FedEx contractor revolt?

[bbsam]

I'm not upset. I feel bad about the fact that many of you passed up the opportunity to get out earlier and under the best possible terms. Many of you expected to be able to live fairly securely on the proceeds from your contract sale. Well, you still might but the principal upon whom the retirement income will be generated is likely to be quite a bit smaller.

In one sense the current situation should come as no surprise given the way Dan Sullivan fought bitterly in an effort to keep from having to grant goodwill and proprietary rights to contractors but grudgingly had to in the end or face the prospect of a DOJ/IRS lawsuit that could have permanently shutdown the entire operation bringing an abrupt end to his little scheme.

One thing I’ve learned in the past six months is how to relax with this setup. Things have changed significantly. For the better or worse I’m not even sure. I feel like I’m more on the sidelines watching it play out than any sense of despair that you seem to think I should feel.

 

[thedownhillEXPRESS]

Oh poor baby! You wanted in there badly enough and now you're hurting just as bad as other contractors. Me, little nobody contractor told you guys 3 years ago that Ground contracting was never going to get any better than it was at that point. The generous settlements and cash being tossed around was starting to dry up. It was stand and deliver or get out under terms that were never going to get any more favorable than they were at that point.

Do you think that Sahib Raj and Fat Freddy is going to pay any attention to Sherman here? His dissertation had only one word in it that mattered.....SMALL! . As in both small and powerless. And he talks about the operating agreement but doesn't he know that there's not one single term or condition in that operating agreement that's binding upon Fedex?

He sounds like one of those late night televangelists on TV trying to hang a quilt trip on the 4 insomniacs actually watching for not sending him enough money to pay for his private jet. And his so called "win-win"? Trouble is it wasn't a win for the people who are burdened with the task of physically moving Fat's and Raj's junk to where it has to go . And that will be their undoing.

Patton feels bad for being the sleazy salesman. Now the pyramid scheme has run its course and he’s a crybaby.

 

[thedownhillEXPRESS]

My money is on the contractor side winning out. FedEx needs them more then they need FedEx.
The real question is are the company executives too proud to admit this is the case. Will they let the company burn down before they admit to being beaten by a bunch of contractors?

I disagree. I used to think Express would be more likely to gradually get absorbed by Ground but now see it differently.
Ground is imploding and they don’t have control over the contractors anymore. Here at Express people get reamed at for the wearing the wrong color undershirt or socks while at Ground they drive around without shirts. It’s like Lord of the Flys. The contractors will be offered new territory in Eastern Ukraine or a swing driver spot anywhere west of the Mississippi as a parting gift.
FedEx wants control and the contractor model doesn’t offer that any longer.

 

[Gone fishin]

I disagree. I used to think Express would be more likely to gradually get absorbed by Ground but now see it differently.
Ground is imploding and they don’t have control over the contractors anymore. Here at Express people get reamed at for the wearing the wrong color undershirt or socks while at Ground they drive around without shirts. It’s like Lord of the Flys. The contractors will be offered new territory in Eastern Ukraine or a swing driver spot anywhere west of the Mississippi as a parting gift.
FedEx wants control and the contractor model doesn’t offer that any longer.

Won’t be a Ground or contractors. It’s run it’s course. All employees of fedex in the near future

 

[yadig]

Won’t be a Ground or contractors. It’s run it’s course. All employees of fedex in the near future

I don’t think so, raj will throw just enough crumbs to keep them around. Ground is the future of the company and express is slowly working towards it. It’s the cheap labor that FedEx loves and a few contractors upset will be replaced. I’m curios how this year will evolve.

 

[Gone fishin]

I don’t think so, raj will throw just enough crumbs to keep them around. Ground is the future of the company and express is slowly working towards it. It’s the cheap labor that FedEx loves and a few contractors upset will be replaced. I’m curios how this year will evolve.

Can’t be putting 2 and 3 trucks going to the same area. Pay 35 dollars to someone and work one area UPS style. It’s proven to work

 

[bacha29]

One thing I’ve learned in the past six months is how to relax with this setup. Things have changed significantly. For the better or worse I’m not even sure. I feel like I’m more on the sidelines watching it play out than any sense of despair that you seem to think I should feel.

It would appear that what you're saying is that this latest little insurrection like all the others will be over in a couple of days. I concur.
I do think it's safe to say that this will be the last time Spencer Patton goes cocking off to Fat Freddy and gets away with it.

 

[bbsam]

It would appear that what you're saying is that this latest little insurrection like all the others will be over in a couple of days. I concur.
I do think it's safe to say that this will be the last time Spencer Patton goes cocking off to Fat Freddy and gets away with it.

No. I’m saying it’s the same one that’s even going on and the bottom is ready to fall.

When I say that I’m beyond caring whether the model fails or succeeds, I am 100% honest about that. Contractors have been screaming the alarm for months and FedEx has doubled down on their insanity. Sometimes people insist on failing miserably before deciding to do something different.

