Discussion in 'FedEx Discussions' started by blacksox, Jul 9, 2019.
Former FedEx insider says separate operations don't make sense - The Daily Memphian
its all about the union and cost controls. bring ground under the express umbrella and the "we're an airline lul" moniker dies horribly.
Pay attention to what Fat Freddy is telling you. The current compressed margins at Express is something he believes is only temporary and doesn't even begin to justify the expense, labor unrest and potential service disruptions that attempting to merge the two operating units is certain to create.....And he's right.
What you're more likely to see at Ground is something along these lines......Many terminal buildings were built by third party developers and leased to X. Now look for X to turn over those satellite terminals building leases or sold outright to third party operators who will run all final mile operations for the geographical areas over which they have control. X will continue to own the hubs and manage line haul .Something along these lines could be in the works and might help explain the one year contracts. Going forward only those with deep pockets will to do business with Fat Freddy.
Remember Ground contractors are really nothing more than suppliers with precarious and very ambiguous short term supply agreements .
Without the RLA exemption, Express is ripe for the picking. All it takes is for a few ramps to organize and go on strike. Or worse, one of the hubs.
But Express won't lose that RLA exemption as long as Ground stays separate from Express correct? So could Ground unionize on their own since they aren't part of the RLA? If so, I don't know why they haven't already. I know they are considered contractors, but it's all smoke and mirrors. They are FedEx employees when it comes down to it since they drive vehicles with FedEx on the side and wear FedEx clothing.
Then FedEx would be forced into a binding contract!
OH THE HUMANITY!
Think of it like franchising. McDonalds employees have to wear the uniform, have McDs on the side, act like a corporate McDs, yet it's owned by a third party.
Now, trying to get a bunch of part time package handlers to unionize.. hah.
Contractor employed drivers can go union on a local by local basis because they are under Taft Hartley/ National Labor Relations Act. However if they were the contractor would find his trucks pulled outside and a termination notice slapped on the windshields so fast it will make your head spin. In addition contractors have to sign a nondisclosure agreement barring them from discussing contract terms with other contractors. And of course contractors can't join a labor union themselves because technically they are the employer not the employee.
What will be the downfall of contractors and you're seeing it happen already is that every labor market has a limited supply of cheap, zero benefit fast food wage labor and if you were to go to the nationwide job boards you'll see scores of desperate contractors begging for that type of labor . They're addicted to the stuff and the funny part is no matter what part of the country you're talking about or how high the living cost from the standpoint of pay offered there's only about a 100 bucks a week difference no matter where you live.
I think that was trued once in the Northeast. It got squashed by Ground HQ who sent down some thugs to “straighten those handlers out.” The Teamsters quickly dropped support and ran away like scared rabbits.
Package handlers in some smaller terminals are staffing agency meat . 2.5 hours in AM and PM at about 12 bucks an hour.
Let's say you drive for XYZ Transport, which is a contractor for Ground at their Anytown, USA terminal. You and your fellow XYZ Transport employees at the Anytown, USA terminal could unionize against your employer, XYZ Transport.
The actual Ground handlers could unionize against Ground if they wanted.
At some point, McDonald's corporation was found to be a co-employer under some circumstances. Right now, no one seems to have an appetite for taking on another 14 year long legal battle against fedex.
For what it’s worth, Fedex contracting is now SBA approved.
They are a little bit of a pain in the ass but it is good to have that option. They take all titles to vehicles for as much collateral as possible and on our deal they still wanted 25% down. My buyer didn’t have that much so I carried a 20% note. I didn’t want anything to do with a note but the buyer was paying what I thought was about 20% higher than I would sell it for to the retail public so it was worth the gamble.
On that note though they made me sign a document promising not to take any payment for two years. It was a little stressful for that two years but all in all it was definitely worth it and gives you a much larger buyers pool.
I seem to recall the package handlers in Brockton MA attempting this in 2011... the teamsters ultimately sold them out and cancelled the vote.
Teamsters probably figured the juice wasn’t worth the squeeze.
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