Fedex paying 500 a day to run unserviced routes

Exec32

Well-Known Member
It sounds like you didn’t know many other contractors. It’s pretty bizarre to assume you know how hundreds of different small companies set their pay scales. I have a set pay scale and progression and a clear policy on raises after that and performance bonus opportunities for guys that want more. It’s all in my employee handbook. You’re complaining about an issue you have no actual knowledge of. It makes you seem delusional.
If what you say is true, then you dont have s problem with the reason I post this discussion. I'm sure all your drivers know why and how you pay what you do. You should have no problem with your drivers discussing wages among gst themselves. This however I would describe as the exception, right?
 

Exec32

Well-Known Member
Don’t talk like you have any idea what most of us do or did. You have no clue!!

Majority of us probably all by now since they were cracking down on it HAVE HANDBOOKS!!!! Most of all this is spelled out along with performance bonuses, paid holidays, paid vacation, wages, and raises. I told everyone when they stated (AT THE SAME PAY!!!) what they had to do to get a raise faster than what was in handbook, which was show up, do your job, get done a head of time so you could take a break or help in the event of issues or breakdowns.
I had 3 employees start at $650 plus bonus my first year I was contracting and within 3 months 1 was making over $800 plus bonus and the other 2 were $750 plus bonus. I think that was a lot better than a typical yearly corporate bonus. And you know why, BECAUSE THEY EARNED IT, and earned respect!
If they did half of what you say, they wouldn’t have been with me a week. Pay them there $650 and boot their ass out the door.

I didn’t really care the length someone was employed the person dictated the wage. If you “couldn’t” do 100+ stops doesn’t matter how long you are employed you will never be $800+ driver because you aren’t hitting the thresholds to pay for yourself. If you can hit 130+ when :censored2: hits the fan and been with me less than a year you are worth way more than the other.
Then why do you have a problem with this discussion I posted, if what you claim is what you do?
 

FedGT

Well-Known Member
Then why do you have a problem with this discussion I posted, if what you claim is what you do?
I’ve already said, because of entitlement of today’s work force. A first year guy that can hit 120 stops and 25 pickups could be making way more than a 3 year guy that tops out at 97 deliveries and 5 pickups. Like I said it is about what an individual is capable of not how long someone is working especially if that guy is constantly calling for help.
Most people see that they are doing the same job as another but lack focus and self realization that they call in sick to work every couple weeks, call for help constantly, show up late, beat up trucks. This is the same person (driver A) that talks to the supreme driver (driver B)that has been working less time than he has and has the nerve to think he should get paid as much as B because he has been there longer. Long winded but that is the reason.
There are almost no industries anywhere in America that doesn’t frown upon employees talking about their pay with each other. It just shouldn’t happen because frankly some people have earned it more than others. Regardless if you are a driver, accountant, call center rep, retail worker, lineman, welder, etc.
 

bacha29

Well-Known Member
In the end it still comes down to this.With slight variations and adjustments here and there, if you were to compare the overall combined compensation package, wages, OT. vacations, employer funded benefit package etc, of what the average UPS driver gets and what even the most generous contractor has to offer, that XG contractor's compensation package is still only going to be about 60% of what that average UPS driver gets for doing the same volume of work. And that percentage hasn't really changed much over the years because what XG pays it's contractors in terms of settlements it still by and large based on that percentage. And as long as you can procure sufficient quantities of sufficiently productive manpower for that compensation things will proceed normally.....until you no longer can which will in the end happen to every person who currently is or has at one time been a XG contractor.
And you know when that time is coming when as I said earlier you find yourself with 3 guys on every truck. One coming, one driving and one leaving.
 

deadman

Active Member
Don’t talk like you have any idea what most of us do or did. You have no clue!!

Majority of us probably all by now since they were cracking down on it HAVE HANDBOOKS!!!! Most of all this is spelled out along with performance bonuses, paid holidays, paid vacation, wages, and raises. I told everyone when they stated (AT THE SAME PAY!!!) what they had to do to get a raise faster than what was in handbook, which was show up, do your job, get done a head of time so you could take a break or help in the event of issues or breakdowns.
I had 3 employees start at $650 plus bonus my first year I was contracting and within 3 months 1 was making over $800 plus bonus and the other 2 were $750 plus bonus. I think that was a lot better than a typical yearly corporate bonus. And you know why, BECAUSE THEY EARNED IT, and earned respect!
If they did half of what you say, they wouldn’t have been with me a week. Pay them there $650 and boot their ass out the door.

I didn’t really care the length someone was employed the person dictated the wage. If you “couldn’t” do 100+ stops doesn’t matter how long you are employed you will never be $800+ driver because you aren’t hitting the thresholds to pay for yourself. If you can hit 130+ when :censored2: hits the fan and been with me less than a year you are worth way more than the other.


130? those are rookie numbers. Try this with 200 miles of rural.
 

