FedEx Ground

XEQaF

Well-Known Member
When it comes to the people who are out there everyday serving and interacting with the public in what is and will continue to become an ever more dangerous environment they should be perceived as professionals, perform as professionals, project themselves as professionals and be paid as professionals.

However if they are for one reason or another not being paid as professionals then invariably that employer has to be willing accept a far less productive, far more lethargic and disinterested individual.

The hard labor, inhumane long hours, increasingly hostile work environment in and of itself is bad enough but when you add in low pay into the equation the overall sense of hopelessness will wear on even the most upbeat and productive people to the point when even they don't care anymore.

Seeing that I couldn't provide the square deal my drivers would be deserving of in order to inspire them to take an interest in what they were doing and take governance over that route I decided not to even bother trying. And when I look at the job boards ad from desperate contractors still offering the same money as that which was offered upwards of a decade ago I do not regret my decision.

Even if you aren't able to offer top pay because we all know the margins a contractor has to work with, I believe that if you treat your people with respect and get to know the person, offer an environment that they are happy to come into each day, support them, give them the tools to develop their skills, without having that ego based "do what I say because I'm your boss" attitude (which seems to come from FDX management) then I believe those people will make you and your operation look good when they buy into what you offer them as a person
 

UpstateNYUPSer(Ret)

Well-Known Member
The average consumer model has no idea of the business model used at Ground; heck, most assume that drivers for both opcos are FedEx employees. It's not until you get close to the truck that you can see the contractors DBA info.

You and bacha either don't get it or don't want to hear but to survive in business your income has to exceed your expenses and the biggest expense for most businesses is their cost of labor. Why pay someone $20/hr when you can pay them $15/hr and get nearly the same return on your investment?
 

bacha29

Well-Known Member
The average consumer model has no idea of the business model used at Ground; heck, most assume that drivers for both opcos are FedEx employees. It's not until you get close to the truck that you can see the contractors DBA info.

You and bacha either don't get it or don't want to hear but to survive in business your income has to exceed your expenses and the biggest expense for most businesses is their cost of labor. Why pay someone $20/hr when you can pay them $15/hr and get nearly the same return on your investment?
And why are Ground's net operating margins always at or near the top of the industry by a wide margin and some years nearly double the industry average? That's the part that you're not getting.

With so many air freighters parked and their value going down with each passing day the pressure on Ground for even higher returns to offset the situation at Express will simply overwhelming .
 

XEQaF

Well-Known Member
That's why it's not about the rate of pay, it's got more to do with other intangibles you offer an employee. Productivity isn't measured on how well you pay someone
 

XEQaF

Well-Known Member
And why are Ground's net operating margins always at or near the top of the industry by a wide margin and some years nearly double the industry average? That's the part that you're not getting.

With so many air freighters parked and their value going down with each passing day the pressure on Ground for even higher returns to offset the situation at Express will simply overwhelming .
FDX is based on taking their best horse and running it till it falls over in exhaustion then getting another one. lol. Unfortunately that's the mentality they pass on to their employee contractors too lol
 

Cactus

Just telling it like it is
But in poker, you aren't playing against the house, you're not winning money from the house, and you don't lose money to the house.

You seem to be confused about everything.
And your wife plays strip poker with the neighbors. I hear she likes to lose.
 

59 Dano

I just want to make friends!
When it comes to feces distribution everything I know I learned simply by watching you.

Don't try to give me credit for the unbelievable amounts of manure you spew, re: successful contractors aren't really successful because [insert random nonsensical logic]. I can't take credit for your work.
 

59 Dano

I just want to make friends!
That's why it's not about the rate of pay, it's got more to do with other intangibles you offer an employee. Productivity isn't measured on how well you pay someone

When turnover gets bad enough, contractors will offer more.

It's that simple.
 

bacha29

Well-Known Member
I think the Ground contractor in my area is $19-20/hr from what I’ve heard. Not awful, but they certainly work harder/longer than I do on the daily.
Some are making it as a result of being paid on a ridiculously high stop and piece rate formula exacting a physical beating equally high. All just a question of how long they can withstand it.
 

Cactus

Just telling it like it is
Some are making it as a result of being paid on a ridiculously high stop and piece rate formula exacting a physical beating equally high. All just a question of how long they can withstand it.
Not very long especially with that "wonderful" insurance that Ground offers.
 

bbsam

Moderator
Staff member
Not very long especially with that "wonderful" insurance that Ground offers.
But we’ve already discussed that. Nobody believes Ground driver is a career. It’s not the model so what’s the point in griping that it doesn’t have career like compensation?
 
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