MAKAVELI
Well-Known Member
I don't think the old man even cares anymore. He made his $billions and that will go to his heirs when he is gone.
An Unjustified Competitive Advantage
- Thread starter MrFedEx
- Start date
MrFedEx
Engorged Member
I'm hoping the information finds its way into the right hands. My Congress people aren't much for action on this front, so I keep plugging away and hoping the truth prevails. I have been in contact with The Teamsters and "they are working the issue". I'm sure UPS "owns" a few politicians as well, so it might be time to start working the system like Fat Freddy.
Saw something earlier this evening that might prove interesting.
MESA Airlines operating results. They're ending their feeder contract with American on 4-1 . Switching to United Will sell of most if not all of their own planes and will fly United owned planes.
AS a testament to the acute shortage of pilots MESA had to give their own pilots a new contract that will increase pay 172% In addition they will implement a program that will train pilots for United and will move them up to United within 24 months.
This has the looks of ending up the mother of all cluster fornications.
MESA Airlines operating results. They're ending their feeder contract with American on 4-1 . Switching to United Will sell of most if not all of their own planes and will fly United owned planes.
AS a testament to the acute shortage of pilots MESA had to give their own pilots a new contract that will increase pay 172% In addition they will implement a program that will train pilots for United and will move them up to United within 24 months.
This has the looks of ending up the mother of all cluster fornications.
fedx
Extra Large Package
Except for Alaska and Hawaii. Express will no longer be a separate OPCO with separate systems. You are deliberately ignoring the facts that FedEx is combining the two systems along with Freight. RLA status will be challenged and removed in the near future.
The company has also identified $2 billion in annual savings starting in fiscal 2025 from Network 2.0, which effectively brings to an end the siloed operating model of the past 50 years and replaces it with a unified and integrated network.
FedEx to rely more on outside airlift to support in-house air services
Company looks to push a more agile air network.www.freightwaves.com
FedEx has chosen Alaska and Hawaii as key testing grounds to merge FedEx Express and Ground operations. It is expected that similar initiatives will be rolled out across the contiguous 48-state network.
With all this money FedEx is going to be saving including the 4,000 upper executive level pink slips, do you think we'll get a pay step progression this year?
I'm not betting on it, but what do you think? That article makes it sound like Express is really going to trim down their volume on purpose. FedEx even brags they are going to have one unified network among their divisions, so I don't see how they will still be able to maintain their RLA protection.
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MAKAVELI
Well-Known Member
Doubt it. Hiring freeze and cutting labor costs will most likely stop pay step progression this year. Raj has full intentions of " sweating the assets".With all this money FedEx is going to be saving including the 4,000 upper executive level pink slips, do you think we'll get a pay step progression this year?
purplelife
Well-Known Member
Highly unlikely on the step, probably 2% just so they can say "atleast you got something, a lot of people didn't get anything"
Tell me if you've heard that one before....
SmithBarney
Well-Known Member
It's not the case, a two or more trucks take packages from our ramp to the local ground facility for final mile delivered by Ground contractors.
Cactus
Just telling it like it is
And probably two or more trucks bring them back to the ramp the following day because whiney Ground drivers refused to deliver them.
By the looks of things Fat Freddy is now going to be little more than an air freight broker.
Can't you hear it now? Raj talking to one of his pilots:
Raj: "Oh, before you go I just wanted to let you know that we sold your plane and your route to Beserkistan Airways, located in some god forsaken s*it hole of a place I never even heard of....But, they say you can have a job with them. Won't guarantee you the same route and you'll make I don't know, half maybe a little more. Don't know anything about their benefit plan and instead of flying 25 hours a month you'll be flying 170... You know fewer regulations where they're headquartered.....But look at this way....you'll still have your wings!"
Can't you hear it now? Raj talking to one of his pilots:
Raj: "Oh, before you go I just wanted to let you know that we sold your plane and your route to Beserkistan Airways, located in some god forsaken s*it hole of a place I never even heard of....But, they say you can have a job with them. Won't guarantee you the same route and you'll make I don't know, half maybe a little more. Don't know anything about their benefit plan and instead of flying 25 hours a month you'll be flying 170... You know fewer regulations where they're headquartered.....But look at this way....you'll still have your wings!"
They won't be whiney. The won't be there period.
fedx
Extra Large Package
That article posted on the previous page has FedEx saying they are going to unify all their separate units into one. That tells me they shouldn't keep their RLA protection if they're operating as a unified company like UPS. And from what I've gathered, Express will still be around to mainly pickup/deliver with businesses. Crap deliveries out to the country will be handed off to Ground. So Express will likely be "downsized" through attrition. Not replacing people when they quit. I think Express will stick around, but will have a much smaller workforce.
Mutineer
Well-Known Member
It doesn't matter what ordinary people think about FedEx's RLA protection.
All that matters is FedEx's ability to sufficiently influence the correct people who make that decision.
If the day comes when FedEx's tidings of money and hookers is insufficient, FedEx will lose the RLA status.
Raj will be sent back to toil in a scam-call boiler room in India; and the two pink, overfed Smiths will be very displeased.
And the box-peasants throughout the realm will rejoice.
59 Dano
I just want to make friends!
Not ignoring anything, though glad to read your talking points again.
Been asking myself why I bothered researching it and posting the findings here to be discussed only for the usual crew to respond to anything and everything with their same old talking points.
59 Dano
I just want to make friends!
Why would he do that? FRED PAID OFF EVERYONE!
59 Dano
I just want to make friends!
And you'd find that the "express carrier" language had been in the bill though 1995, when the Interstate Commerce Commission requested it be removed because it was considered superfluous. And having studied this issue, you'd know that Ken Oberstar asked why Fred wanted the language returned after that one year it was gone, as Oberstar correctly noted that Express was already covered by the RLA as an air carrier without that language.
59 Dano
I just want to make friends!
SMH.
What do Express couriers do? They pick up and deliver Express packages. Why is this so hard to comprehend?
MrFedEx
Engorged Member
I think you're confusing Jim Oberstar with your hero, Ken Starr. Having studied the issue, I'm certain you haven't.
MAKAVELI
Well-Known Member
We also pick up and deliver ground packages. 4z and inject freight that comes back to us cuz Ground couldn't or didn't want to deliver it.
Isn't Express now nothing more than a freight broker? Calling around trying to find a cargo line that can pickup and fly his junk?
Read the other day that Bexos holds albeit minority interests but still significant shares in several free lance air cargo carriers. Be that as it may I wonder if he'll go along with hauling for Fat Freddy?
If this works the savings could be substantial. The layoffs and downsizing could be on a scale we haven't seen in the space for a very long time if ever. Pilots would likely have no trouble getting picked up by some other air carrier but they would likely start at the bottom of the seniority list for entry level pay. One can only imagine what they're feeling right now but nobody's going to feel bad for them because they've had it pretty good for quite awhile now,
Pressure will really be on Ground contractors to find people who aren't there to begin with or willing to work for convenience store wages much less do it with a sense of dedication and responsibility.
This seems like a spur of the moment "Hail Mary" move done so with nothing but the sheer hope that it will turn out to be the 'Immaculate Reception".
Imagine what it will be like to go from owning one of if not the largest air freighter fleets in the world to one that is totally beholding to whoever you can get to haul for you.
MAKAVELI
Well-Known Member
It truly defies common sense and logic. FedEx is basically trying to get out of the delivery business and be purely a logistics/broker business.
