Not close 4 years ago, but we were about 4 or 5 dollars apart in the early 90's. That was on our lowest payscale, but higher payscales were closer.
And down goes freight
- Thread starter robdabanks
- Start date
But the stock options make money on the open market, not paid to them by FedEx. Look at total payroll at FedEx, the company's single biggest expense. Last time I saw figures it was about half of total revenue. How many billions is that? How much do they make in profit? Even if they gave all of the profit to couriers(what about everyone else?), it wouldn't raise us up to UPS pay. I think they can do better, and learn to live with less profit. But it might mean topping out in 15-20 years as opposed to taking forever. They simply aren't going to give all profit to employees, and have a legal, fiduciary responsibility to stockholders. That's the way corporations work whether we like it or not. We'll never get everything we want because the money just isn't there. How does UPS do it? Most of their freight is trucked and they have a much lower cost per pkg due to our cost to transport by air. It's the reason FedEx created Ground, although how they're handling that illustrates just how cutthroat and greedy they are. I in no way am praising or approving FedEx, just examining the realities of their business model transporting freight by air. Could do better? Certainly. Everything we want? It'll never happen. And anyone who thinks I'm wishy washy or two-faced is welcome to provide real world facts and figures proving otherwise.
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dezguy
Well-Known Member
I wouldn't know. At this rate, I'll be retired or dead before I see top out.
Operational needs
Virescit Vulnere Virtus
If I told you my story you would say, "WTF? That ain't right". But then it would identify me so I'll just say you are not alone.
dezguy
Well-Known Member
There's always PM's.
Cactus
Just telling it like it is
I'm not gonna budge from what I've said earlier. If you disagree that's fine and that's part of what discussions are about.
But if UPS can still make millions if not billions, then FedEx Express is very poorly managed in comparison. And by the way UPS owns and flies planes too and they don't make the extra gravy by flying around mail for the postal service. Oh there's money in Memphis. Don't let any managers tell 'ya differently.
UpstateNYUPSer(Ret)
Well-Known Member
I believe we also fly mail for the Post Office.
It used to be that we also had a charter service where we would convert the planes to carry passengers on the weekends.
It used to be that we also had a charter service where we would convert the planes to carry passengers on the weekends.
MrFedEx
Engorged Member
You and I will always disagree about FedEx, but we can both agree that it is very poorly managed in comparison to UPS. Even with all his freebies, Fred has trouble with the profit margin. Of course, he and his upper crust buddies aren't laughing all the way to the bank, right?
barnyard
KTM rider
I forgot about the different scales, depending on region. I would think that my region is a low cost of living region and the scale reflects that. I worked a route for 3 years and the courier there was $3/hour less than me when I started. We agreed that I worked quite a bit harder for the dough than he did.
barnyard
KTM rider
Correct and congress is pressuring USPS to divert much of that volume to the rails. Which is bizarre. UPS is pulling trailers off the trains and someone thinks it will be a good idea for USPS to use rails.
We'll see how long that lasts.
Plus your drivers start at a decent amount and reach very good pay much faster. Doesn't matter that topout where I'm at is about $25hr. I'm at $16 and will never get close to the local UPS drivers in pay. I'd be lucky to be at $25hr in 20 years, and it won't be worth then anymore than my $16 is now.
But you have to understand how stock options work. Upper management is given the option to buy company stock at discounted prices within a certain time frame. The reasoning is that they'll do all possible to push the price of the stock up on the stock exchange, making it more desirable to buy. Then they exercise their options before expiration to sell on the market(or choose to keep it if they want) to make as high a profit as possible, thus not only benefitting them but all stockholders. The problem is that major corporations have developed an incestuous relationship with the big funds on Wall Street who use our 401k money to buy the stock that makes our exec's millions. But that money comes from Wall Street, the millions you see our exec's making does not come from corporate revenue. My argument is that exec's should be content with very generous salaries and stop hammering employees to reap millions from stock options. But that's not the way the world works. Those in a position to make that kind of money convince themselves that they deserve it and turn a blind eye to the struggles of their employees rather than do the right thing. As far as management ability goes UPS leases most of it's planes and has a much smaller percentage of the overnight market. Most of it's freight is trucked and the only way FedEx will have similar costs is to do the same. As long as we are the country's largest overnight service using aircraft to deliver pkgs our costs will be much higher and in no way will we have the money for UPS pay and benefits. Ultimately it has to come out of the profit and FedEx is doing everything possible to increase that profit which means that they have no intent to pay better but also means if it was just a matter of better management then they'd have fired current managers long ago as profit, and cashing in stock options at higher stock prices, is everything to these people.
overflowed
Well-Known Member
I will be long gone, however in the market I'm seeing they will have to bump all of your pay quite a bit just to keep the shiiiittiest couriers we have. You make the bed you sleep on.
MAKAVELI
Well-Known Member
It looks like East Philly didn't back down to old Fred! Congratulations East Philly!
http://www.changefedextowin.org/?m=1
http://www.changefedextowin.org/?m=1
overflowed
Well-Known Member
Now that there is interesting. Congrats!
DontThrowPackages
Well-Known Member
I guess these guys aren't walking around with purple tongues
MrFedEx
Engorged Member
I guess these guys aren't walking around with purple tongues
Or Purple Buttholes. Bravo Zulu, and just say NO to the BBQ.
'Lord Brown's bidding'
Well-Known Member
I talked to one of the Freight drivers on Friday; he was not happy at all. Kinda believes that the company is not going to give up anything in negotiations, and they may in fact "punish" them with an inferior contract.
The new shop in Croydon still has an uphill battle it faces, and not just from FedEx.
The new shop in Croydon still has an uphill battle it faces, and not just from FedEx.
