FedEx Ground and Express

[fedx]

So with Express starting to send non-business deliveries over to Ground in their "last mile optimization" plan, along with UPS having a single delivery model that is outperforming FedEx, what do you think are the chances of FedEx completely copying UPS' model? In other words, instead of having FedEx Express and FedEx Ground, you'd just have "FedEx" and one truck delivers overnight packages along with ground packages, just like UPS does. If FedEx does go with a one company delivery model, do you think FedEx will wise up and take back Ground to make it all company owned or do you think they will move everything to an all contractor model? It sounds like contractors are having a really hard time keeping up with this increase in volume, so do you think Fred would still shift everything to an already stressed all contractor model that could eventually take down the company?

 

[silenze]

Revenue and the stock price says the contractors are doing a great job. See ya later express.

 

[AB831]

So with Express starting to send non-business deliveries over to Ground in their "last mile optimization" plan, along with UPS having a single delivery model that is outperforming FedEx, what do you think are the chances of FedEx completely copying UPS' model? In other words, instead of having FedEx Express and FedEx Ground, you'd just have "FedEx" and one truck delivers overnight packages along with ground packages, just like UPS does. If FedEx does go with a one company delivery model, do you think FedEx will wise up and take back Ground to make it all company owned or do you think they will move everything to an all contractor model? It sounds like contractors are having a really hard time keeping up with this increase in volume, so do you think Fred would still shift everything to an already stressed all contractor model that could eventually take down the company?

Fat Freddy doesn't care if the contractors or their employees are stressed to the point of breaking. The only thing keeping him from doing a full fledged merger over the weekend is his crippling fear of unions and losing his RLA exemption. His dream in all of this is to run the same kind of network as UPS, but to pay the workers the wage of a handler instead of the $35+ an hour that UPS drivers make for doing comparable work. He is going to do everything within his capability of making that a reality.

 

[fedx]

Fat Freddy doesn't care if the contractors or their employees are stressed to the point of breaking. The only thing keeping him from doing a full fledged merger over the weekend is his crippling fear of unions and losing his RLA exemption. His dream in all of this is to run the same kind of network as UPS, but to pay the workers the wage of a handler instead of the $35+ an hour that UPS drivers make for doing comparable work. He is going to do everything within his capability of making that a reality.

He could wish that, but people aren't going to go along with it. It's almost like that now and the company has people quitting constantly. It's a never ending posting of job openings.

 

[59 Dano]

If FedEx does go with a one company delivery model,

"If Colin Kaepernick does win 4 Super Bowls..."

do you think FedEx will wise up and take back Ground to make it all company owned or do you think they will move everything to an all contractor model?

Neither because there's value in having 2 separate brands and ditching the Ground contractor model would be the dumbest decision possible.

 

[AB831]

Neither because there's value in having 2 separate brands and ditching the Ground contractor model would be the dumbest decision possible.

I don’t think Ground is the brand anyone thinks they’ll be ditching.

 

[59 Dano]

I don’t think Ground is the brand anyone thinks they’ll be ditching.

No one suggested such a thing for any brand.

 

[Working4the1%]

When Liz Warren is AG we will see Ground Scam exposed and have to PAY UP

 

[AB831]

He could wish that, but people aren't going to go along with it. It's almost like that now and the company has people quitting constantly. It's a never ending posting of job openings.

That’s exactly what he wants to see. Quit your $25+ an hour job, and get replaced by someone making the bare minimum. Where he’s mistaken is in his belief that people are lining up to work for him, but he’ll find out at Christmas when his bread and butter Express is rolling out the tarps to cover up the mountains of backlogged freight that has no one to deliver it.

 

[fedx]

That’s exactly what he wants to see. Quit your $25+ an hour job, and get replaced by someone making the bare minimum. Where he’s mistaken is in his belief that people are lining up to work for him, but he’ll find out at Christmas when his bread and butter Express is rolling out the tarps to cover up the mountains of backlogged freight that has no one to deliver it.

