But the top and bottom numbers move up 3% too. It really shows for the employees that have 3 to 6 years in. A Courier that is at their 6 year point is typically making about 140% of their starting wage on the day they started (remember 6 years of inflation means that about 18 out of that 40 percentage points is lost). The bottom end of Courier pay in the mean time moves up 18% (covering inflation so new hires can be attracted). The difference between a new hire and a Courier at 6 years is only a few bucks (about $2.50 on average).

That Courier that started 6 years ago got around $12.50/hr (forgot the exact rate). With 6 years of typical pay raises, that Courier is making around $17.50 now. A new hire will make $15 off the street right now. It will take another 8 to 9 years for that Courier that has 6 years in, to hit the top end of the Courier pay scale (which is just above $22 right now in market level A - lowest scale). Nine years from now (using the rules that were in effect until March) the top end for a Courier will be around $36.50. Remember though, there is a lot of inflation betwen now and then, so it isn't as "big" as it seems.

This is where having our defined benefit pension plan taken from us really hurts. It was automatically indexed to inflation (ones highest paid years when one "retires"). Now, they are throwing in a few dollars into a company controlled "fund", and paying something like 4.5% interest on it. That is outrageous. Before, we got a maximum of 50% of the average of our high three years for a pension at age 60. Since pay increased each year, the effects of inflation were automatically cancelled out (the company assumed the risk for any splkes in inflation). Now, one's pension is actuarialy determined by how big the pot of money in one's "personal" fund. The employees take the risk if there is a spike in inflation. If we see double digit inflation (which we probably will a few years from now with all the deficit spending), we are stuck getting a low return on our "investment" (which we cannot control). It is a sham, and my chief reason to end this abuse and get some sort of union in to keep games like this from continuing.

[partykid]

How would 30 months till top pay sound!! I went to top pay the day i was hired full time, cause i temp drove so much! All you Fed-Ex union basher's enjoy your 15+ year wait! JMO

[jimstud]

Originally Posted by Ricochet1a

It is true. When Express honored it annual payraise committment, there was a variable payraise given to each employee based upon their performance review scores. The annual pay raise could be as low as 2%, but typically ran between 5 and 6.5% each year. There is no cost of living adjustment in addition to this pay raise. FedEx usually raises both the top and bottom end of each pay scale by 3% to keep some sort of equity with national pay scales (to keep new hires coming in, and letting senior people get something to account for inflation each year). So under the rule that were in effect prior to March, it would take an employee about 15 years to hit the top of the pay scale for their job. Way back in the day, FedEx had semi-annual pay increases and employees could top out in 4 years. It has gradually been eroded to what it is today.

So a situation develops where an employee gets their pay increase (or did), and moves up the 5 to 6.5%. But the top and bottom numbers move up 3% too. It really shows for the employees that have 3 to 6 years in. A Courier that is at their 6 year point is typically making about 140% of their starting wage on the day they started (remember 6 years of inflation means that about 18 out of that 40 percentage points is lost). The bottom end of Courier pay in the mean time moves up 18% (covering inflation so new hires can be attracted). The difference between a new hire and a Courier at 6 years is only a few bucks (about $2.50 on average).

That Courier that started 6 years ago got around $12.50/hr (forgot the exact rate). With 6 years of typical pay raises, that Courier is making around $17.50 now. A new hire will make $15 off the street right now. It will take another 8 to 9 years for that Courier that has 6 years in, to hit the top end of the Courier pay scale (which is just above $22 right now in market level A - lowest scale). Nine years from now (using the rules that were in effect until March) the top end for a Courier will be around $36.50. Remember though, there is a lot of inflation betwen now and then, so it isn't as "big" as it seems.

This is where having our defined benefit pension plan taken from us really hurts. It was automatically indexed to inflation (ones highest paid years when one "retires"). Now, they are throwing in a few dollars into a company controlled "fund", and paying something like 4.5% interest on it. That is outrageous. Before, we got a maximum of 50% of the average of our high three years for a pension at age 60. Since pay increased each year, the effects of inflation were automatically cancelled out (the company assumed the risk for any splkes in inflation). Now, one's pension is actuarialy determined by how big the pot of money in one's "personal" fund. The employees take the risk if there is a spike in inflation. If we see double digit inflation (which we probably will a few years from now with all the deficit spending), we are stuck getting a low return on our "investment" (which we cannot control). It is a sham, and my chief reason to end this abuse and get some sort of union in to keep games like this from continuing.

that sucks.