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FedGT

Well-Known Member
Those are pretty decent numbers. HD and ground are a little different in regards to amount of stops. Ground truck with 310 packages will have 8 mattresses, 3- 3 box trampolines, a swing set, living room set, TV, and 2 messaging recliners. Along with the 130 stops there was usually another 20+ pickups of around 200+ boxes.
 
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deadman

Active Member
Those are pretty decent numbers. HD and ground are a little different in regards to amount of stops. Ground truck with 310 packages will have 8 mattresses, 3- 3 box trampolines, a swing set, living room set, TV, and 2 messaging recliners. Along with the 130 stops there was usually another 20+ pickups of around 200+ boxes.

I run ground, well hybrid anyway, we dont split ground and hd anymore..... also please dont remind me about the trampolines.
Put it this way most of peak i had to slam on the brakes at my first stop to shift the load forward enough to open the back door.
 

FedGT

Well-Known Member
I run ground, well hybrid anyway, we dont split ground and hd anymore..... also please dont remind me about the trampolines.
Put it this way most of peak i had to slam on the brakes at my first stop to shift the load forward enough to open the back door.
You are overlapped with 10 Nissans???? What do they have 75-100 packages per truck?
 

deadman

Active Member
Your not getting paid enough
150$ a day under negotiation for a p/s rate for above 100 stops and 200 packages photo doesnt show pickups which those 9 ended up with me taking back 115 packages.
I was wondering how many stops they could fit into those va s. Seen em out after 8 pm
depends entirely on the load 1,000 envelopes, 150 boxes of chewey, ect when i come in on my off day usually i do 60-75 packages on them utilizing around 60% of the space. Highest during peak this year was 115 but mostly smaller since we got a good bit of amazon.

We also are not a unified territory. I go north and run 2 small towns both G and HD, 1 supplemental take half of the res in small town #1 and some of the rural to the south of it, 1 takes the res and rural west of it, i mainly do the big stuff (walmart and prison with their surrounding residential).

small town #2 i have 1 supp that runs outskirts and rural.

we have an east bound p1000 as well who has 2 sups

we have a southest p250 with 1 sup

we have a north west with 2 sups no main

lastly we have a south sprinter with 1 sup as well as a cleanup/support where needed van.

thats not including the f150 we have on standby..... yes we are a total cluster:censored2:
 

It will be fine

Well-Known Member
If what you say is true, then you dont have s problem with the reason I post this discussion. I'm sure all your drivers know why and how you pay what you do. You should have no problem with your drivers discussing wages among gst themselves. This however I would describe as the exception, right?
Many drivers are idiots, they don’t understand the value of paid vacation and holidays. They ask what their pay will be after taxes. They think what the check is after taxes is what they are being paid. They can and do talk about what they make to each other all the time, but it’s mostly the dumb ones that complain. The dumb ones are also the ones that tend to make the least, losing their bonuses, never hitting stop thresholds etc.
 

Exec32

Well-Known Member
I'm sure some of you would pay better and provide benefits to avoid unnecessary turnover. But, I and you know X compensation package will not allow it. The main problem is X doesnt care, and they consider that your problem. X has no incentive to pay you guys more because there is no real value to what you do. X controls everything, and at any time can replace you, then again control everything the new contractor does.
It is an extremely risky proposition. The real irony is X can keep the revenue down intentionally, to ensure this cycle does not end.
 

deadman

Active Member
Many drivers are idiots, they don’t understand the value of paid vacation and holidays. They ask what their pay will be after taxes. They think what the check is after taxes is what they are being paid. They can and do talk about what they make to each other all the time, but it’s mostly the dumb ones that complain. The dumb ones are also the ones that tend to make the least, losing their bonuses, never hitting stop thresholds etc.

agreed having to explain that the employer also pays payroll taxes was fun.... apparently people in their 40s-50s had no idea that if the boss pays 800 pre-tax hes actually spending close to 900.

I'm sure some of you would pay better and provide benefits to avoid unnecessary turnover. But, I and you know X compensation package will not allow it. The main problem is X doesnt care, and they consider that your problem. X has no incentive to pay you guys more because there is no real value to what you do. X controls everything, and at any time can replace you, then again control everything the new contractor does.
It is an extremely risky proposition. The real irony is X can keep the revenue down intentionally, to ensure this cycle does not end.

I honestly believe you have some personal bias and blow out of proportion some of what x does.
If you were correct in that statement x would lose its "investor class" quite quickly and the group who would take over (drivers/managers) would not have the available capital to ensure proper delivery. I have a hard time believing FedEx would sink the only division that continues to grow at a massive rate.
 

deadman

Active Member
I feel as if i'm one of the few non contractors (or former contractors here). Have any of you guys ever tried being honest with your employees? Most of the drivers ive talked to have a general grasp of what it costs to run this business and how you are paid. The problem is (at my sort at least) no contractor will talk about what their p/s rate is or any one of the other ways their paid.