From what I've talked to long timers at Express, there was a time when Fred topped people out quickly. Anywhere from 3 months to a year and a half. Then he decided to make it 20 years to top out and the company has had a problem keeping employees ever since. I'm not sure why Fred went to such an extreme top out time period like 20 years. Totally ridiculous. Basically work your whole career there and top out right around the time you're retiring. Even if Express made it 5 years to top out, he'd keep employees from quitting, but they went with 10 years (still ridiculous) and then they stopped the step progression this year. No newer employees have any faith in the company and their plans to top them out, so they quit.

 

[AB831]

From what I've talked to long timers at Express, there was a time when Fred topped people out quickly. Anywhere from 3 months to a year and a half. Then he decided to make it 20 years to top out and the company has had a problem keeping employees ever since. I'm not sure why Fred went to such an extreme top out time period like 20 years. Totally ridiculous. Basically work your whole career there and top out right around the time you're retiring. Even if Express made it 5 years to top out, he'd keep employees from quitting, but they went with 10 years (still ridiculous) and then they stopped the step progression this year. No newer employees have any faith in the company and their plans to top them out, so they quit.

I’m 29, 4 years in, and making $21 an hour. I’m planning on finishing out the year to pay for next spring’s school semester, and then finding something part time while I finish my last year of grad school. When hired, my plan was to work my whole career there, but once I realized I was “topped out” already, I decided to go back to school and cautiously plan out a way to move on.

 

[MassWineGuy]

Are you Express? I started at around $19 and now get slightly over $23. With Express 5 1/2 years. Would be nice if they realized that investing in employees is as important as buying new jets. Or in the case of those based in Colliersville, new golf clubs.

 

[AB831]

Are you Express? I started at around $19 and now get slightly over $23. With Express 5 1/2 years. Would be nice if they realized that investing in employees is as important as buying new jets. Or in the case of those based in Colliersville, new golf clubs.

I am. Unfortunately, I think Fat Freddy sees employees the same way he sees vehicles: a necessary liability that doesn’t need to be maintained or cared for.

 

[MassWineGuy]

Can’t disagree.

 

[Fred's Myth]

If (big IF) they were smart, they would top everyone out in two years at a lower top out rate, then give significant performance bonuses based on realistic goals. Prove to me incentives don’t work and I’ll retract my idea.

 

[AB831]

If (big IF) they were smart, they would top everyone out in two years at a lower top out rate, then give significant performance bonuses based on realistic goals. Prove to me incentives don’t work and I’ll retract my idea.

Absolutely. I would actually give 100% every day, if there was an incentive other than “we’ll pile even more work on top of you.”

 

[Nolimitz]

Are you Express? I started at around $19 and now get slightly over $23. With Express 5 1/2 years. Would be nice if they realized that investing in employees is as important as buying new jets. Or in the case of those based in Colliersville, new golf clubs.

ive been here 10.5 yrs AND NOT EVEN CLOSE TO $23

 

[AB831]

ive been here 10.5 yrs AND NOT EVEN CLOSE TO $23

Seriously?

 

[59 Dano]

If (big IF) they were smart, they would top everyone out in two years at a lower top out rate, then give significant performance bonuses based on realistic goals. Prove to me incentives don’t work and I’ll retract my idea.

What impact would that have on the bottom line? How much of a decrease in turnover would that create? Would it create enough of a decrease in turnover to justify cutting the training budget? How hard should it be to hit a goal per every $100 of a performance bonus? What percentage of employees should be expected to hit a "realistic goal?" How much of an incentive does this create for employees to falsify? How "realistic" do the goals have to be in order for the older, slower couriers to be able to reach them and avoid age discrimination complaints?

 

[zeev]

They are looking to go an all contractor model like many trucking companies used to do. Ironically Costco and Walmart went back to the employee model for reliability. If you own a few trucks you can always take them elsewhere but with the small trucks you are stuck and they can grind those contractors who in turn grind the drivers.