 

[yadig]

No. I’m saying it’s the same one that’s even going on and the bottom is ready to fall.

When I say that I’m beyond caring whether the model fails or succeeds, I am 100% honest about that. Contractors have been screaming the alarm for months and FedEx has doubled down on their insanity. Sometimes people insist on failing miserably before deciding to do something different.

It just don’t make sense

 

[bbsam]

 

[It will be fine]

View attachment 392855

Driver not in uniform throwing a box. Picture checks outs.

 

[yadig]

I may have to leave express, become a contractor, buy some ragged trucks to get a union! I’ve been hoping for years express would go union and now you guys at ground might get one! Good on ya

 

[zeev]

This AM FDX is trading ABOVE both it's 50 day and 200 day moving average. Of 32 analysts who track FDX stock 23 of them have given it a "buy" or "strong buy" rating with an average target price of $290. Even the other 9 have given it a "hold" rating.

So what does that tell you? It tells you that a handful of contractors parking their trucks for a day or two will not have any meaningful impact on FXG operations. I told you guys 3 years ago not to hang around too long trying to get every last possible dime you can get for your routes but you wouldn't listen. So now it's either find somebody willing buy your routes for a "take it off your hands" price or soldier on until you simply run out of cash and the old woman is threatening to leave you if she hasn't already done so.

It most definitely will not get any better for you and getting even worse is almost guaranteed but you have nobody to blame but yourselves.

Analysts are often paid stooges for legacy corporations to keep the price up , they push old dinosaurs while ignoring Facebook,Google, and Amazon. Example Tesla is routinely ridiculed by analysts who’s actual track record is atrocious. Tesla will be bigger than the rest of the tech giants combined. Now is the time for Ground to move with Fdx trying to combine delivery systems and a shortage of labor and vehicles puts Freddy in a bind.

 

[yadig]

Driver not in uniform throwing a box. Picture checks outs.

True, but look at the $ fat Freddy is raking in

 

[yadig]

Analysts are often paid stooges for legacy corporations to keep the price up , they push old dinosaurs while ignoring Facebook,Google, and Amazon. Example Tesla is routinely ridiculed by analysts who’s actual track record is atrocious. Tesla will be bigger than the rest of the tech giants combined. Now is the time for Ground to move with Fdx trying to combine delivery systems and a shortage of labor and vehicles puts Freddy in a bind.

I absolutely love it!

 

[bacha29]

View attachment 392855

We now see the impact Chicken Little Patton's "the sky is falling"! proclamation has had today.....The stock is down a buck. yep, one whole dollar.
Fat Freddy got up this AM, went out and looked up and saw that the sky isn't falling. Went back in had his breakfast of grits and eggs comfortable in the knowledge that while Spencer Patton owns Route Consultants.....he owns Spencer Patton.

A comical little mess indeed.

 

[yadig]

I was hoping dano would chime in and enlighten us. What’s the company’s next move dano?

 

[bbsam]

We now see the impact Chicken Little Patton's "the sky is falling"! proclamation has had today.....The stock is down a buck. yep, one whole dollar.
Fat Freddy got up this AM, went out and looked up and saw that the sky isn't falling. Went back in had his breakfast of grits and eggs comfortable in the knowledge that while Spencer Patton owns Route Consultants.....he owns Spencer Patton.

A comical little mess indeed.

You’re so slow. Raj’s next move is to concede.

They’ve held out for months, refused to increase fuel supplement and berated contractors over and over for not “being efficient enough.”

In the meantime they’ve pushed out new lower rate contracts.

Do you understand? FedEx can now concede and effectively get the rates that have throttled the contractors for the last 8 months all while quieting the rebellion.

Side note: I don’t think Patton would do anything like this before signaling Pittsburgh and Memphis first and getting a favorable reply. I wouldn’t say that they are colluding, but I would believe there is communication going on.

We have a short meeting tomorrow morning. Thinking this topic may come up.

 

[bbsam]

We now see the impact Chicken Little Patton's "the sky is falling"! proclamation has had today.....The stock is down a buck. yep, one whole dollar.
Fat Freddy got up this AM, went out and looked up and saw that the sky isn't falling. Went back in had his breakfast of grits and eggs comfortable in the knowledge that while Spencer Patton owns Route Consultants.....he owns Spencer Patton.

A comical little mess indeed.

Why are you so fixated on stock price?

 

[fedx]

Nah. Spencer is likely in a good position. Big enough to be able to walk away and big enough that FedEx needs him around. When the Spencer Pattons fold up shop, the game as we know it is over

Nah. Spencer is likely in a good position. Big enough to be able to walk away and big enough that FedEx needs him around. When the Spencer Pattons fold up shop, the game as we know it is over.

I think what you're saying is Spencer has leverage. Maybe he does, maybe he doesn't. I'm going to go with he doesn't have nearly as much leverage as does multibillion dollar FedEx. I think we'll soon find out how much leverage he has. FedEx will likely make an example out of him so other contractors fall in line with their demands.