FedEx contractor revolt?

[CookiePuss]

This could get interesting!

FedEx Contractor Revolt Intensifies With Calls for Pay Increase

FedEx Corp. is facing more pressure to raise pay for the small businesses that deliver a big portion of its packages, adding another hurdle to the logistic giant’s plans to boost profitability.

www.bloomberg.com

 

[yadig]

The article mentions contractors going union! bye, bye contractors. FedEx won’t be intimidated into paying contractors more and will cut the squeaky wheels. It’s good to see some balls being showed by a couple contractors. They are gonna have to be more like the pilots at express if they expect any changes. They know you’re not gonna do much and most are heavily in debt.

 

[It will be fine]

The article mentions contractors going union! bye, bye contractors. FedEx won’t be intimidated into paying contractors more and will cut the squeaky wheels. It’s good to see some balls being showed by a couple contractors. They are gonna have to be more like the pilots at express if they expect any changes. They know you’re not gonna do much and most are heavily in debt.

There is a significant percentage of contractors that have no debt, especially after the Covid money. The contracts aren’t profitable and without meaningful changes they hold no equity value. When you ain’t got nothing, you got nothing to lose.

 

[yadig]

There is a significant percentage of contractors that have no debt, especially after the Covid money. The contracts aren’t profitable and without meaningful changes they hold no equity value. When you ain’t got nothing, you got nothing to lose.

That’s good to hear. It would be a good time to push for better pay then.

 

[dezguy]

Couldn't happen to a nicer company.

 

[fedx]

It says this contractor revolt is throwing a wrench into Raj's plans to boost profits. In other words, he was going to use the contractors like a mule to boost his profits-so the executives can buy a bigger jet/yacht or mansion at the contractors' expense. Just use them up. Don't expect FedEx to share much of their new found profit boost with the contractors either. Anyone at Express can vouch for that from their 10 step pay BS. This puts FedEx in a pickle though. Their plans to eventually do away with Express and use the Ground contractor model or switch Ground to be actual employees and face a union vote. Raj said he is going to "sweat the assets" which means you need to do more with less. Sweat the assets means sweat the employees even more. One thing is for sure, FedEx doesn't care what employees or contractors think about it either. This Spencer Patton guy will find out he might as well discuss his concerns with his dog or cat as they will be more willing to listen than Raj or Fred.

 

[Gone fishin]

It says this contractor revolt is throwing a wrench into Raj's plans to boost profits. In other words, he was going to use the contractors like a mule to boost his profits-so the executives can buy a bigger jet/yacht or mansion at the contractors' expense. Just use them up. Don't expect FedEx to share much of their new found profit boost with the contractors either. Anyone at Express can vouch for that from their 10 step pay BS. This puts FedEx in a pickle though. Their plans to eventually do away with Express and use the Ground contractor model or switch Ground to be actual employees and face a union vote. Raj said he is going to "sweat the assets" which means you need to do more with less. Sweat the assets means sweat the employees even more. One thing is for sure, FedEx doesn't care what employees or contractors think about it either. This Spencer Patton guy will find out he might as well discuss his concerns with his dog or cat as they will be more willing to listen than Raj or Fred.

They’re not doing away with express. They’ll make Ground drivers employees and run it exactly like UPS. Ground has run its course and it’s no longer worth the horrible service for the shrinking profit. Time to merge and do away with contractors

 

[CookiePuss]

 

[bbsam]

It says this contractor revolt is throwing a wrench into Raj's plans to boost profits. In other words, he was going to use the contractors like a mule to boost his profits-so the executives can buy a bigger jet/yacht or mansion at the contractors' expense. Just use them up. Don't expect FedEx to share much of their new found profit boost with the contractors either. Anyone at Express can vouch for that from their 10 step pay BS. This puts FedEx in a pickle though. Their plans to eventually do away with Express and use the Ground contractor model or switch Ground to be actual employees and face a union vote. Raj said he is going to "sweat the assets" which means you need to do more with less. Sweat the assets means sweat the employees even more. One thing is for sure, FedEx doesn't care what employees or contractors think about it either. This Spencer Patton guy will find out he might as well discuss his concerns with his dog or cat as they will be more willing to listen than Raj or Fred.

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.

 

[zeev]

This is Freddy’s worst nightmare, a strong contractor, follow through strike while the iron. Is hot. Organized contractors go for it.