[Ricochet1a]

I made an error in my calculation of the future pay rate of a Courier with 6 years time in service, 9 years from now. I forgot to clear out the values entered into the TVM (Time Value Money) financial calculation... It is actually just over $28/hr nine years from now, for a Courier that is making $17.50/hr right now. I should've known $36.50 was way off base (long day prior to posting).

[Ricochet1a]

This is the direct link to the article referenced in the Teamster’s link.

http://www.usnews.com/blogs/washington-whispers/2009/06/04/house-provision-could-cost-fedex-millions-stall-deliveries.html
Excerpt:
Federal Express is preparing to launch a multimillion dollar public-affairs campaign to derail House-passed legislation that would put the airline-based freight company under labor rules governing United Parcel Service, FedEx's trucking-based competitor. Worried that its costs could surge and overnight deliveries could be stalled by wildcat strikes if the changes are put into place, FedEx on Tuesday is expected to lay out a multimedia campaign using the Internet, TV, and paid advertising.
...
The campaign to stop the legislation from winning Senate approval will not target just wavering lawmakers. It's to be national in scope to also target customers and explain the difference in how each company is run. Unclear is whether it will also pick up on some FedEx charges that the provision is a bone to UPS and labor unions by Democrats in Congress. Also unclear is the impact of the company's threat to cancel its order for 30 Boeing 777 freighters if the Senate OK's the legislation.

End Quote

Wildcat strikes???... They must REALLY be freaked out by the results of the SFA. Also confirms my information regarding measures to ensure overnight deliveries can be made if particular stations do decide to engage in “wildcat strikes”.

If they are going to start making ads to the customers DIRECTLY to state their position, we’re going to have to do the same at all our stops. This is what I was talking about earlier, they are going to pull out all the stops to try to prevent us from even having the chance to decide if we want a union. We are going to have to do the exact same thing the UPS drivers did during their strike, talk to our customers and tell them we are just trying to stop the ongoing deterioration of our jobs. We have the advantage in that we can talk one-on-one, while FedEx will be using mass media techniques. If we keep a professional approach with our customers, we should be able to blunt the effect of Fred’s propaganda campaign. This is starting to become personal…

[MrFedEx]

I think the general public is finally starting to see through the FedEx facade. Fred's push against the RLA is beyond arrogant....it's obscene. Those of us on the inside have known he was a maniacal tyrant for years, and now his threats, tantrums, and tirades are letting the rest of the world in on the secret.

To have his shill Maury Lane directly threaten politicians is actually pretty stupid, at least from a PR standpoint. I'm sure Fred has some of them over a barrel because they've taken a lot of his money and "hospitality", but when are the rest of them going to grow a set and put this little piece of crap in his place?

As always, screw you Smith!!

[Testicular Fortitude]

Originally Posted by jimstud

a friend of mine just started driving for fedex and told me it took 15 years to make top rate. is this true?

Jim that was 15 years ago.As I have posted before any courier that has not reached top pay by now they never will until there is UNION REPRESENTATION at Fedex Express

[fredly00]

Couriers hired 15 yrs ago probably topped out in 2 years(they had a different system back then, don't know the cut off)

FedEx is panic'd they put out "anti-union" crap in our mailboxes, they are having a "state of the business" meeting in the next week or so at most stations.

Still trying to find out how to scan my "anti-union" crap and strip it of its source records in the file so I can hide myself.

[over9five]

Post copies of that anti-union crap. Love to see it!

[fredly00]

oh yeah and it names UPS as a Co-conspirator...

[MrFedEx]

Originally Posted by fredly00

oh yeah and it names UPS as a Co-conspirator...

Exactly. Fedex has painted the Teamsters and UPS as partners in the "crime" being committed against poor little Freddie. Posting it would be great...then everyone else on here can see how the propaganda program works.

[DorkHead]

Originally Posted by fredly00

oh yeah and it names UPS as a Co-conspirator...

It will be interesting to see if UPS is mentioned at all in FDX`s big add blitz this week. And even more interesting if UPS will respond publicly to any bad press in those adds!

