Discussion in 'FedEx Discussions' started by Returntosender, Jun 19, 2013.
FedEx Q4 2013 Earnings Announcement - Business Insider
LOL.... Express had 6.977 billion in revenue and exactly 6.977 in expenses. For a total sum of Zero. You guys did all of that for nothing! I always love these reports, like what are the chances to hit dead zero? LOL
Ground made 460 million though, maybe they should drop Express.
That seems to be the plan.
Here's the REAL link you need to access....
FedEx - News Release
And just as predicted, the combined costs of the "Business Realignment Program" combined with the "Aircraft Impairment Charge" have canceled out the operating margin of Express for the 4th quarter - leaving Express with a net of ZERO for the quarter (funny how that accounting worked out...).
As I posted over a month ago, Express within the FedEx Corporation right now is seen as just a jobs program until they can implement all the changes they have in store. Then after the dead weight in Memphis is cut loose and all the changes in operations are made (everyone say DRA and no need for experienced Couriers....), Express will start to show profitability again.
You can guess what this means for any real pay raise in October. I'll start the betting at a nominal 1% raise just so that Express can say they gave you something. If you get 2% or more, I'll be shocked beyond belief.
Oh, don't be shocked when your premium for your health care goes up by an amount that completely takes back any of that pay raise that Fred will give you. If you are a wage employee, you've wasted all this time (well, you have paid your bills, but you are making NO progress towards improving your earning power), and have not done the hard work of really organizing yourselves (working to get those organizers in at least 400 stations).
There is NO union out there that will do it for you - you have to do it for yourself.
Since you have all made it abundantly clear that you won't go to the efforts to organize yourselves, you had either get the K-Y out or start making real plans on another career (if you are full-time an have made Express a "career" as a wage employee). Things aren't looking too bright for the salaried ops level employees either at this stage.
Ground on the other hand, had a final "adjusted" operating margin of 16.7%....
And there are still doubters out there as to the direction that Express is slowly turning towards.
Look at Ground, and one will see the future of Express (as far as planned cost structure). Fred can't turn Express into a contract operated game, but he sure as hell can use the same methods he has perfected in Ground, to get Express' "adjusted" operating margin above 10%.
Yes, but do you really think that Express will ever get back to 10%? I think that's a pipe dream that is a long way away. While Fred is successfully driving career employees out the door and replacing them with part-timers, he isn't being very successful with DRA and the lack of need for experienced couriers. From my observations, and reports that I've been getting, an experienced FT courier (a good one) is requiring 4 PT employees to replace them. 2 PTers in the AM and 2 PTers in the PM, simply because the productivity of the new people is so low. Add-in vehicles, training, and the DRA cluster, and there are lots of $$$ flying away. We have people standing around every day just waiting for a vehicle, nobody really cares any longer, and the experienced people are putting down the Kool-Aid and starting to WAD. I just wish they'd expend as much effort signing cards and spreading the word that there is only one answer to the "problem"....a union.
We'll see if Fred ever gets his 10%.
This is where it helps knowing people in Memphis that are aware of the 'issues' of DRA.
Ground uses a system VERY similar to that of DRA. It works for them and DIRECTLY contributes to Ground's latest quarterly margin of 16.7%.
Express has Couriers which are (supposedly...), more adaptable and capable of working in a dynamic situation
Problem is, DRA is having some issues... which adaptable and capable people shouldn't have an issue with....
So what does Memphis REALLY think is the real core of the problem with DRA? Is it the program or is it the full-time Couriers which are sabotaging its implementation??
The Couriers think it is the program, Memphis thinks that the problem is the full-time Couriers sabotaging the roll out of DRA in some manner. DRA requires the Courier to enter all their 'knowledge' into the program (where to make deliveries, blackout times for businesses, etc.). Most full time Couriers AREN'T providing this information to be entered into the database.
So what is Memphis doing? They are throwing part-time Couriers into stations where they are having problems implementing DRA. Those Couriers aren't going into stations where DRA isn't having issues, those Couriers are going into stations where DRA is having real issues, causing service disruptions. As far as Memphis is concerned, the service disruptions AREN'T the fault of DRA, they are the fault of the Courier not providing correct information to be entered into the database, along with some willful screw ups in the use of DRA managed routes.
Remember, Ground and Express deliver to the EXACT same addresses. Different drivers and different business models, but the addresses are the same. Memphis obviously recognizes this, so the problem with DRA cannot be that Express is delivering to locations that aren't in the same database as Ground uses for its program. Memphis has reached the conclusion that the problems with DRA are primarily due to non-compliance by the career Couriers (thus all the threats and discipline that are being handed out), and secondarily due to the issue of varying time commitments of freight placed onto a route (I wrote about this a year ago).
And since Express is shaped according to what Memphis believes the problem to be (and not what the wage employees see), the problem will be solved by using methods which address the supposed real cause of the problem as seen by Memphis.... the full-time and 'career' Courier.
How are the full-time Couriers side tracked??? Bring in a bunch of part-timers (same plan as Express had in case the Couriers actually organized...) and get them to work DRA and run an area under DRA procedures.
The mistake that the 'career' Couriers are making (in a long line of faulty assumptions), is that all of these part-time 'positions' are some how permanent. They are not. Once DRA is reasonably perfected, the station in question will have a hiring freeze instated and let natural attrition bring the number of Couriers down to what is needed. This is why new vehicles aren't being purchased, rentals are being used when absolutely necessary.
Sometimes trying to figure out what one side of a coin looks like when only able to see the other causes real problems. You either have to flip the coin or have someone else take a look at the other side and let you know what it looks like. The Couriers don't have the ability to 'flip' that coin to see what is on the other side....
