Express handing resi deliveries to Ground

[It will be fine]

I’m 25 yrs deep and I’ve been feeling likes it’s a sinking ship. I’ve watched a lot of people use FedEx express to get there CDL and head over to Walmart, ups, FedEx freight. This will only make it worse for both sides to keep good people here. I hope ground is some what successful. The traditional pension I earned kinda depends on it. When it does completely sink I’ll step off to another job.

Doesn’t answer my question. Why not run a Ground contracting company? It’s not real according to you. Just sign some papers and collect the money.

 

[yadig]

You guys keep claiming I don’t run a company and everything is done for me. If it was that easy why don’t you all do it? Six figure income that requires no work or skill, sounds like a no brainer.

I’m thinking bout it.. I’m waiting to see how this all goes. I hv a buddy in Memphis just quit and buy some semi trucks and get into ground. I’m gonna keep in touch and see how he does. I’m like u, fat Freddy, it’s all about the duckies!!

 

[It will be fine]

Whether my area does or does not have service is irrelevant. But what I can assure you is that whoever's doing it unlike yourself they don't try to portray themselves as being these great independent business people . They know that the constraints placed on them by their one and only customer and the captive nature of their unilaterally drafted and implemented contract renders them so powerless that doesn't allow them to meet the criteria need to qualify one's self as an independent businessman .

You said the only reason contractors leave is they ran out of labor. So that’s obviously not true since your area is still being serviced.

 

[bacha29]

You said the only reason contractors leave is they ran out of labor. So that’s obviously not true since your area is still being serviced.

Then what in your opinion was responsible for the 2019 peak collapse? Not enough "managers"? Then again they're might not have been because contractor employed "managers" is the term used to describe individuals who drive routes everyday just not the same one everyday.

 

[It will be fine]

Then what in your opinion was responsible for the 2019 peak collapse? Not enough "managers"? Then again they're might not have been because contractor employed "managers" is the term used to describe individuals who drive routes everyday just not the same one everyday.

Volume was up 40% year over year from 2018. Many contractors were under prepared for that increase. Why do you have managers in quotes?

 

[Maui]

Idk why it posted twice. But as you can see it’s only a matter of time. I wasn’t talking about your employees, I’m talking about you. You are about to have tremendous pressure placed on you. Why do U think there is a 50% turn over in management at express? Your bout to find out. I wonder how your “employees” are going to react to strict start times, break violations, time commits. You will hv to start giving out warning letters and going on check rides. Lol. I wonder if those employees are gonna stay motivated for them peanuts your handing out. I’m 25 yr RTD and Really looking forward to this dog and pony show.

The only time commit they will have is 2000. If routes are out that late there’s already a problem.

The ISP model was litigated in Kelly v FedEx Ground. It settled several cases. It was the last legal hurdle for FedEx. Existing law supports the ISP model. New laws could change that, but they would be litigated as well.

FXG will be a contract carrier for FXE. Express will be a Ground customer.

I don’t understand all the doom and gloom.

 

[59 Dano]

Ground does have a high turnover but would be much higher if Express had Union representation. I can't think of a single company that has 2 divisions, one union one not and doing the same job.

Then it stands to reason that you can't think of a single reason why it would cause an increase in turnover.

 

[Artee]

I’m 25 yrs deep and I’ve been feeling likes it’s a sinking ship.

You wanna see the Express ship sink, better hope the Post Office re-ups their contract when it expires. We have some flights into our ramp that is mostly mail. Though with ground paying us to fly more of their freight now, that will take up some capacity.

 

[Fred's Myth]

The only time commit they will have is 2000. If routes are out that late there’s already a problem.

The ISP model was litigated in Kelly v FedEx Ground. It settled several cases. It was the last legal hurdle for FedEx. Existing law supports the ISP model. New laws could change that, but they would be litigated as well.

FXG will be a contract carrier for FXE. Express will be a Ground customer.

I don’t understand all the doom and gloom.

The reason Express is governed by the Railway Act is because a disruption (strike) would be detrimental to the national interest. If all FXE has to do is hand off freight to FXG, there is no longer a need for the RLA protection. FXE would rightfully be placed under NLRB, allowing local unionization.
However, it may be too little, too late.

 

[59 Dano]

That may be the case for the auto industry because they have to remain competitive for skilled workers.

"Skilled workers"? I live near a Big Three auto plant and there are two other plants nearby that do some assembly of parts and then send them over to the main plant for final assembly on the finished product. Those jobs don't require any more skill than any other entry level factory work. The Toyota plant in northern Kentucky is a different story but a unionized auto assembly job doesn't require much.

 

[59 Dano]

You’re wrong , I literally get complaints every day

For each person who complains there are 10 who like the Ground guy because he's a nice guy and another 20 who don't care. Then there are the resi customers who don't know any different because the pkg gets delivered to their house while they're at work anyway.

For the record, I'm Express and it would be great for my opco if customers were in an uproar over Ground. They aren't. People will settle for less professionalism if the price is right.

