AGFS Panic Call

Ricochet1a

Well-Known Member
SFA,(Survey Feedback Action?) honestly not 100% what it means, but what it is
is a Survey on the company, your senior manager and your managers

SFA is an annual ritual of FedEx where upper management can do two things at once. They can gauge how effective their operations managers are at creating harmony within their workgroup, and they can gauge the level of frustraton of employees with FedEx's level of compensation. If an Ops Mgr gets "nailed" on two consecutive SFAs (given once each year), they are usually removed. The Ops Mgr is FedEx's frontline defense against hourly employees wanting to certify a union. An Ops Mgr that has employees that are angry at them and FedEx (while other Mgr's have favorable reviews), is a liabilty to FedEx and is more often than not removed. SFA has been traditionally been administered in late March/early April of each year (not this year). Managers prepare for this by being a little more human towards their employees in the weeks leading up to the SFA, then revert to normal FedEx mode after the results are in.

This year SFA was delayed till late May. FedEx performed what they called a "loyalty survey" in January to gauge the level of frustration of employees with FedEx after the taking away of the defined benefit pension plan. It was only administered to a few employees, whereas SFA is given to all employees. The result of the loyalty survey is what caused the SFA to be delayed this year. It didn't help. FedEx got slaughtered. This in combination with the lack of results in lobbying the Senate to preserve the RLA classification is what led to the decision to start the media blitz Tuesday.

Supposedly the SFA "process" is what the acronym suggests: Survey then Feedback on the Survey (workgroup meeting with Mgr to discuss results), then the company is supposed to take Action. It is a joke. The workgroup meeting is a vent session. The employees talk about everything that is wrong, the manager takes furious notes, and then afterwards writes up a report with the suggestions and most common problems discussed. This is sent up the chain of command, and a summary report is created. If common themes present themselves, they can be addressed by corporate. It is in reality a barometer of employee frustration with the company. Most employees recognize this after a couple of years of employment (the things that were problems in the last SFA never got "fixed"). They learn that what they see as problems are not problems for FedEx, and will never get addressed. This is when they become disillisioned with the entire process and begin to wonder what they've gotten themselves into.
 

Ricochet1a

Well-Known Member
Fred has posted his website to fight against FedEx employees attempting to unionize... and he make a rather unskilled attack against UPS in the process. The site is

brownbailout.com

It includes a rather insulting video (no idea if it is the one that will be aired nationally), a blog of all things (no entries as of my typing this) and a set of PDFs in their "newsroom" that strangely mimic the propaganda that FedEx put out to its employees on 06.01 (the one that is posted in this thread). This is what we are up against, so read and take your high blood pressure medication if so prescribed, you'll need it.
 

Ricochet1a

Well-Known Member
This is an excellent summary of the campaign out of Business Week.

FedEx hopes to harness taxpayer ire sparked by the word "bailout" to kill legislation in Congress that would help nearly 100,000 of its workers to unionize more easily. FedEx argues the bill would hobble it with higher costs and less reliability across its network and represents unfair government aid for its chief rival, UPS.
The dispute involves the FAA Reauthorization Act of 2009, which contains a provision that would change the labor law covering FedEx workers. Language introduced in the bill by U.S. Representative James Oberstar (D-Minn.) would subject FedEx workers to the same rules as those performing similar work for Atlanta-based UPS. The measure affects employees of FedEx Express, which along with FedEx Ground, FedEx Freight, and FedEx Office comprises FedEx, but not the status of FedEx Express workers who are air-based, such as pilots and airplane mechanics. The bill passed the House on May 21 and is now in the Senate, where a similar House measure failed in 2007.
FedEx's campaign, dubbed "Brown Bailout," debuted June 9 online and could be followed by television and print ads. The company wants consumers to complain to their senators about the legislation. On Brownbailout.com, the FedEx campaign's Web site, a man in front of a whiteboard describes "getting a government bailout" in a manner similar to UPS' "Brown" marketing campaign. After stating that UPS is struggling to compete with FedEx, which ships a higher percentage of its parcels by air, the man says, "So what do you do? Well, you could try to improve your own business…well, that's hard work. Instead, how about slipping a few words into an important government bill that gets you a bailout?" He uses his marker to turn the S in UPS into a dollar sign. "We're doing it right now, but shhh…don't tell anybody."

End Quote

Fred is going to try to keep FedEx employees from unionizing, by attacking UPS and trying to make the argument that FedEx is an airline, and not a "trucking company". This is classic smoke and mirrors. Fred can't directly attack the employees, so he takes what is known in military circles as the "indirect approach". One doesn't go straight at one's objective, one takes an easier course of action which will inevitability achieve one's real objective in due course. By framing the issue as granting UPS an unfair advantage (what Fred is trying to call a UPS "bailout"), he can achieve his true objective in keeping FedEx employees from being able to successfully unionize. Like I wrote before, he is "fangs out" on this one.
 

