A Shill Is Born

vantexan

Well-Known Member
Why does Ground keep growing? Because it's cheap. And how did it get so cheap? Well, you create a scam system where "employees" aren't considered employees and pay them starvation wages with zero benefits. Wages so low that the government helps subsidize health care costs and perhaps even food stamps.Then you pass-off as many operating costs as possible to a "contractor" who gets paid a handsome sum to make the whole deal look legitimate. Then you have FedEx managers run the entire operation with an iron fist to ensure that FedEx policies and plans are followed to the letter. That's why the operating margin is 5 times that of Express. Fred has built himself a UPS clone with a fraction of the labor costs and zero benefit costs (for drivers). Ground's "success" is more the result of a corrupt CEO/Chairman exploiting an equally corrupt legislative system that is up for sale.

Have Fred (and Ground) won? Most definitely....for now. You'll keep right on growing until the legal system catches up with the scam. "No way Fred's going to stand for that!!" Hopefully, he'll wind up in prison where he belongs once the payoff trail gets exposed. Fred S is a corporate criminal.

No one is just standing by and letting this happen. There have been multiple lawsuits that have shaped Ground to the point it passes the smell test with the courts. Is it right what they're doing? Only in the sense that they are providing jobs to people who may not otherwise find one in this economy. And plenty will line up for part time jobs at Express when the time comes. Is it legal? Appears to be. Fact is no one is owed a great living. Not taking their side, I think it sucks. But nothing was done for us when there was the opportunity in Congress. Don't see that changing just because we don't like it. With so many people out of work they hold all the cards. Will be interesting to see how employees react when they finally realize what's happening. Could get ugly.
 

vantexan

Well-Known Member
I will be retired long before that happens but I do believe that our upcoming contract negotiations will include discussion on a two-tiered wage scale, with a lower starting wage, longer progression and lower top out for new FT hires after our contract is ratified.

Good luck getting people to hump like UPS drivers do for so much less than their coworkers. I put up with it by getting into rts that were easier on me physically. Does a UPS driver have that option? You fellas work!
 

UpstateNYUPSer(Ret)

Well-Known Member
Good luck getting people to hump like UPS drivers do for so much less than their coworkers. I put up with it by getting into rts that were easier on me physically. Does a UPS driver have that option? You fellas work!

Something needs to be done to reduce the disparity between our wages. Do you think Fred will give the Ground "employees" a raise?
 

Ricochet1a

Well-Known Member
Something needs to be done to reduce the disparity between our wages. Do you think Fred will give the Ground "employees" a raise?

Three guesses....

As long as the volume is getting moved, there won't be any upward pressure on Ground wages. In all honesty, the people that are in the driver's seats of Ground now aren't "displaced" clerical types. They will still be there when the economy does turn around. They might end up getting a slight boost to their pay, but there won't be any real pressure to really mitigate the differential between Ground and UPS.
 

UpstateNYUPSer(Ret)

Well-Known Member
Three guesses....

As long as the volume is getting moved, there won't be any upward pressure on Ground wages. In all honesty, the people that are in the driver's seats of Ground now aren't "displaced" clerical types. They will still be there when the economy does turn around. They might end up getting a slight boost to their pay, but there won't be any real pressure to really mitigate the differential between Ground and UPS.

I think you will see the pressure come from UPS.
 

UpstateNYUPSer(Ret)

Well-Known Member
Are you talking downward pressure on UPS wages (to better compete with Ground)?

Yes---I think you will see a two-tiered wage structure at least discussed during our upcoming contract negotiations. Lower starting wage, longer progression and lower top out for new FT hires as of the ratification date. Signing bonus to get it implemented.

This is not without precedent--the UAW adopted this in their most recent contract.

Will it weaken the union---good question.

Better question---are the Heat going to wrap it up tonight or are we going to OKC? I hope for the latter but am resigned to the former. I just can't get the image of that one hour "Where is Lebron going"? show and the arrival of the Big Three in Miami out of my head.
 

Ricochet1a

Well-Known Member
That's what I think, but will that also weaken the union? Two birds with one stone?

Well, sooner or later, the UPS types are going to have to finally deal with the fact that Ground is starting to "eat their lunch" and do something about it. I don't mean trying to out compete Ground - who in the hell wants to outcompete someone making the equivalent of $12/hr? I mean aggressive political action to get legislation introduced which would give clearer legal language as to when an independent contractor is really independent and when they are not.

Because if they don't, UPS will be forced within a decade to pull the same game FedEx is playing and spin off all of their delivery/pick-up operations into "independent service providers". The IBT would obviously strike If and when UPS tried something like this, but economics dictates there cannot be two actors in the same market doing the same thing with vastly differing cost structures - and have the actor with the higher cost structure survive for any length of time.
 

bbsam

Moderator
Staff member
Hasn't UPS already tried that? Maybe by that time the union would be too weak to pull off a strike? Are you sure UPS doesn't want to get there?
 

MrFedEx

Engorged Member
Precedent changes....
people interpret precedent, different people=different precedent.
sure, it may take years and years, but it clearly wont stand the test of time.

You're right. I think by the time Fred goes to jail they'll be back to issuing stripes instead of lifevest orange.
 
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