 

[59 Dano]

I'd rather make $ on my day job while having time to do what I want in my spare time including side hustles.

I'd rather not need a side hustle.

 

[bacha29]

Volume was up 40% year over year from 2018. Many contractors were under prepared for that increase. Why do you have managers in quotes?

Because that's what you call them. But the reality is that they are simply drivers without dedicated daily routes of their own. BTW The inability to secure additional labor doesn't mean they were unprepared. You can throw out all the baited lines you want but if the fish aren't biting period you will go back to the dock empty handed. And in the case of contractors you only have just so much bait to put on the hook and but if the fish aren't impressed by it there's nothing more that fisherman can do.

 

[It will be fine]

Because that's what you call them. But the reality is that they are simply drivers without dedicated daily routes of their own. BTW The inability to secure additional labor doesn't mean they were unprepared. You can throw out all the baited lines you want but if the fish aren't biting period you will go back to the dock empty handed. And in the case of contractors you only have just so much bait to put on the hook and but if the fish aren't impressed by it there's nothing more that fisherman can do.

Those are swing drivers. Managers are different.

 

[59 Dano]

IWhy do U think there is a 50% turn over in management at express?

Because it's a stat that you pulled out of your rear end. Goes well with the "Divorce rates among managers are 2x/3x/4x the rates of everyone else" stat that someone else pulled out of his rear end.

Your bout to find out. I wonder how your “employees” are going to react to strict start times, break violations, time commits.

The time commits are 8 PM.

 

[59 Dano]

The reason Express is governed by the Railway Act is because a disruption (strike) would be detrimental to the national interest. If all FXE has to do is hand off freight to FXG, there is no longer a need for the RLA protection. FXE would rightfully be placed under NLRB, allowing local unionization.
However, it may be too little, too late.

It doesn't affect the RLA argument one way or the other. The largest threat, from the perspective of unions and strikes, is MEMH. MEMH could unionize, go on strike, and it would devastate our ability to function.

 

[Fred's Myth]

It doesn't affect the RLA argument one way or the other. The largest threat, from the perspective of unions and strikes, is MEMH. MEMH could unionize, go on strike, and it would devastate our ability to function.

I disagree.

“Congress amended the RLA in 1936 to include coverage of air carriers. [5] The federal government's interest in the regulation of carrier labor disputes derives from its recognition that interstate commerce relies on the transportation industry and that any disruption of that industry resulting from labor unrest may have devastating effects on both the industry itself and the national economy.”

Since FXE will now be able to transfer freight to FXG, the potential for devastation is mitigated.

Since the justification to include FXE as an airline under RLA will no longer exist, it logically should be placed under the NLRB like UPS is.

 

[FedGT]

I don’t have a dog in this fight anymore but a lot of the opposing side of the ground argument is ridiculous. If I still had my contracts I would be more enthusiastic now than the last decade. Incredible increase in stop density while bringing down the avg package size immensely.
The commit time argument is a poor argument. The law states that X can’t tell you how to run your route not that a promised service can’t be delivered by a certain time. I can still run the route however I feel as long as the packages get delivered by the time they need to be just like scheduled pickups.
At this time Ground is looking stronger than ever and with the increased employment and less OS per truck it is a more feasible model............... how long will it be before X starts dropping any and all $ per stop and per package price, who knows (probably next agreement) sighting more stop density so less cost, but at the moment that it sits, very bullish signs for Ground.

 

[It will be fine]

I disagree.

“Congress amended the RLA in 1936 to include coverage of air carriers. [5] The federal government's interest in the regulation of carrier labor disputes derives from its recognition that interstate commerce relies on the transportation industry and that any disruption of that industry resulting from labor unrest may have devastating effects on both the industry itself and the national economy.”

Since FXE will now be able to transfer freight to FXG, the potential for devastation is mitigated.

Since the justification to include FXE as an airline under RLA will no longer exist, it logically should be placed under the NLRB like UPS is.

I think they’ll keep the true Express volume in house. They still need to operate the airline to maintain express service. That’s the part that puts them under the RLA. I doubt how final mile deliveries are made will make much difference. I expect further integration will occur over the next few years.

 

[It will be fine]

I don’t have a dog in this fight anymore but a lot of the opposing side of the ground argument is ridiculous. If I still had my contracts I would be more enthusiastic now than the last decade. Incredible increase in stop density while bringing down the avg package size immensely.
The commit time argument is a poor argument. The law states that X can’t tell you how to run your route not that a promised service can’t be delivered by a certain time. I can still run the route however I feel as long as the packages get delivered by the time they need to be just like scheduled pickups.
At this time Ground is looking stronger than ever and with the increased employment and less OS per truck it is a more feasible model............... how long will it be before X starts dropping any and all $ per stop and per package price, who knows (probably next agreement) sighting more stop density so less cost, but at the moment that it sits, very bullish signs for Ground.

E-commerce rates are 40-60% less than HD rates. Ground rates come down 5-10% in the new agreements as well. They’ll keep squeezing rates to help force out smaller operations that can’t survive on the shrinking margins.