FedEx Ground and Express

[bacha29]

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.

Spot on. Road tractors you can quit a lease one day and being leased on to somebody else the next. One of the reasons contractors are so beholding to Memphis Fats is because they're steps, panels and cut away's have little secondary use outside of sandwich and ice cream trucks . And how many of those do you think you need?

Memphis Fats has made it clear that his company WILL be the LOWEST cost carrier and he seems unafraid to take on whatever damage and upheaval such an aggressive cost cutting program will invariably exact without disruption. The question will be how much damage he can control?

 

[El Morado Diablo]

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?

Whoa, for a second there I thought you were talking about management bonuses.

Bonuses are nice but retention rate would have been higher if they sped up the time to top out. It really shouldn't take more than 3-5 years if you want to draw it out. I think there is a 10-15 year time of service gap between the topped out couriers and everyone else at my station. I don't think any of them are higher than Step 3 or 4. I would think a lot of stations are like this. I feel like FedEx is just playing the long game, waiting for all the topped out people to retire. Most of them already have 25+ years with the company so they'll be gone in the next 10-15 years.

 

[AB831]

Bonuses are nice but retention rate would have been higher if they sped up the time to top out. It really shouldn't take more than 3-5 years if you want to draw it out. I think there is a 10-15 year time of service gap between the topped out couriers and everyone else at my station. I don't think any of them are higher than Step 3 or 4. I would think a lot of stations are like this. I feel like FedEx is just playing the long game, waiting for all the topped out people to retire. Most of them already have 25+ years with the company so they'll be gone in the next 10-15 years.

Oh, you’re “topped out” already. Whatever your rate is now, that’ll be your rate for the rest of you tenure, besides a laughable 2% raise they’ll throw in occasionally just to offset the price hike in your insurance plan. And as far as the 25+ guys being gone in the next 10-15 years, I’d say 1-2 years is more accurate.

 

[MassWineGuy]

Your rate depends a lot on where you work. I’m in a major metro area, but an hour away the rate is $1 to $2 less.

 

[El Morado Diablo]

Oh, you’re “topped out” already. Whatever your rate is now, that’ll be your rate for the rest of you tenure, besides a laughable 2% raise they’ll throw in occasionally just to offset the price hike in your insurance plan. And as far as the 25+ guys being gone in the next 10-15 years, I’d say 1-2 years is more accurate.

I think anyone who isn't topped out should be actively looking for another job. Period.

It's much harder for topped out couriers to find a new job. Unless you are willing to settle for less, the combination of age, job skills, wages, benefits, etc make it difficult to find the right job. As you say, the pay isn't going to get better and the benefits are going to get weaker. I think something drastic would have to happen for them to be gone in 1-2 years. They are simply hanging on to what they currently have until they reach retirement age.

 

[OrioN]

We're caught up in my area.

Had an express label dated for July 7, but delivered on July 4... we have off this Sunday though

 

[zeev]

I think anyone who isn't topped out should be actively looking for another job. Period.

It's much harder for topped out couriers to find a new job. Unless you are willing to settle for less, the combination of age, job skills, wages, benefits, etc make it difficult to find the right job. As you say, the pay isn't going to get better and the benefits are going to get weaker. I think something drastic would have to happen for them to be gone in 1-2 years. They are simply hanging on to what they currently have until they reach retirement age.

Get the Cdl training and leave.

 

[MassWineGuy]

I wish that I could drive big rigs. I’d get trained, work a while and move on. But not everyone has the spatial ability to drive such huge vehicles.

 

[Cactus]

We're caught up in my area.

Had an express label dated for July 7, but delivered on July 4... we have off this Sunday though

A bit off topic for this thread, dontcha’ think?

 

[OrioN]

Doh, replied to the wrong thread. But FXG shouldn't be handling FXE packages at all

@MassWineGuy , why not try it; doesn't FXE pay for the training to become a feedah drivah RTD?

 

[I am FedEx]

Why shouldn’t ground handle E2 express packages? It’s more profitable for FedEx to use all assets allocated to the company.

 

[OrioN]

Because some FXG terminals are lacking for date certain FXE packages.

I'm a cleanup driver and once in awhile I'll see FXE packages that were sorted late after the regular route driver left the building.

