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A Quote From Fred
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<blockquote data-quote="Ricochet1a" data-source="post: 1007718" data-attributes="member: 22880"><p>The concept has been studied at business schools for decades, trust me.</p><p></p><p>Outsourcing of manufacturing has been done for at least four decades now. Japan began by getting their lower complexity components manufactured in the Pacific Rim (Indonesia, Malaysia, Singapore, Thailand) where labor cost was substantially lower than in Japan. Then by the 1980's, entire devices were manufactured in these countries for the export market (US and Europe). </p><p></p><p>Up until a decade or so ago, "outsourcing" of service industries wasn't really possible. What many countries did (Persian Gulf) was to import the labor to perform service jobs that weren't getting filled by nationals. These countries had enough wealth to import the labor - and no citizenry was displaced out of employment in the process.</p><p></p><p>What has happened with FedEx, is that Fred has managed to develop a way to "outsource" work WITHIN the borders of a nation - all by selective use and manipulation of labor law to his advantage. The airlines actually started this back in the early-90's with the development of "regional carriers" tied to the large airlines. </p><p></p><p>On the one hand, part of Fred's volume is moved by employees who are covered under one form of labor law (RLA), which prevents them from easily organizing. On the other hand, his "non-express" volume is moved by yet another group of "un-employees" (contractors), who aren't able to organize (due to their both being "un-employees" and working for numerous diffferent contractors). It is literally having and eating your cake at the same time. </p><p></p><p></p><p>So Fred managed to get around the intent of almost a century's worth of labor law - by both paying off the right people AND through deliberate division of tasks among different "operating companies" with different labor cost structures. So in this manner, one can say he did rewrite the book on labor utiliztion within the US. </p><p></p><p>And so far, that labor isn't doing much about it other than pissing and moaning about it - again, all part of the master plan of FedEx.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1007718, member: 22880"] The concept has been studied at business schools for decades, trust me. Outsourcing of manufacturing has been done for at least four decades now. Japan began by getting their lower complexity components manufactured in the Pacific Rim (Indonesia, Malaysia, Singapore, Thailand) where labor cost was substantially lower than in Japan. Then by the 1980's, entire devices were manufactured in these countries for the export market (US and Europe). Up until a decade or so ago, "outsourcing" of service industries wasn't really possible. What many countries did (Persian Gulf) was to import the labor to perform service jobs that weren't getting filled by nationals. These countries had enough wealth to import the labor - and no citizenry was displaced out of employment in the process. What has happened with FedEx, is that Fred has managed to develop a way to "outsource" work WITHIN the borders of a nation - all by selective use and manipulation of labor law to his advantage. The airlines actually started this back in the early-90's with the development of "regional carriers" tied to the large airlines. On the one hand, part of Fred's volume is moved by employees who are covered under one form of labor law (RLA), which prevents them from easily organizing. On the other hand, his "non-express" volume is moved by yet another group of "un-employees" (contractors), who aren't able to organize (due to their both being "un-employees" and working for numerous diffferent contractors). It is literally having and eating your cake at the same time. So Fred managed to get around the intent of almost a century's worth of labor law - by both paying off the right people AND through deliberate division of tasks among different "operating companies" with different labor cost structures. So in this manner, one can say he did rewrite the book on labor utiliztion within the US. And so far, that labor isn't doing much about it other than pissing and moaning about it - again, all part of the master plan of FedEx. [/QUOTE]
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