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Fed Ex, A Cautionary Tale for UPS?
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<blockquote data-quote="MrFedEx" data-source="post: 2570809" data-attributes="member: 12508"><p>At Ground/HD the average wage is $12-$14 per hr. or a flat rate salary. There is no overtime for the vast majority of drivers, and no benefits whatsoever. The Express division also has low pay, with drivers starting in the $15-$17 per hour range depending on market level. No union, crap benefits, and 20+ year top-outs =low overall labor costs, although these are somewhat offset by tremendous turnover and low employee performance (compared with a UPS driver).</p><p></p><p>This saves Fred S a lot of money, which he indeed re-invests in new terminals, vehicles, and airplanes. When the Express division was making record profits, he told employees that the company couldn't afford decent raises. In the meantime, he was buying-up trucking companies, and building huge new Ground terminals.</p><p></p><p>At Ground, all costs possible are pushed to the contractor, who shills as an "independent businessperson", while holding drivers to employee standards. More profits for Smith, and more investment dollars available to buy new companies and steal market share from UPS.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 2570809, member: 12508"] At Ground/HD the average wage is $12-$14 per hr. or a flat rate salary. There is no overtime for the vast majority of drivers, and no benefits whatsoever. The Express division also has low pay, with drivers starting in the $15-$17 per hour range depending on market level. No union, crap benefits, and 20+ year top-outs =low overall labor costs, although these are somewhat offset by tremendous turnover and low employee performance (compared with a UPS driver). This saves Fred S a lot of money, which he indeed re-invests in new terminals, vehicles, and airplanes. When the Express division was making record profits, he told employees that the company couldn't afford decent raises. In the meantime, he was buying-up trucking companies, and building huge new Ground terminals. At Ground, all costs possible are pushed to the contractor, who shills as an "independent businessperson", while holding drivers to employee standards. More profits for Smith, and more investment dollars available to buy new companies and steal market share from UPS. [/QUOTE]
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Fed Ex, A Cautionary Tale for UPS?
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