FedEx contractor revolt?
- Thread starter CookiePuss
- Start date
'What A Fool Believes".....The Doobie Brothers.
Coldworld
60 months and counting
Anyone know how many routes that this kid has to make him number 1 in the country???
It will be fine
Well-Known Member
250ish. He takes over new contracts and sells some all the time. He runs a brokerage that sells routes too, I’m sure that’s a bigger portion of his income than the routes.
Who's fault is it that he simply forgot WHY he was a contractor? He's there for two reasons. To provide FXG with
"purchased transportation" at absolute rock bottom rates and to serve as a firewall against the incursion of a union represented workforce. He obviously believes that he is an indispensable part of the FXG network which he is not. And the funny part is that here he is talking about the procurement economies being offered by vendors to contractors. And he wants Fat's and Sahib Raj to pay much higher rates. Why would it be necessary for them to pay higher rates?
Now it's been what two weeks gone by? And what has happened? By the looks of things Fat's and Raj has simply called his bluff.
Sounds like he's in a pretty tough situation. Both revenue streams have dried up . Well, that's trucking for you. In trucking you're a price taker....not a price maker. And for some inexplicable reason he thinks he's important enough to be a price maker.
It will be fine
Well-Known Member
Are you really this obtuse or are you choosing to ignore reality? He’s telling FedEx that contractors have zero to negative profit margins right now. He has the data to back it up. It’s not a power struggle, it’s informational. Bankrupt contractors can’t deliver boxes. It’s in everyone’s best interest to increase compensation to keep the network functional.
Haven’t you been paying attention?
Spencer is a very bright businessman who markets himself well. He’s in absolutely no danger with the company.
You wanna know what revenue stream hasn’t dried up for him? Consulting and ERC tax credit.
But everything Spencer is saying is what I and IWBF have been saying for months. The model is on the verge of collapse and they are beginning to lose customers because of their poor management of the situation.
That’s the rock to the contractors hard place. You believe that the company will simply threaten and apply pressure and contractors will respond with better service. From what I can tell, their threats and protestations are falling on deaf ears. The general consensus seems to be that the company has created the mess so the company can clean it up.
Why?
Because worthless contracts create toothless agreements.
The trucking business has hit hard times. Spot freight rates are nosediving. It's not just FXG. This is the nature of the business. For many years you and the others were raking it. Now, that it has hit hard times you don't know what to do. There's going to be another big shakeout just as it always is whenever the industry hits a difficult period and often for extended period of time.
It would appear that Mr. Patton has also never had to deal with a near wholesale collapse of trucking rates and obviously he has way too much overhead and both fixed and variable costs needs to downsize but can't Now you guys all thought you were pretty good at this so Fat Freddy and Sahib Raj are going to challenge you to see how good you actually are.
Of the 4 contractors at the small terminal I was at 1 was terminated late last week The other 3 are trying to hang on. Always the same old thing. Contractor rates and settlements are based on a contractor employed driver compensation package that is at best about 60-65% of what a UPS driver gets for doing the same work. That contractor had the same problem countless others have had. Couldn't find anybody willing to shoulder that UPS workload for that 60% deal. Those who tried found out quickly how badly they were getting hosed and walked off.
Now you and Patton and the others keep carping about the need to keep the network operating. THAT"S NOT YOUR PROBLEM!
You task is to figure out how to survive in a transportation industry that is known to go down hard, fast and slow to recover.
It will be fine
Well-Known Member
So you are really are this obtuse. Cool.
The reason those contracts are worthless is because and I've told you this before.....NOTHING"S BINDING ! There's not a single term or condition in those worthless contracts that is binding upon FXG because there's no one with the power to make them binding.
Now you said that you would be out by the first of July. Sounds to me like the buyer backed out or couldn't find a banker willing to make a deal. In the mean time friend the network. You don't have any control over that. Focus only on the little bit that you can control.
It is quickly becoming no longer a carriers market but rather a shippers market where they can get whoever they want to truck their junk for whatever they feel like paying. If one guy won't do it two or three others are there grinning like a butcher's dog.
Call me any name you want. It does not change the fact that you, Patton and the rest are completely powerless in the face of an industry that is on the threshold of another major transformation . Something that it has a long history of. Those who can't haul for the rate the market will bear will simply fall away and somebody else will move up .
You had it easy cheesy for unusually long period of time compared to the norm for the industry. The question now is can you adapt to a more challenging environment?
It will be fine
Well-Known Member
You think there are tons of trucking companies willing to move freight for FedEx at a loss?
McFeely
Huge Member
That one guy who was terminated is actually now more profitable than he was with FedEx lol
MAKAVELI
Well-Known Member
Kind of makes the case for an all employee model. Hint, UPS doesn't have this problem....
Clearly you misunderstand the nature of your relationship with Fat Freddy. You think you work for YOU. You do not work for YOU. You have never worked for YOU. You work for FAT FREDDY.
Now tell me something. How much do you think you could get out of your trucks? By your own admission they're just old used rags that you've come across.
The value that you hope to someday cash of out is the contract itself. Those "millions and millions" you've repeatedly told me about. A contract over which Fat Freddy reigns supreme. After all Lord Freddy giveth and Lord Freddy taketh away He knows that this is what you're counting on. Therefore, he's not likely to move quickly if at all. It's much more likely that he will wait to see just how many do fail and simply walk off from their contract and the level of threat to the network . After all, it's his network, not yours. He's likely to first figure out how little you'll take in order to protect a cash out you're desperately counting on.
So in the end he might give you a one time only in your face contract what was that they called it? Oh "enhancement " That's right , "enhancement" . It will be insultingly low and will come with a subtraction some place else. Always has. You will be presented with a Fedex pen and the dotted line to sign on. You can take it if you want or you are free to leave on your own accord.
It will be fine
Well-Known Member
It shouldn’t, but it always amazes me how you love to parade your ignorance. Who do you think will deliver the boxes when contractors are bankrupt? Do you think there are companies knocking down the door for the opportunity?
MAKAVELI
Well-Known Member
No companies knocking down the door. They'll just make it an all employee model like it should be.
Same people they've used before. Managers, staffing agency temps in rentals, draw from a list from people with experience, people delivering out of their cars. And the contractors too heavily leveraged to risk losing it all in a prolonged boycott/ strike.