[Ricochet1a]

Having done some reading on past actions by FedEx, led me to the old “FedUp” web site (inactive since 1999). It was the outlet for Kevin Osiowy out of Chicago area GYYA station. He wrote in 1997:

“In my heart, I will never again be able to place any trust whatsoever in FedEx management. I don't care if they fix our pension plan so that we'll not have to work for pimple-faced kids at fast food joints or hail cabs for rich folks in our retirement years. It matters not to me if FedEx gives us all the raises we should have been getting all along to keep even with the cost of living. What FedEx gives us grudgingly today, it can just as easily take away from us any time in the future. Until we are working under a contractual agreement with management, we all remain at their complete mercy. And as we've all seen throughout these past 6 to 7 years, mercy from FedEx management is administered in a most miserly fashion...
Last year (1997), when the union movement had Fred and the boyz running scared, did you notice that with each of the first two anti-union raises came the announcement that other raises were scheduled for the immediate future? Did you also happen to notice that when we received the last raise in February that it was conspicuously missing the announcement of any future pay increases? That's because the union impetus began to wane in the fall of ‘97 and Fred and the boyz are sensing that their anti-union tactics of raises and policy reversals have quieted the natives down. This only serves to prove that management at FedEx is anything but pro-active where it's employees' concerns are concerned. It is strictly reactive!

This was 12 years ago!!! It’s amazing how the same things come around again. Those who fail to learn the lessons of history are doomed to repeat it…. The funny thing is that FedEx thinks that throwing us 2% now will make up for wages that are over 30% below what they should be.

Kevin gave advice which mirrors the advice that I gave a week ago (what goes around comes around…).

“It's also important to understand that unless and until we become unionized, those of us who choose to discuss unionization with our peers are treading upon dangerous ground. When we were organizing our meetings at GYY, one of the organizers was written up for what management euphemistically called "solicitation!" This is the policy which states that employees cannot solicit support for non- corporate sanctioned causes such as bake sales, candy drives or charitable donations while on company property or during company time. So if you do talk to others about unionization, use common sense and discretion. Talk only to trusted and sympathetic peers and do so out of earshot of those who might be hostile to the union cause. Don't try to shove your beliefs down other's throats! If someone seems uninterested or unsympathetic, don't press the issue. Furthermore, don't alienate your peers by referring to those who do not support unionization in disparaging ways. Remain friendly and professional with all your coworkers regardless of where they stand on the subject of unionization. You will influence more people by positive behavior and will only serve to drive possibly sympathetic folks away if you attempt to browbeat or intimidate people into seeing your point of view.”

This is what I wrote about, that “bull’s eye” that will be placed on employees that speak that most “unholy word” on FedEx property: “union”. Kevin’s advice is most sage.

After bothering the people that keep me informed regarding the inner working of FedEx this weekend, I know that the coming weeks are going to resemble all out warfare by FedEx against the employees. FedEx saw what happened to UPS 12 years ago, and isn’t going to let it happen to them if they can do ANYTHING about it. Kevin wrote in his site that the pay disparity between UPS and FedEx back in ’97 was $3/hr for topped out drivers. It is now just under $6/hr, and the pension has been slashed too. At this point, there isn’t much else to lose, on the way down to being treated like the Ground drivers that get $13/hr with no benefits.

Fred is going to try to revert to a near pure part-time work force to minimize his labor costs. This may not be preventable without broad support for unionization this autumn. However, that shouldn’t stop people from trying to get a union in to get the pension restored and some sort of job security for the near term. When the first commercial spot hits the airwaves this Tuesday, Fred will have made his public declaration of war against his employees and will not-stop until his attorneys are hit by a court order to negotiate with the union in good faith.

[bubsdad]

I hope if you guys do get the opportunity to organize, Ricochet is on the negotiating committee. And should run for BA or at least Chief. Very informative posts.

[MrFedEx]

Great post Ricochet. I have not heard anything about an ad campaign except on this site. I'm assuming it's going to be some sort of anti-Teamster rant designed to create support among the sheeple for Fred and his fight for what's "good and right". Well, EFFU Freddie...

If that's what he's got cooking, isn't that going to explode in his face when his employees are shown publicly how far Smith is willing to go to throw them under the bus (again)? Even the purple people are starting to figure it out now, and they were like missionaries for the Church of Smith.

