OK so we are all pretty aware of the "operating plans" but what could the "cost structure plan" entail ? Is this where the possible buyouts and workforce reductions fall under ?
Bingo! You get the prize.
The expenses Express incurs can be divided into two broad categories:
1. Capital equipment purchase, maintenance (replacement parts, etc.) and operation (mainly fuel expense)
2. Labor
Express has already made public its intentions in relation to the first broad category. They will reduce the size of the line haul capacity (in reaction to a view of a long-term contraction of air cargo demand), by reducing the number of jets in service (taking the older most fuel inefficient aircraft out of service and not replacing that capacity entirely with new aircraft).
They will also rapidly convert their ground vehicle fleet away from the large W700s as being standard, to smaller, more fuel efficient Sprinter type vehicles. This is all in anticipation of reductions in volume that will be going through Express - BOTH due to lower customer demand for air cargo service AND a shift in the method of delivering air cargo once it arrives at the destination ramps.
The "cost structure plan" in relation to the first broad category has already been made public (mainly to help boost stock price, showing the market that FedEx Corp does indeed intend to boost profit margins in the near future).
The cost structure plan in relation to the second broad category has already been decided upon - just NOT made pubic as of yet... for the simple reason that they need to make preparations to ensure no issues develop with labor getting pissed off about what is going to happen to them.
Aircraft tend not to complain too much if they are "taken out of service". Labor on the other hand does tend to complain if they are taken out of service and can cause problems.
The "fall announcement" has everything to do with the rolling out of delivery manifesting (I believe the operational term is "Dynamic ROADS").
Delivery manifesting is due for a September roll out (this fall....).
This will make the need for experienced Couriers a thing of the past. Look at Ground of today, you will see the Express of the near future (in terms of what they do, not talking in terms of IC model and other stuff).
Once delivery manifesting is fully implemented, then FedEx will absolutely no fear whatsoever of Express unionizing. Not that the capability makes unionizing impossible, but it makes the need to negotiate with a potential union absent.
For the Ground contractors... how long does it take you to get a new hire trained and reasonably proficient in running a route you throw them? (This is not a rhetorical question, the current Express Couriers will be a bit shocked to learn how quickly someone off the street can start working with a fair degree of proficiency).
Then as part of the second shoe dropping (shifting of delivery of 2nd Day volume over to Ground), the need for full-time employees within Express DGO will virtually disappear (they'll still need full-timers to act as Swing Couriers and Couriers for extended area routes).
The way a labor force is "taken out of service" and replaced with "more cost efficient methods" is to buy out or offer early retirement to the "inefficient" labor force (inefficient in terms of cost to operate), and replace that labor force with a force that is much less costly (less costly in terms of actual compensation, and less costly in terms of potential to unionize).