Express handing resi deliveries to Ground

SmithBarney

Well-Known Member
The new plan allows for Express to fly this package, but Ground is still gonna deliver it. That's why it's called "Last Mile" Optimization.
yes I know... read my post, i was saying a better choice for fedex would have been to integrate this "savings" on the origin side.. the way it currently sits, it might not end well and implementation is going to have real problems in some areas(if possible at all)
 

bbsam

Moderator
Staff member
Do you operate in the manner I just described?
Absolutely. Not sure why any contractor wouldn’t.

Honestly, I wish the rules were different. I posted elsewhere that a candidate ran on getting 50% of workers in unions, fix Obamacare and restructure social security, he or she would be branded a socialist.
Nothing about that should be hard for a majority of Americans to get behind, but something has brain banged the American psyche.
 

It will be fine

Well-Known Member
It's not cleverness it's fact and a fact you find embarrassing. If the tenant farmer didn't turn enough yield off the plantation owners acres away he went. Today as a modern day sharecropper if the guy on your truck doesn't turn enough stops per hour or per day then away he goes. And once he reaches the point where he's so physically beaten up by the job that he can't keep up the the quotas he's simply disposed of and with no healthcare or pension he ends up becoming dependent on charities and state sponsored public assistance programs.

If this is your idea of "running a business" I'm glad I'm not part of it.

And Express guys take a good look. This is the guy who is in fact going take your job from you.
This is nonsensical even for you. You’re complaining that if a driver can’t meet standards they’re fired. What’s the alternative? Have no productivity standards and employ anyone that breathes? You think I’m a bad person for having the expectation that my employees do their job, it’s a very strange worldview.
 

Operational needs

Virescit Vulnere Virtus
This is nonsensical even for you. You’re complaining that if a driver can’t meet standards they’re fired. What’s the alternative? Have no productivity standards and employ anyone that breathes? You think I’m a bad person for having the expectation that my employees do their job, it’s a very strange worldview.
Oh come on! Aren’t you running a charity?
 

bacha29

Well-Known Member
Absolutely. Not sure why any contractor wouldn’t.

Honestly, I wish the rules were different. I posted elsewhere that a candidate ran on getting 50% of workers in unions, fix Obamacare and restructure social security, he or she would be branded a socialist.
Nothing about that should be hard for a majority of Americans to get behind, but something has brain banged the American psyche.
Oh, so you want government to make it all right and give you a clear conscience? Not going to happen . You chose to get into this.
For years Fat Freddy did a good job of covering up the dirty little secret called Fedex Ground. Trucks all looked the same and guys in them wore the same looking uniforms conveying to the public the lie that everyone was a company employee driving a company owned truck.
While eventually they had to give in and allow a disclaimer to be posted but they decided it's dimensions what it would say and where it would be posted which happened to be the place that got covered with the most dirt and mud.
The good point about Friday's announcement is that the media is picking up on it and soon they will find out the unpleasant motives behind it.
Fedex Express employees earning good wages and a company funded pension disability and healthcare plan are going to be systematically eliminated replaced by contractor employed drivers earning half the wages and either they ask their spouses employer to pay the health insurance premiums in order that they can have coverage or they have to go into the exchanges and try to get some coverage with publicly subsidized premiums and if they are lucky enough to be living in a participating state perhaps the expanded Medicaid program.

And when they are so beat up that they can't keep up they are simply handed off to another employer with the expectation that he will accept the growing health risks and give the guy a job.....Very few will do that.

So now what's the guy left with? Apply for SSD . That's going to be about it. Ever bother to read the Social Security "Blue Book" If so you would plainly see why 74% of all first time SSD claims are denied you've got a 1 in 10 chance of being granted a reconsideration and even if you granted a hearing by an administrative law judge the average waiting time is 21 months.

This is what's coming and what many will have to look forward to.......basically nothing.
 

McFeely

Huge Member
yes I know... read my post, i was saying a better choice for fedex would have been to integrate this "savings" on the origin side.. the way it currently sits, it might not end well and implementation is going to have real problems in some areas(if possible at all)

I'm sure they will do this on the origin side of things where feasible. A Florida-to-Georgia package can make it in 2 days, so I don't see why they wouldn't use Ground for the ride and the delivery. That may also be in the works with the new ASTRA coding.

