Lol. No.
FedEx contractor revolt?
- Thread starter CookiePuss
- Start date
59 Dano
I just want to make friends!
LOL, if only. Fred believes in Network 2.0 as much as Raj does. Raj was handpicked to replace Fred because he believes in it and is perceived to be the best one able to make it work.
Anyone who thinks Fred was going to throw anyone to the wolves is just lost.
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59 Dano
I just want to make friends!
If we could arrange it, I'd take out a 2nd mortgage on the house, max out as many credit cards as humanly possible, and do anything else that's legal to obtain money to bet you that won't be the case.
From what I've heard (admittedly it's hearsay) some contractors are going to have the opportunity to make out like bandits. Especially in integrated buildings.
59 Dano
I just want to make friends!
I'm loving this. 500 bacha posts with bbsam and IWBF correcting each and every one, along with some laughable Express input such as Fred threw Raj to the wolves.
It will be fine
Well-Known Member
Bankrupt contractors can’t fall in line with anything. That’s what FedEx is facing. Spencer has the paper trail of hundreds of contractors to prove it.
Tells you how seriously Wall Street is taking this latest little dust up.....The stock closed today unchanged from yesterdays close.....yawn.
Remember this stock? How much money was lost by people in love with the name?
They don't care. Trucking has always been a "here today, gone tomorrow" business with a high bankruptcy rate ever since the beginning. And when one carrier went under.....two or three or more were right there to take over. And this situation is no different.
Gone fishin
Well-Known Member
I’m just telling you the only thing that makes sense. When i asked our senior, he said that he thought the transition was inevitable. You have to make adjustments. Nothing stays the same
If Fedex is a corrupt as Enron if such a thing is possible then there might be a similarity between the two that could serve to foretell the fate of FDX. But, I don't see one especially when you stop to look at who the largest holders of FDX stock are. Target price still 297.
59 Dano
I just want to make friends!
Bacha ever since his first post here: "The model is unsustainable. There aren't enough contractors and/or drivers."
Bacha above: "If one fails, there are 2 or 3 right there to take over."
And there you go. That’s what I mean when I say this isn’t about “bringing FedEx to their knees.”
But FedEx has played fast and loose with the balance sheets. Likely millions in contractor financed company blunders. Fuel supplement padding the profits. Devaluation of contractor businesses.
I don’t know that I’d call it corrupt but for the company not to address legitimate financial and structural problems with the model is at least terrible business. And for investors to ignore the implosion a key core component of the business they invest in is ludicrous.
So the stock price doesn’t drop. Why? Because investors aren’t paying attention? Or because they believe the company will address and fix the problem? What investors can’t do is ignore it and buy the company BS that everything is fine. If they do, and FedEx doesn’t address the issues, there’s no reason to believe FedEx couldn’t face a severe decline in value.
Lol. If you ask folks in Milwaukee, Madison, Rockford, and Rock Island how that idea’s going you might change your mind. Who wants to run a trucking company that loses money?
59 Dano
I just want to make friends!
Ditching the contractor model includes taking on thousands of new employees, insane amounts of additional risk and liability, and millions per year in additional admin costs.
For example, let's take 1000 FT Ground guys and make them FT FedEx employees. Their pay is going to be over $35 million. Plus benefits. Plus Social Security contributions and WC insurance. Plus other related expenses.
It may make financial sense to have hourly FedEx employees take Ground packages in certain circumstances. It makes WAY more financial sense to have contractors take Express packages.
It has always been an easy business to get into and an easy business to fall out of because it has historically been a slim margin pennies business and Fat's and his lap dog Sahib are going to see how thin a a margin can you guys run on and still be there the following morning. Big or small they come and go and the freight still keeps on moving. If there is a recession there will be enough surplus capacity readily available to handle just about anything that could happen at Fat Freddy's barn.
Gone fishin
Well-Known Member
So UPS is a failing company ?
Star B
White Lightening
Airborne Express/DHL domestic, contractors, failed.
Who else has succeeded in the overnight/urgent needs shipping department using contractors in the B2C market? The only one that comes to mind is Amazon and even then they still don't cover all the area that FXE-domestically does. Plus, they are still young when it comes to companies in this field.
You might finally be getting it. Milwaukee and Rockford have been a mess for years. And sure, people show up and service levels are terrible and getting worse.
If that’s the level of commitment Raj can live with, then no reason to change at all and the model will continue to implode.
Star B
White Lightening
I'm thinking Raj is hoping for a massive depression/recession and people BEGGING to work for cheap-labor.
and if I'm wrong with my terminology, sorry, but I'm sure you all know what I'm getting at.