So I create a trash route covering 6 to 10 zones and deliver them.

No biggie, I'm not topping 100 stops anymore on a given day

 

[I am FedEx]

Are you a Ground driver? Or a contractor?

 

[fedx]

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.

I've noticed Walmart is using more and more contractors to pull their trailers. Usually a regional trucking company pulling a Walmart trailer. You still occasionally see Walmart semis pulling Walmart trailers, but it's not as prevalent as it once was. Target went to a contractor model a long time ago. It's very rare to see a Target trailer being pulled by a company semi. But I've asked this question before and I'll ask it again- how does UPS beat FedEx in almost every metric when FedEx is using non unionized company employees with most earning 1/2 what UPS pays and FedEx's Ground model doesn't even use company employees? FedEx should be blowing UPS out of the water based on all their cost cutting measures and low pay, but they're not. UPS and their highly paid unionized employees are blowing Fred's model out of the water. I don't understand how because on paper you'd think FedEx would be way better off than UPS, but it's the opposite.

 

[Fred's Myth]

I've noticed Walmart is using more and more contractors to pull their trailers. Usually a regional trucking company pulling a Walmart trailer. You still occasionally see Walmart semis pulling Walmart trailers, but it's not as prevalent as it once was. Target went to a contractor model a long time ago. It's very rare to see a Target trailer being pulled by a company semi. But I've asked this question before and I'll ask it again- how does UPS beat FedEx in almost every metric when FedEx is using non unionized company employees with most earning 1/2 what UPS pays and FedEx's Ground model doesn't even use company employees? FedEx should be blowing UPS out of the water based on all their cost cutting measures and low pay, but they're not. UPS and their highly paid unionized employees are blowing Fred's model out of the water. I don't understand how because on paper you'd think FedEx would be way better off than UPS, but it's the opposite.

Because those who failed at management at UPS form the main pool of candidates for FedEx management. They bring their fiasco mentality and schemes to FedEx. They form a cabal and a mindset that logic and rational thought can't overcome. Where simplification of the process is desired, they bring complication and ultimate failure. Morale tanks, and productivity starts an irreversible decline.

Then they bring their losing philosophy to the other opcos. And have Dano monitor BC and defend the darkness.

 

[zeev]

FedEx Ground drivers unite on Facebook has a picture this morning of a hub with packages pile up and no drivers . Video from inside the hub against company policy but you can’t afford to lose the one driver you have.

 

[Fred's Myth]

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?

A ‘realistic goal’ would be one set by the manager running the route, utilizing best practices, while being observed by the courier.

Management needs a little skin in the game. Agreed?

 

[dezguy]

A ‘realistic goal’ would be one set by the manager running the route, utilizing best practices, while being observed by the courier.

Management needs a little skin in the game. Agreed?

What? Having a boot licker runner senior courier blowing out a route because they think it's funny isn't good enough?

 

[59 Dano]

I've noticed Walmart is using more and more contractors to pull their trailers. Usually a regional trucking company pulling a Walmart trailer. You still occasionally see Walmart semis pulling Walmart trailers, but it's not as prevalent as it once was. Target went to a contractor model a long time ago. It's very rare to see a Target trailer being pulled by a company semi. But I've asked this question before and I'll ask it again- how does UPS beat FedEx in almost every metric when FedEx is using non unionized company employees with most earning 1/2 what UPS pays and FedEx's Ground model doesn't even use company employees? FedEx should be blowing UPS out of the water based on all their cost cutting measures and low pay, but they're not. UPS and their highly paid unionized employees are blowing Fred's model out of the water. I don't understand how because on paper you'd think FedEx would be way better off than UPS, but it's the opposite.

Why? Express and Ground have an average daily global package volume 15 million pieces. UPS has an average daily global package volume of 21.9 million pieces. You're looking at the labor side of it and ignoring that UPS handles in excess of 40% more packages each day. UPS' volume allows them economies of scale that FedEx can't achieve at current volumes.

 

[59 Dano]

A ‘realistic goal’ would be one set by the manager running the route, utilizing best practices, while being observed by the courier.

Management needs a little skin in the game. Agreed?

No, that's beyond stupid. It's not the manager's job to run the route. Why would his performance on a route mean anything? That's redneck logic.