MrFedEx

Engorged Member
Guess who Fred wants to keep in the dark about brownbailout.com? That would be his employees,of course. No mention of it at all, nor anything about the RLA in today's meeting.

What was discussed was raises, which are "on Fred's desk", as is the 401k plan. Isn't it interesting that any decisions are still "pending" or being "discussed". Could it be that Fred is awaiting a decision on the RLA so he can tell us NO if he wins, or give-out a token 2% and the 401k if he loses to try and buy back some semblance of loyalty. Yeah, that would be it.

This guy is so slimy and sleazy that he makes Richard Nixon look like a cherub. When are FedEx employees going to wake-up and see this monster for what he really is?

STOP DRINKING THE EFFING KOOL-AID AND GET A GRIP!!! What is it going to take to make you actually realize that you are nothing but pawns in his little game? He needs to be stopped.
 

FedEx All the Way!

Well-Known Member
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.

Of course, you are the man that knows all the laws. You really don't understand - if Smith's tactics backfire - you and so many others will be out of a job and in this economy it would be very sad.

You also sound like a very disturbed and unhappy person. Why would you want to see anyone go down in flames and anyone hurt? I strongly believe you need some help. May I suggest asking Fred to assist in that.
 

MrFedEx

Engorged Member
Of course, you are the man that knows all the laws. You really don't understand - if Smith's tactics backfire - you and so many others will be out of a job and in this economy it would be very sad.

You also sound like a very disturbed and unhappy person. Why would you want to see anyone go down in flames and anyone hurt? I strongly believe you need some help. May I suggest asking Fred to assist in that.


Once again, an incredibly pointless post. Please keep supporting Fred and his current inane campaign.
 

FedEx All the Way!

Well-Known Member
Once again, an incredibly pointless post. Please keep supporting Fred and his current inane campaign.

I am writing to voice my opposition to the "Brown Bailout" – the language inserted by UPS lobbyists into the FAA Reauthorization Act of 2009 that will bring havoc to our nation’s overnight-delivery system— The "Brown Bailout" essentially exists as a special favor for a huge company at the expense of Americans like me, and is being pushed through Congress without hearings or public debate over its potential impact on our economy.

We rely on an overnight delivery system that is dependable and affordable. Prices have never been lower, service has never been better, and access to global markets has never been greater. It seems reckless to destroy something that works so well for all of us.

Say no to the "Brown Bailout."
 

FedEx All the Way!

Well-Known Member
The above anti-union infomation was made available to FedEx employees on 6/1/09. Most stations just posted it on the station bulletin board, some photocopied the whole thing (it is a few pages) and stuck a copy into the "mailbox" of every employee. The above anti-union document was signed by Bronczek, head of the Express "division" of FedEx Corporation.

The ad campaign which starts tomorrow will be targeted to strategic markets. The Washington DC media market will receive the majority of the airtime. This is intended to provide the greatest bang for the buck in reaching Senators and more importantly their staffers. Those that live in the DC market are familiar with the running of ads that are targeted specifically for Members of Congress and their staffers (which aren't aired in other US markets).

The majority of the remainder of the ads will be targeted in the states who have Senators that sit on the Transporation Committee of the Senate. This is to get their constituitents to call/write to keep FedEx's RLA exemption in place. Those who live in states that don't have Senators on the Transportation Committee, or are represented by primarily a Republican delegation probably won't see any of the spots (unless they happen to be watching a national cable channel (CNN, Fox etc.).
 

FedEx All the Way!

Well-Known Member
As one of your constituents, I am writing to voice my opposition to the "Brown Bailout" – the language inserted by UPS lobbyists into the FAA Reauthorization Act of 2009 that will bring havoc to our nation’s overnight-delivery system—and share my hope that you will oppose this legislation, as well. The "Brown Bailout" essentially exists as a special favor for a huge company at the expense of Americans like me, and is being pushed through Congress without hearings or public debate over its potential impact on our economy.

We rely on an overnight delivery system that is dependable and affordable. Prices have never been lower, service has never been better, and access to global markets has never been greater. It seems reckless to destroy something that works so well for all of us.

Please say no to the "Brown Bailout."
 

unionman

Well-Known Member
As one of your constituents, I am writing to voice my opposition to the "Brown Bailout" – the language inserted by UPS lobbyists into the FAA Reauthorization Act of 2009 that will bring havoc to our nation’s overnight-delivery system—and share my hope that you will oppose this legislation, as well. The "Brown Bailout" essentially exists as a special favor for a huge company at the expense of Americans like me, and is being pushed through Congress without hearings or public debate over its potential impact on our economy.

We rely on an overnight delivery system that is dependable and affordable. Prices have never been lower, service has never been better, and access to global markets has never been greater. It seems reckless to destroy something that works so well for all of us.

