Driver Annual Renewal - Financial Info
- Thread starter Dvr Alan
- Start date
Operational needs
Virescit Vulnere Virtus
Cactus
Just telling it like it is
Thanky me darlin’.
The Youngin' Of It All
Well-Known Member
Anyone been keeping up with the stock and those projections of growth forecasted from earlier this week? My guys are getting killed over here to the point where it feels like it's going to turn into mail route. I bought another truck not too long ago too because of oversize (P1000). Given the 6 day a week roll out coming in the Fall the structure is almost going to have to change in how you run this operation. It's almost like you're going to need X amount of spare drivers and trucks to sufficiently meet the requirements. My goal is to have a driver learn all the routes and rotate the work schedule where it can suffice a 6 week operation. There's no way you're going to be able to make these guys work 6 days without burning them out. I actually think peak season was easier to run 6 days a week but we'll adapt just like we did without the VRP. Change is definitely coming.
The Youngin' Of It All
Well-Known Member
BBSAM, I had a question to that. Can you explain how that that would work if we went that avenue? Who would own the route in their name legally? How do you think X would agree to that standard vs telling you to just sell or cut your number of routes? Is a third party company an option and you still own? We've already split our building and are still blown out. Given the rise in growth how much is too much for one operation to handle in your opinion?
Think about it as an investor. If you pay a million dollars for a contract and make 8% year over year, that’s doing pretty good.
A guy like me is looking for about 12%.
Now people look at spending a million dollars and immediately wonder how long it takes to make it back. That’s not the mindset of an investor. The investor looks at it as 8% ROI and looks to increase the value of the investment as well. The investor believes is sold on the idea that the value of the investment will increase over time as well as pay the 8% return. Viewed like that it can be attractive.
So in Fedex’s mind, what’s better? Paying out 8% profit margin or 12%?
How many of your drivers are going to be willing to go from a 60 hour straight time zero benefit work week to a 70 hour straight time zero benefit work week or to a split 5 day work week with a day off in the middle of the week and have to work every Saturday? Furthermore it would appear that contractors are going to have to have a lot of costly additional assets available at all times in order to meet maximum volume requirements regardless of whether or not you're running at 100% of max or spending all summer running at an average of 70%.
The American worker lives from paycheck to paycheck and it you don't have a family sustainable one for him every Friday he's going to go where he can get one. So in the end you may have to keep a lot of expensive redundancy standing by including not only trucks you may not have a lot use for but paid as full time manpower that you only use part time . All of which is required in order to maintain contractual compliance because route proficient manpower that you can call out on a moments notice could be too scarce in number to be considered an effective solution and they're not going to sit by the phone all day waiting for you to call.
Cactus
Just telling it like it is
Well said. well said.
With all these demands corporate is making with Ground, I can see the bottom falling out with the whole thing. Fred and his good ol' boys think that the company is invulnerable and the stock holders will always get everything they demand and the CEO's will be richly rewarded for making ridiculous decisions while the guys that do all the grunt work will put up with anything and everything thrown at them, it ain't gonna happen. Dream on Pittsburgh.
They'll continue to push it to see just how far they can push it, just like with Express. They'll take it a little too far then throw money at it to get it straightened out. Or not, the profits seem to be at Ground these days and they might not want to risk it like they did with us.
That’s the beauty of a revolving door work place. New people in are Tuesday through Saturday. I even have people willing to work six days a week and drivers of other contractors asking if they can run Saturday for me. It really hasn’t been that tough. I run four people on Saturdays. On days when I can only find 3, we leave the Ground stuff til Monday.
The only way I think it can be done profitably is bein 100% overlapped.
UpstateNYUPSer(Ret)
Well-Known Member
They’re covered under my work comp.
UpstateNYUPSer(Ret)
Well-Known Member
Would you pay them in cash for the day or do you pay their contractor the gross wages for the day so that the proper taxes can be withheld?
Cactus
Just telling it like it is
You make it sound like you'll have an endless supply of people willing to work hard for peanuts.
Cactus
Just telling it like it is
Oh they'll push the envelope of luck and most likely too far. Sometimes just money isn't enough to quickly repair the damage.
No. They are paid through my payroll so taxes are taken out. In Fedex terminology the driver “is associated with multiple CSP’s”. Therefore at the end of the year the driver gets multiple W-2’s.
I don’t believe that but Fedex will operate like that until they can’t anymore .
Pretty sad commentary when some if not the majority of your mules have to work 70 hours a week just to earn what most people working in the industry earn working 40.In the cluster of small communities where I live word of these types of employment terms and demands travels quickly and explains why the contractors at my station have a hard time getting anybody to work for them. Not so much in the more heavily populated area where you are but it will in the end get around and eventually you'll begin to notice a reduction in the supply of Mexican Towmotors and two legged oxen you seem to take for granted.
Similar threads