 

[bacha29]

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.

 

[bacha29]

This is Freddy’s worst nightmare, a strong contractor, follow through strike while the iron. Is hot. Organized contractors go for it.

An organized work stoppage by contractors? Very unlikely to happen and even if it did the disruption would be minimal far less than what was expected and operations would be back to normal within 2 or 3 days. You see Patton tipped his hand months ago and as a result Fat's and Raj have had months to prepare.

Keep in mind, this is Spencer Patton not George S. Patton. While he might look like Mr. Peabody's assistant Sherman this guy is not William Tecumseh Sherman. Now he can launch his own little march to the sea if he wants but he won't even get out of town .

 

[bbsam]

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.

You really don’t understand what’s happening here at all. Spencer has quite a following of desperate contractors with nothing left to lose. His November 25 date is a day that will have significance well before then.

Tell me this: if the contracts are worthless and contractors have no reason to protect them, why would they staff up for peak?

 

[It will be fine]

An organized work stoppage by contractors? Very unlikely to happen and even if it did the disruption would be minimal far less than what was expected and operations would be back to normal within 2 or 3 days. You see Patton tipped his hand months ago and as a result Fat's and Raj have had months to prepare.

Keep in mind, this is Spencer Patton not George S. Patton. While he might look like Mr. Peabody's assistant Sherman this guy is not William Tecumseh Sherman. Now he can launch his own little march to the sea if he wants but he won't even get out of town .

You know Spencer took the same opportunity you had and turned it into multiple multimillion dollar businesses, right? He could easily walk away tomorrow and comfortably retire or move on to other things. That said he’s still risking probably $30-40 million in annual route revenue to try and return value to all contractors. It’s strange that you of all people look down your nose at that. All you did was saddle some poor kid with debt on your way out the door.

 

[bacha29]

You know Spencer took the same opportunity you had and turned it into multiple multimillion dollar businesses, right? He could easily walk away tomorrow and comfortably retire or move on to other things. That said he’s still risking probably $30-40 million in annual route revenue to try and return value to all contractors. It’s strange that you of all people look down your nose at that. All you did was saddle some poor kid with debt on your way out the door.

You're not talking here about the average contractor . You're talking here about one of if not the biggest contractor. The rest of you guys should find it embarrassing that the largest FXG contractor has been reduced to the sniveling pathetic little creature he is today. If you noticed how carefully he chose his words so as not to say anything inflammatory that could anger Fat's and Raj.

He is obviously just as powerless to effect any change other that which Fat's and Raj are certain will first and foremost benefit and benefit to a far greater degree shareholders and executives . What he's saying now is the same thing he said 4-5 months ago and in the same noninflammatory tone that he used back then. He powerless, and Fat's and Raj know it. Nothing happened then and nothing is going to happen now. Similar to earlier this week when McDonald's franchisees passed a "no confidence" vote in CEO Joe Ehrlinger. You saw how much of an impact that had.

As far as that young man who needed my contract. His was the first and last offer, lower than what I probably could have held out for and received but his was a sincere offer. In the end he was rewarded with a no money down 100% owner financed transaction at the lowest interest rate the IRS would allow for an owner financed transaction. Now are you going to do that for the person who wants to buy your contract but needs a break? Then again as badly as the way things are going for you guys the sale of your contract is likely to be one of those "take it off your hands" type of agreements with terms accordingly.

 

[zeev]

Time will tell , but this is the first time that contractors have ever organized against a powerful Corp. He called it an association which was wise, unlike the hourly who can be bought off cheaply for a pizza party, contractors actually know how much they are worth and what they need to make the model work. I wish them all the best.

 

[bacha29]

You really don’t understand what’s happening here at all. Spencer has quite a following of desperate contractors with nothing left to lose. His November 25 date is a day that will have significance well before then.

Tell me this: if the contracts are worthless and contractors have no reason to protect them, why would they staff up for peak?

Nothing happened when he tried to organize contractors into a single bargaining unit. He's trying it again and again nothing will happen. He has no support large enough and reliable enough and is no stronger now than he was earlier. Unless he can find a way to create at least a 90% effective shutdown of an entire region of the country for at least 6 weeks he has zero chance of success and that's not going to happen. Furthermore it couldn't be more obvious that he's thinking only about himself and is most definitely not going to put his balls on the anvil and take personal economic risks in behalf of contractors overall.