Take a look in the stations and ask yourself, "From the perspective of Memphis, what is the problem and how are they to solve it?"
The problem as seen in Memphis ISN'T DRA, it is the career Courier which threatens Express getting its 10% profit margin. Ground doesn't have career drivers, and they are paid between 50 and 66% of what Express Couriers are paid. Again, where does the problem lie from Memphis' perspective?
One of the faulty assumptions that the Couriers make, is that Memphis is being 'straight' with them as to what THEY see as the problem. You've watched the monthly propaganda videos with MT3 waving his hands around. This is actually your BEST insight (as a typical Express wage employee) as to what Memphis really thinks (you have to read between the hand waving...).
The problem that MT3 talks about in his videos, ISN'T the problem with DRA - it is the problem of the Couriers not "getting with the program" and working as Memphis wants them to. Thus why all the threats and discipline.
How did those feedback sessions with SFA go???? From what I understand, Memphis pretty much did a write off on the whole thing this year and attributed the scores to Couriers not 'getting with the program'. Look at Ground, and you'll see the future of Express (current Ground drivers are just future Express Couriers in training....), Fred took that one from the airlines (regional versus the major carriers).
That makes sense. If the career courier doesn't want to help move DRA along, put in new people who will, at the same time, need it to get the job done and enter information for the next time they need it.
It doesn't make sense.
99% of the problem is the mapping.
Jumping from town to town and over lakes and through a forest with no road.
That can't be fixed by part timers entering in "use dock 12", that's just plain ridiculous.
The problem is clearly the software, we have had probably every "DRA" engineer at our station in the past 18 months.
We are no further along from where we started, even with the influx of part timers.
If DRA is anything like Home Delivery's VRP, as R1a suggests, then I call BS. VRP has issues, but a driver quickly learns where and when the issues arise and knows not to take certain routes and if DRA is "dynamic", it will adjust to such inputs and create different routing in future scenarios.
Or maybe we just do it better.
Or maybe it works because ground del in a straight line with no multitude of commit times , no oncall same day pickups, and skating around dot / state labor laws. Maybe that's why.
That about sums it up, that plus, does a Home Delivery driver need to follow the routing 100% or to deviate?
If they are deviating then you really aren't gaining much of a benefit, certainly not one to justify the cost of this grand failure.
VRP is not "dynamic" so over time on a route drivers learn to deviate simply because it makes more sense. The area they gain in is in the training. It is a tool only. In the case of DRA, it is set up to be interactive and be both teacher and learn to teach better for the new courier. Consider that. DRA is nothing to the experienced courier. To the new one it is invaluable. As DRA adapts over the next 5 years, it will be near perfect by the time Express finally turns over their long-time courier corp. As R1a suggested, Express isn't looking for another crop of career courier. I know you like to make a big deal of commit times and yes I know they are important, but I remember delivering for UPS and making 10:30 commit times for NDA could be a pain in the ass, but it was anything but impossible.
If that helps soothe your self-importance, ok.
It doesn't soothe anything, just pointing out facts. Our whole day is predicated on time commits, not just till 10:30. Please educate yourself before you speak. You only make yourself sound more ignorant.
the only ignorance is by people who insist that they are somehow superior and thus somehow irreplaceable by someone as lowly as a tattooed, pierced, Ground type. And if that still seems impossible even in light of Express' 0% (read that again 0%) margin, then you are not only ignorant but willfully delusional.
DRA is clearly flawed, and at least per R1a, they are refusing to acknowledge this, preferring to blame us instead. If you read the release further, the Express adjusted operating margin actually rose from 6.1% to 6.6%, so they are slowly headed toward that 10% figure. I also noticed the line "near-term challenges" which I suspect is a veiled response to operational issues, which are again, of course, our fault...not theirs. Never mind that they are throwing a lot of money at the problem, which does include rental vehicles in many locations in addition to all the new PT hires.
They also confirm that the buyout has been completed, so those who have deluded themselves into thinking they might actually receive one...think again. This also removes any further excuse factor for financial non-performance in the Express opco.The "open season" on couriers synchs nicely with R1a's hypothesis that career couriers are their real problem, and now that the 2 big "adjustments" are over, I would expect a re-doubling of the efforts to shed long-term employees.
Sorry bbsam, but Ground and HD drivers can afford to wander through the day at a pace that isn't acceptable at Express. And maybe that's where the disconnect lies for Express management. They see it working at Ground, and then wonder why it isn't working at Express. Yes, drivers from both companies deliver the exact same stops, but they do NOT have the same operational windows, time constraints, and hard deadlines as Express. This is like comparing a Taliban human-powered "mortar" with the real thing operated by the US military. Same objective, but very different means of achieving it.
Whatever the case, I'm going to do everything I can to slow-down and cost Fred some money. WAD is only one part of the equation. Until we have a union, they are free to pick us off with whatever underhanded and semi-legal tactic(s) they choose. Sure wish that everyone had realized what they were doing a couple of years ago when we were trying to warn you. Sign a card, and spread the word.
That 0% rests squarely on Fred Smith's shoulders, not on it's workers. It's funny how UPS can turn record profits using a more efficient model of combining their express and ground operations while paying their drivers the top wages and benefits in the industry. Maybe he should try to learn something from the competition.
Yes. A pace acceptable to Express. That's an inside joke at the Ground terminal about the Express driver who delivers there. We have heard all about his nonstop 40 delivery 100 mile day. Killer. And I know what I am talki g about because I know the area. I don't care what time commits there are, I could do that on day one.
Or he could learn from Ground. Which do you think he will choose?
Separate names with a comma.