FedEX buying back Ground Routes

grgrcr88

No It's not green grocer!
I think in Canada they have been unionizing ground. As far as I know nothing in the USA has been unionized.
 

FedExer267

Well-Known Member
What is keeping the contrator's drivers from joining a union right now? Why wait for the ISP? 267, are you and your fellow drivers unionizing? If not, how would working for an ISP be different than working for your slum-lord contractor?

bbsam I am just telling you what I heard. The only thing I can see is when you guys were actual IC's it would of been harder for drivers to unionize because many were getting a 1099 and considered sub-contractors. Now that FedEx has made you guys get Incorporated basically you have employees and I believe you have to be on the payroll as well as a employee. Maybe more and more of the drivers that dont get treated fairly are doing what they need to to insure they get properly compensated as a employee.
 

FedExer267

Well-Known Member
I also heard that some Ground facilities have gone union, but I heard it from the Teamsters. I could see Fred waiting until the contractors can't afford to pay what would be in the contracts, folding and buying every route back for pennies on the dollar and restaffing with non-union employees.

Thats a idea too. However even if he did restaff with non-union employees there would always be a threat of Ground unionizing and with the way we all see how Fred likes to compensate his employees, it would not take long for it to go union.
 

bbsam

Moderator
Staff member
bbsam I am just telling you what I heard. The only thing I can see is when you guys were actual IC's it would of been harder for drivers to unionize because many were getting a 1099 and considered sub-contractors. Now that FedEx has made you guys get Incorporated basically you have employees and I believe you have to be on the payroll as well as a employee. Maybe more and more of the drivers that dont get treated fairly are doing what they need to to insure they get properly compensated as a employee.
Just for clarification: I have been incorporated for 14 years been on that payroll, taken distributions, purchased workman's comp insurance, and witheld payroll taxes. Fedex didn't "make" all of us do these things. They are smart business moves. In fact, sometimes I think the rest of the company is finally catching up to me.
 

FedExer267

Well-Known Member
This really sounds like a bogus rumor, unless FedEx has decided the ISP Ground model will eventually be declared illegal. That's a possibility, but having Fred ever open the door to a union would seem highly unlikely. Your scenario sounds more plausible, because he just spent over $25m to keep us under his precious RLA.
He could roll it all in to one but you guys wouldn't be covered under the RLA anymore because you would be delivering more Ground then Air and basically we would be a mirror of UPS. The only way to insure FedEx never went Union would be to sell off the Ground business to another company. Thats only if there is any truth to this rumor.
 

FedExer267

Well-Known Member
Just for clarification: I have been incorporated for 14 years been on that payroll, taken distributions, purchased workman's comp insurance, and witheld payroll taxes. Fedex didn't "make" all of us do these things. They are smart business moves. In fact, sometimes I think the rest of the company is finally catching up to me.

Well there you go bbsam, you were smart enough to run your company as a company before. Yes the company is catching up to you but you have to understand that its all the shaddy Contractors that now have to step to plate and run their show as a company. These guys a probally a big reason there are so many lawsuits. Now if you were a driver for one of these guys tell me you wouldnt go union in a heartbeat just to insure you get a fair deal. The drivers that pound the pavement everyday are eventually going to get tired of getting treated like a day laborer that stands out infront of home depot. It is because of the shaddy Contractors that now basically everyone will be at risk.
If the majority of ISP business goes Union these little Corporations are going to need to make more money from FedEx just to pay their drivers. If FedEx is unwilling to kick down you will begin to see alot of ISP Corps going out of business. Now if FedEx had some sort of language in the Contract in the beginning on what is considered adequate pay for drivers you would not have alot of ticked off drivers in the buildings today. There are guys in my building that make as low as 450 a week
 

LTFedExer

Well-Known Member
If there is any truth to it.....Wouldn't it make more sense for FedEx to just roll Ground into Express and have them all covered by the RLA? Why buy out Ground routes/trucks, make them employees, and give them equal or better pay than Express in addition to being union....makes no sense to me.
It would make sense. But, then FedEx would lose its argument that we are different than UPS.
 

MrFedEx

Engorged Member
I think in Canada they have been unionizing ground. As far as I know nothing in the USA has been unionized.


Perhaps Canadian politicians cannot be bought-off as easily as those in the USA. Our pilots have been unionized (ALPA) for quite awhile.
 

FedExer267

Well-Known Member
Actually they did agree but then you had Smiths Senator hold the bill up in congress til after elections once all the Repulicans got in, we all see first hand how the bill is being put through now without the language. Amazing what money will do. If you think for one minute the Senators have are best intrest at heart you are mistaken its all about who has a wallet with loads of cash.
 

MrFedEx

Engorged Member
Actually they did agree but then you had Smiths Senator hold the bill up in congress til after elections once all the Repulicans got in, we all see first hand how the bill is being put through now without the language. Amazing what money will do. If you think for one minute the Senators have are best intrest at heart you are mistaken its all about who has a wallet with loads of cash.

The whole system of lobbyists and special interest groups is corrupt and sickening. And it isn't just Republicans who are dirty.
 

FedExer267

Well-Known Member
The whole system of lobbyists and special interest groups is corrupt and sickening. And it isn't just Republicans who are dirty.
Yes believe me I know there are very few Politicians who have are best intrest in mind, its all about special intrest and money
 

NYMGroundLH

New Member
First I would like to Say HELLO to everyone as I am new here.
The rumors are really flying around here (NYM). It is my understanding that the complete oppistie is going to happen. FedEx will one day be 100% subcontractors. This will insure fedex will get teamsters off his back. Fedex ground makes him the most profit hands down. Fedex express is slowly taking over all the USPO contract work. They are convincing the USPO why deal with all these independent haulers. Let us do it all. FedEx express is already flying a huge amount of air mail. Fred S will do ANYTHING in his power to stay non-union. As long as he has "drivers" he is at risk for the teamsters getting in.
By Makeing all his Ground contractors incorporate it draws a line. He does not pay individuals! I work with people that were not incorporated. So Fedex ground issued The checks to them personally. Gets alittle grey......
I have been a contractor for 11 years and incorporated from DAY 1. I dont know why any of these people wouldnt incorporate.
 

MrFedEx

Engorged Member
First I would like to Say HELLO to everyone as I am new here.
The rumors are really flying around here (NYM). It is my understanding that the complete oppistie is going to happen. FedEx will one day be 100% subcontractors. This will insure fedex will get teamsters off his back. Fedex ground makes him the most profit hands down. Fedex express is slowly taking over all the USPO contract work. They are convincing the USPO why deal with all these independent haulers. Let us do it all. FedEx express is already flying a huge amount of air mail. Fred S will do ANYTHING in his power to stay non-union. As long as he has "drivers" he is at risk for the teamsters getting in.
By Makeing all his Ground contractors incorporate it draws a line. He does not pay individuals! I work with people that were not incorporated. So Fedex ground issued The checks to them personally. Gets alittle grey......
I have been a contractor for 11 years and incorporated from DAY 1. I dont know why any of these people wouldnt incorporate.

FedEx Express is the most profitable company, not Ground.
 

bbsam

Moderator
Staff member
FedEx Express is the most profitable company, not Ground.

Depends on how you calculate it. Express is "by far the largest revenue generator", but if you look at profit margin, Ground may actually lead in that department.
 

MrFedEx

Engorged Member
Depends on how you calculate it. Express is "by far the largest revenue generator", but if you look at profit margin, Ground may actually lead in that department.


Express is still the most profitable, but Ground growth exceeds that of Express.
 
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