In addition the 60 billion on the balance sheet as was note by Patton....what does that tell you.? It tells me that Fat's and Raj are gearing up for a hostile takeover bid or a proxy fight for control of the company. If that's what they're up to while they might toss some tiny settlement scraps you way it will likely be nowhere near what Patton wants. AS it always was in the past. They'll throw a 25 foot rope to a guy drowning 50 feet off shore.

 

[bbsam]

You're not talking here about the average contractor . You're talking here about one of if not the biggest contractor. The rest of you guys should find it embarrassing that the largest FXG contractor has been reduced to the sniveling pathetic little creature he is today. If you noticed how carefully he chose his words so as not to say anything inflammatory that could anger Fat's and Raj.

He is obviously just as powerless to effect any change other that which Fat's and Raj are certain will first and foremost benefit and benefit to a far greater degree shareholders and executives . What he's saying now is the same thing he said 4-5 months ago and in the same noninflammatory tone that he used back then. He powerless, and Fat's and Raj know it. Nothing happened then and nothing is going to happen now. Similar to earlier this week when McDonald's franchisees passed a "no confidence" vote in CEO Joe Ehrlinger. You saw how much of an impact that had.

As far as that young man who needed my contract. His was the first and last offer, lower than what I probably could have held out for and received but his was a sincere offer. In the end he was rewarded with a no money down 100% owner financed transaction at the lowest interest rate the IRS would allow for an owner financed transaction. Now are you going to do that for the person who wants to buy your contract but needs a break? Then again as badly as the way things are going for you guys the sale of your contract is likely to be one of those "take it off your hands" type of agreements with terms accordingly.

You keep talking about this as if it’s supposed to be a power struggle.

It’s not. It’s a sober analysis of a situation that is bad, getting worse, unsustainable, and should be of paramount interest to investors and customers.

If they do not address the model, it will implode. It’s not a threat. It’s just facts. If they are ok with it, then so be it.

 

[FalconAss]

You're not talking here about the average contractor . You're talking here about one of if not the biggest contractor. The rest of you guys should find it embarrassing that the largest FXG contractor has been reduced to the sniveling pathetic little creature he is today. If you noticed how carefully he chose his words so as not to say anything inflammatory that could anger Fat's and Raj.

He is obviously just as powerless to effect any change other that which Fat's and Raj are certain will first and foremost benefit and benefit to a far greater degree shareholders and executives . What he's saying now is the same thing he said 4-5 months ago and in the same noninflammatory tone that he used back then. He powerless, and Fat's and Raj know it. Nothing happened then and nothing is going to happen now. Similar to earlier this week when McDonald's franchisees passed a "no confidence" vote in CEO Joe Ehrlinger. You saw how much of an impact that had.

As far as that young man who needed my contract. His was the first and last offer, lower than what I probably could have held out for and received but his was a sincere offer. In the end he was rewarded with a no money down 100% owner financed transaction at the lowest interest rate the IRS would allow for an owner financed transaction. Now are you going to do that for the person who wants to buy your contract but needs a break? Then again as badly as the way things are going for you guys the sale of your contract is likely to be one of those "take it off your hands" type of agreements with terms accordingly.

Jealousy is ugly.

 

[bbsam]

Nothing happened when he tried to organize contractors into a single bargaining unit. He's trying it again and again nothing will happen. He has no support large enough and reliable enough and is no stronger now than he was earlier. Unless he can find a way to create at least a 90% effective shutdown of an entire region of the country for at least 6 weeks he has zero chance of success and that's not going to happen. Furthermore it couldn't be more obvious that he's thinking only about himself and is most definitely not going to put his balls on the anvil and take personal economic risks in behalf of contractors overall.

In addition the 60 billion on the balance sheet as was note by Patton....what does that tell you.? It tells me that Fat's and Raj are gearing up for a hostile takeover bid or a proxy fight for control of the company. If that's what they're up to while they might toss some tiny settlement scraps you way it will likely be nowhere near what Patton wants. AS it always was in the past. They'll throw a 25 foot rope to a guy drowning 50 feet off shore.

It doesn’t matter. Whoever runs the Ground sector will be King of the Ashes. What Pattons doing isn’t new. It’s a continuation of everything contractors have been telling the company since February.