Your comments about only talking to trusted co-workers is spot-on. You and I understand how FedEx management works, but UPS people don't. The "solicitation" tactic is one that's been used before...with great success. They have operated outside the bounds of the law for so long that they think they can do anything and get away with it. Just another example of how the anti-union game is played at FedEx. To even talk about the Teamsters will get you on the watch list, which does exist because I've seen emails and memos that have names. You'd be surprised how many managers are on-board with us because they know the scam too. They hate it, but mouth the words because they know they'd be canned in a heartbeat if their names got to their superiors.


I hope Smith's tactics backfire and instead incur the wrath of both the public and his few remaining loyal idiots. He deserves to go down in flames, and when he has to open that fat wallet of his and release the hordes of moths inside, he's going to feel the pain where it hurts him most.

[over9five]

Originally Posted by over9five

Post copies of that anti-union crap. Love to see it!

An anonymous source sent me this:



(FEDEX LOGO)

Q & A on FedEx Express and the Railway Labor Act

1. What is the Railway Labor Act (RLA)?
The Railway Labor Act is a law that was originally passed by the U.S. Congress
in 1926 to govern railroad labor negotiations and limit economically crippling
strikes. The law was a direct response to several damaging local strikes that had
bottle-necked railroads, which were the only national transportation system of
that period. As transportation systems evolved. the law expanded to cover airlines
and express carriers, which are the dominant national transportation systems of
today. As an air express carrier with a combined air / ground network, FedEx
Express has been correctly covered under The Railway Labor Act since the
Founding of the company in 1972


2. Why is the RLA necessary?

The purpose of the RLA -- then and now ·— is offer employees a process by
which to unionize if they choose and engage in collective bargaining while also
protecting national (now global) commerce from damaging work Stoppages and
delays. Specifically, the FLA ensures that an entire Transportation system, like
FedEx Express, cannot be shutdown by the actions of a local segment of the
network. Removing FedEx Express from RLA jurisdiction could expose our
customers to the type of service disruptions that the RLA was designed to prevent
- local work stoppages in key areas that interrupt the timely flow of shipments
throughout our global network, Such protection is a vital business need for a
company like FedEx Express because it gives our customers the ability to count
on the reliability of our service.

3. What legislation has been proposed to change FedEx Express' RLA status?

As a direct result of lobbying by UPS and the Teamsters working closely together,
a provision has been added to the House of Representatives version to the FAA
Reauthorization Bill now under review by Congress. That provision aims to
amend the RLA to cover only FAA licensed employees such as pilots, aircraft
maintenance technicians, and aircraft dispatchers. If the provision passes into law,
all other employees at FedEx Express would be covered by the National Labor
Relations Act (NLRA). The provision is not in the Senate version of the hill at
this time.

4. Why are UPS and the Teamsters teaming up an this lobbying campaign?

FedEx Express has long provided superior express service to customers.
Handling air express shipments in a separate, dedicated network at FedEx Express
is a big reason for that. UPS it desperate to close the service gap with FedEx
Express, and the Teamsters are desperate for new dues-paying members to pay for
their sagging pension funds and expensive political agendas. UPS apparently
thinks removing many FedEx Express employees from RLA jurisdiction would
allow them to gain a competitive advantage, possibly by making our express
service less reliable in the eyes of customers. At the same time, the Teamsters,
who represent 250,000 UPS employees, only stand to gain if UPS beats FedEx in
the marketplace. One Point is very clear and something every FedEx Express
employee should understand: anything that UPS and the Teamsters want this
badly cannot be good for FedEx.


5. Why should FedEx Express remain under the jurisdiction of the RLA?

FedEx Express has been correctly covered by the RLA since our First day of
operation in 1972. All Employees at U.S. Airlines have always been covered by the
RLA. FedEx Express remains an airline-centered operation. with out pickup and
delivery network fully integrated with our air network to move Shipments door-to-
door. The RLA Status of FedEx Express has been continually reaffirmed by
courts and federal agencies. In 1996, Congress also reaffirmed that our
employees were: classified properly under the RLA. Every court or agency that
has looked at the issue has ruled that FedEx Express belongs under the RLA.
That is why UPS and Teamsters are now putting so much time money and
effort into changing the RLA itself

6. Are the employees at FedEx Ground and FedEx Freight covered by the RLA?

No. Like UPS, FedEx Ground and FedEx Freight are covered by the National
Labor Relations Act (NLRA) Our integrated air and ground network
differentiates us from FedEx Ground and FedEx Freight. The fact that FedEx
Express is a separate and distinct network for air shipments is what separates us
from UPS.