But in your cases you stated a Ground driver would deliver the Georgia package and an Express driver would deliver the California package. The company wants $15/hour Ground drivers, not $25/hr Express drivers so they're going to increase the use of their contractor model. Actually, the shareholders want that and the C suite is focusing on that.
 

bbsam

Moderator
Staff member
Oh, so you want government to make it all right and give you a clear conscience? Not going to happen . You chose to get into this.
For years Fat Freddy did a good job of covering up the dirty little secret called Fedex Ground. Trucks all looked the same and guys in them wore the same looking uniforms conveying to the public the lie that everyone was a company employee driving a company owned truck.
While eventually they had to give in and allow a disclaimer to be posted but they decided it's dimensions what it would say and where it would be posted which happened to be the place that got covered with the most dirt and mud.
The good point about Friday's announcement is that the media is picking up on it and soon they will find out the unpleasant motives behind it.
Fedex Express employees earning good wages and a company funded pension disability and healthcare plan are going to be systematically eliminated replaced by contractor employed drivers earning half the wages and either they ask their spouses employer to pay the health insurance premiums in order that they can have coverage or they have to go into the exchanges and try to get some coverage with publicly subsidized premiums and if they are lucky enough to be living in a participating state perhaps the expanded Medicaid program.

And when they are so beat up that they can't keep up they are simply handed off to another employer with the expectation that he will accept the growing health risks and give the guy a job.....Very few will do that.

So now what's the guy left with? Apply for SSD . That's going to be about it. Ever bother to read the Social Security "Blue Book" If so you would plainly see why 74% of all first time SSD claims are denied you've got a 1 in 10 chance of being granted a reconsideration and even if you granted a hearing by an administrative law judge the average waiting time is 21 months.

This is what's coming and what many will have to look forward to.......basically nothing.
Oh no. You misunderstand me. I have a clear conscience.
 

bacha29

Well-Known Member
This is nonsensical even for you. You’re complaining that if a driver can’t meet standards they’re fired. What’s the alternative? Have no productivity standards and employ anyone that breathes? You think I’m a bad person for having the expectation that my employees do their job, it’s a very strange worldview.
Right, matching the production of a UPS driver for half the compensation and zero benefits and you still expect people to hold you in high regard? LMFAO.
 

bacha29

Well-Known Member
I'm sure they will do this on the origin side of things where feasible. A Florida-to-Georgia package can make it in 2 days, so I don't see why they wouldn't use Ground for the ride and the delivery. That may also be in the works with the new ASTRA coding.

But in your cases you stated a Ground driver would deliver the Georgia package and an Express driver would deliver the California package. The company wants $15/hour Ground drivers, not $25/hr Express drivers so they're going to increase the use of their contractor model. Actually, the shareholders want that and the C suite is focusing on that.
And here's the funny part Under the USMCA the minimum wage for auto workers in Mexico making auto parts for the US market will be $16 and hour.
The package volume will go to wherever it can be handled the cheapest but until the robots take over it will still require hoards of dedicated and productive manpower Therefore it's just a matter of seeing how low the pay scale will go until nobody will take the job. And in his interview with Bloomberg Fat Freddy made it clear that he's going to find out how low he can get it go. He's not going to be the one to suffer. The ones that are going to suffer are those... what's he call them "entrepreneurs"?
 

Star B

White Lightening
My drivers get benefits. Your talking points are old and uninformed.
Good for you, but in our area most of the contractors don't get benefits. I talk to a few drivers while on area and they don't get anything and they are on the pay-per-day model.

I think it varies per market and region.
 

It will be fine

Well-Known Member
Good for you, but in our area most of the contractors don't get benefits. I talk to a few drivers while on area and they don't get anything and they are on the pay-per-day model.

I think it varies per market and region.
It varies pretty dramatically within terminals. Larger contractors can offer more and get by with slimmer margins per truck or driver. All the current changes are leading to larger contractors. I would expect competition to drive compensation upwards for Ground drivers provided productivity increases as well.
 

Star B

White Lightening
Well I get where you’re coming from but it’s not your freight. WAGN and welcome.
my freight = Fedex EXPRESS freight. Not "FedEx" freight, not "FedEx Ground" freight. The customer SPECIFICALLY stated they wanted that service with the Express company, NOT with Ground. If they wanted GROUND service, they would have chosen the GROUND company. If Ground wanted to give Express freight, they could because we could be a "contractor" with FXG, just like you.

There is no way to go the other way around. We don't contract with other companies when we service the area ourselves.

That's where the lawyers are going to circle. It's bait and switch, technically.

If FedEx sold all shipping products as pure "FedEx" shipments then I'd have no leg to stand on. However, they paid for "FedEx Express", not "FedEx Ground".
 

bbsam

Moderator
Staff member
my freight = Fedex EXPRESS freight. Not "FedEx" freight, not "FedEx Ground" freight. The customer SPECIFICALLY stated they wanted that service with the Express company, NOT with Ground. If they wanted GROUND service, they would have chosen the GROUND company. If Ground wanted to give Express freight, they could because we could be a "contractor" with FXG, just like you.

There is no way to go the other way around. We don't contract with other companies when we service the area ourselves.

That's where the lawyers are going to circle. It's bait and switch, technically.

If FedEx sold all shipping products as pure "FedEx" shipments then I'd have no leg to stand on. However, they paid for "FedEx Express", not "FedEx Ground".
I think you’ll be surprised at how few customers actually realize there’s a difference.
 
Top