Please say no to the "Brown Bailout."
Sorry, Bush has left the building. Why should the Democrats give Fred special treatment at the expense of his employees? Unions have been kicked around for decades now and look what has happened to the middle class.
 

MrFedEx

Engorged Member
Sorry, Bush has left the building. Why should the Democrats give Fred special treatment at the expense of his employees? Unions have been kicked around for decades now and look what has happened to the middle class.

More great ideas from the people who want to put Ronald Reagan on Mt Rushmore. This is a "Hail Mary" from Smith, and it's going to be intercepted in the end zone.

I will now translate for FEATW.....FRED'S PLAN IS GOING TO FAIL.
 

upandcomer

Well-Known Member
As one of your constituents, I am writing to voice my opposition to the "Brown Bailout" – the language inserted by UPS lobbyists into the FAA Reauthorization Act of 2009 that will bring havoc to our nation’s overnight-delivery system—and share my hope that you will oppose this legislation, as well. The "Brown Bailout" essentially exists as a special favor for a huge company at the expense of Americans like me, and is being pushed through Congress without hearings or public debate over its potential impact on our economy.

We rely on an overnight delivery system that is dependable and affordable. Prices have never been lower, service has never been better, and access to global markets has never been greater. It seems reckless to destroy something that works so well for all of us.

Please say no to the "Brown Bailout."

This is great!

Lets count the lies!

1) UPS Lobbyists inserted nothing...that's not even possible.
2) It will no way bring any havoc as nothing would change in the near term.
3) There is no favor being done as government is not in the business of granting favors.
4) It hurts nobody except shareholders of FedEx, not average working people as you would imply.
5) There will be hearings as it is in committee and that is what committee is all about. This is why they are called committee hearings. Amazing!
6) There is never public debate in the process of creating legislation in the United States. (When was the last time you were invited to the US Capital to share you opinion on any Bill?)
7) This one bill will have zero effect on our economy, and is actually very egotistical to think that FedEx POSSIBLY having to pay their employees a little more would in any way effect the entire US economy.
8) Prices have been lower.
9) Service has been wayyyy better. But at least we can both say we are not the USPS!!!
10) The only person that the current system works really well for is FedEx, while hundreds of national, regional, and local delivery companies are hurt by the double standard created by the RLA.
 
At our meeting today we watched frontline with our senior manager. The important issue with frontline this month is that Fedex wants to cut overtime and increase our stops per hour by 1. This means more work less pay,haven't we heard this before. Do you think that the company would try and put a good spin on things so maybe we might think twice about the union. But no mighty Fedex does what it always has done and demand more and more from us with out proper compensation. In a meeting that I stated before with the VP of the region he said our stops per hour were the highest ever so I ask how can they go up with volume levels equal to 1998,per Fedex. After frontline our senior read the handout about the RLA and the effects of the union. He stated this would be devastating to the company and change the way Fedex does business. I strongly feel that Fedex is really worried about this issue because they would loose total control over us and would have to answer to others. I don't know if I am in favor of a union but I am willing to do what ever I can to keep my job and stop the madness of Ground taking our work. The only thing I can suggest is that people read these statements because the more knowledge you have the better off you will be in the long run. To Mr.Fedex and Ricochet1a keep up the great work you both have made many realize the real truth about these very important issues..
 
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Ricochet1a

Well-Known Member
Part of the disinformation that FedEx is putting on their brown bailout site is that having the RLA classification pulled, would result in a “package tax”. Fred gets real creative with his math. Using FedEx’s own numbers, FedEx had $22.4 BILLION in revenue FY 08 and moves an average daily volume of 3.4 million packages. On one of the PDF’s linked to his propaganda site, he has the following paragraph:
· “So how much will this cost the consumer? Estimates vary, but a mere 10 percent increase would mean a more than $5 billion “hidden package tax” to shipping companies and consumers. Prices would go up, just when our economy needs a break.

He uses the plural “shipping companies”, so he tries to cover his base there. But there is a problem, a big one. If FedEx loses its RLA classification UPS rates won’t go up at all, since they already pay union wages. Doh!!! DHL is out of the US domestic market. So using Fred’s estimate of needing a 10% increase in his revenue to cover the cost of a union (which is about double what he would really need), take the $22.4 BILLION figure and multiply that by 10%. I keep on getting $2.24 BILLION no matter how hard I try to get his $5 BILLION figure. So we caught Fred in a bit of a fib…