What this has a tendency to lead to is driver a goes to driver b and says "did you know the boss gets 7$ a stop and 5$ a package?" driver b then realizes at 100 stops a day and 200 packages his boss is making $1700-$2000 a day while he is making 120-150.

driver a and b are now pissed and one of two things happen
1. drivers quit because they believe they have been getting screwed.
2. drivers demand raises beyond what their contractor can pay and then quit when the contractor refuses.

maybe... just maybe sitting down and explaining why you cant pay more might benefit you by lowering your turnover which would save you money.
 

FedGT

Well-Known Member
I feel as if i'm one of the few non contractors (or former contractors here). Have any of you guys ever tried being honest with your employees? Most of the drivers ive talked to have a general grasp of what it costs to run this business and how you are paid. The problem is (at my sort at least) no contractor will talk about what their p/s rate is or any one of the other ways their paid.

What this has a tendency to lead to is driver a goes to driver b and says "did you know the boss gets 7$ a stop and 5$ a package?" driver b then realizes at 100 stops a day and 200 packages his boss is making $1700-$2000 a day while he is making 120-150.

driver a and b are now :censored2: and one of two things happen
1. drivers quit because they believe they have been getting screwed.
2. drivers demand raises beyond what their contractor can pay and then quit when the contractor refuses.

maybe... just maybe sitting down and explaining why you cant pay more might benefit you by lowering your turnover which would save you money.
Can’t speak for everyone but yeah I told my manager what the numbers were and employees I would generally give a gist of what it was. Then also let them know the real numbers for fuel, work comp, non trucking liability, general wages, taxes, monthly maintenance, truck payments, etc. letting them know the margins were so slim definitely helped my guys understand the dynamics and pressures. In the X game a contractor grossing $1M can easily be making decent money, little money, or losing money depending on those things. Largest one was maintenance when I first started off with old trucks on life support. Found out that first year it is much better getting new or newer trucks than to keep old international manual transmissions going, especially since 85% of new hires couldn’t drive a stick.
 

FedGT

Well-Known Member
$7 stop and $5 per package??
I would still be contracting in a second and dealing with X if we generated anywhere close to half of that, probably even 1/3 of that.
 

deadman

Active Member
ya its much closer to half that by my understanding its somewhere close to the $3 per stop $1.30 per package not including the other 10 ways of being paid (service bonus, base, oversized,ect) also its less for pickups from my understanding as well.

generally when i give other drivers those numbers (van guys especially) they usually shut up for a few weeks then rinse and repeat.

There is always talk about what ups make compared to us but its generally laughable ups guy in my area is doing far more stops and is micromanaged to absolutely absurd levels. ill take less pay to not have to deal with that.

just for my truck i assume a day expense of close to 40 for purchase price, 40 for fuel, 40 for maintenance 30 for insurance and 165 for my base(payroll tax included) so $315 per day expenses which for the most part don't change (150 stops only costs a few dollars more in gas and maintenance vs 50)

At the p/s rate i have figured my average 110 stops, 240 packages, with 10 pickups and 80 packages my contractor is pulling around $800 before any payments from x that i dont have the foggiest idea what they add up to. on the reverse though we have 10 vans that average 55 stops and 70 packages a day ie they only break even and commonly lose money.
 

FedGT

Well-Known Member
ya its much closer to half that by my understanding its somewhere close to the $3 per stop $1.30 per package not including the other 10 ways of being paid (service bonus, base, oversized,ect) also its less for pickups from my understanding as well.

generally when i give other drivers those numbers (van guys especially) they usually shut up for a few weeks then rinse and repeat.

There is always talk about what ups make compared to us but its generally laughable ups guy in my area is doing far more stops and is micromanaged to absolutely absurd levels. ill take less pay to not have to deal with that.

just for my truck i assume a day expense of close to 40 for purchase price, 40 for fuel, 40 for maintenance 30 for insurance and 165 for my base(payroll tax included) so $315 per day expenses which for the most part don't change (150 stops only costs a few dollars more in gas and maintenance vs 50)

At the p/s rate i have figured my average 110 stops, 240 packages, with 10 pickups and 80 packages my contractor is pulling around $800 before any payments from x that i dont have the foggiest idea what they add up to. on the reverse though we have 10 vans that average 55 stops and 70 packages a day ie they only break even and commonly lose money.
I haven’t been contracting for quite a bit now and have no idea what the contracts have changed to especially with ISP but I think it would be safe to say you could probably cut that in half again and probably still too high.
 

dmac1

Well-Known Member
just for my truck i assume a day expense of close to 40 for purchase price, 40 for fuel, 40 for maintenance 30 for insurance and 165 for my base(payroll tax included) so $315 per day expenses which for the most part don't change .

So you pay a bottom level wage that would be almost impossible to live on. I was paying HD drivers a base of $125 plus a bonus for going over a certain mileage or stop number. And that was more than 10 years ago. I made maybe $10 a day in 'profit' from each driver and even showed them my checks.
 
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