Now let’s use some real numbers. FedEx employs both full and part-time employees. The Courier and RTD jobs are predominantly filled with full time employees (right now). If we use what FedEx calls “full-time equivalents”, we can use a figure of approximately 35,000 FTE employees in the US. Bringing back the defined benefit pension plan, getting back to a reasonable top-out time and bumping up the wage rate slightly would cost about $20,000 annually per FTE (bringing up the average FTE compensation per year up from the mid $40’s to the mid $60’s). Let’s do some “real” math. 35,000 times $20,000 gets me $700 million every time. This would be $700 million a year in additional labor expense for Fred, out of annual revenues of $22.4 BILLION (FY08). Put another way, it would cost FedEx an additional 3.125% to their rate schedule to cover the expense. This assumes that Fred doesn’t change the executive compensation, doesn’t cut the dead weight in the corporate headquarters, or makes any other sensible changes to the business model. If anyone has any current “hard” numbers for the number of Couriers and RTD’s employed, please post them, I’m working off memory on the numbers of employees in these classifications.

To further illustrate how out of touch FedEx management is, look at the Kinko’s debacle. Kinko’s was acquired in 2004 for around $2.4 BILLION. Almost two-thirds of that has been written off as a loss since the acquisition. Latest losses related to the Kinko’s acquisition are in the neighborhood of $1.6 BILLION, and rising every month. Fred’s decision to purchase Kinko’s has cost FedEx $1.6 BILLION, and they haven’t even had a vote of no-confidence on the board (because the board is packed with his cronies).

Let’s use Fred’s worst nightmare, and assume he has to buy off the union with wages and benefits that match UPS’s. UPS drivers receive a compensation package worth a little over $90,000 a year in wages, benefits and pension. That is almost double the average FedEx Courier/RTD. Let’s use a figure of an additional $40,000 a year per FTE in compensation as a result of the union. $40,000 times 35,000 FTE gets me $1.4 BILLION a year in additional labor expense. That works out to precisely a 6.25% increase in the rate schedule to cover the labor expense, NOT the 10% he was talking about.

Here is where he gets that 10% figure. If he has to pay near equivalent compensation rates to his Couriers/RTD’s as UPS pays their drivers AND he has to restore the pension plan to ALL salaried employees AND he has to bring up salaried employees compensation up a bit to restore the differential in compensation between hourly and “professional” employees, he may just approach that 10% figure. In other words, Fred would lose his built in 10% cost structure advantage over UPS if he had to pay equivalent wages and compensation across all levels. That 10% is his annual profit goal. He’d have to make changes to the rate schedule, eliminate the fat in the headquarters and dramatically reduce executive compensation to get back to the profit margin as a percentage of revenue that he wants.

Working the numbers, and using FedEx’s own figures and propaganda, one can see what Fred fears. FedEx believes that the worse case scenario is looming, and they will have to pay UPS equivalent compensation across the board within a year.

As far as cutting OT and increasing stops per hour year again… It begs the questions… If we need/can have additional stops per hour now; it means that by default Couriers were screwing around in the past (don’t’ think so). If we have lower package volumes and are covering a greater geographical area per route as a result of condensing routes; it means that by default we should have fewer stops per hour (increased distance between stops means fewer stops per hour). Nope.

All they can see is that their cost per delivery is increasing when they look at the spreadsheets and the solution they see is to crack the whip and make us try to go even faster. We are actually going faster than we ever have. But it has a cost; we are spending less and less time with the customers. We perform a resi release on packages before we even leave the truck (don’t even bother to get a signature anymore). We rush our business customers to sign the power pad (even to the point of shoving it into their face), so we can get back in the truck and keep the pace up. Service is dropping, so we can try to keep up with the ever increasing stops per hour goal. By the way, weren’t stops per hour removed as part of the performance review? It is supposed to be scan compliance, safety, station work performance attendance and punctuality, isn’t it? Another FedEx falsehood in the making???

Fred must see Armageddon if he is this scared. Means the info I received regarding the SFA being a disaster for FedEx must’ve been true. Keep on feeding out the rope, and Fred will hang himself.

This tells me the momentum is with the employees. I’d be happy with getting the pension back, a 4 year top out, guarantees to preserve full time positions, some moderate increase in the pay scales (not expecting UPS wages), and possibly a reduction in the insurance premium. For a first contract this would be a big achievement. In later contracts, a gradual trend towards narrowing the gap with UPS would be a goal. What I’d like to see for a first contract is entirely achievable for FedEx without throwing them into bankruptcy (a cost to FedEx of 3.5 to 5% of their annual revenues). With some sensible changes to the business model, a very slight increase to the rate schedule and a corporate review of over-time expenses, this modest increase in expense could be covered and preserve profits at the same time.
 
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bbsam

Moderator
Staff member
I have a couple serious question. If Fedex becomes covered by NLRA, why would Fedex continue to use employees and not move to a contractor model like ground where unionization is more difficult? Secondly, if Fedex were to become members of the Teamsters, and Fedex went on strike, would UPS workers strike also? Or does Teamster loyalty end at the company door?
 
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