Fred Understates Income By 30.2 Million

stevetheupsguy

sʇǝʌǝʇɥǝndsƃnʎ
Fox News is "fair and balanced"? Give me a freaking break. O'Reilly, Hannity, and Beck are anything but fair, and they are hardly balanced. In fact,all three of them have serious issues with reality. Why not just call Fox what it really is,The Republican Excuse Network. If it's Conservative or Republican, Fox is OK with it. If it's liberal or Left-Wing, it's Socialism on the move.

I still have difficulty understanding how anyone who works for an hourly wage can be a Republican. They are all about being anti-labor, anti-union, and anti-worker. If you work for UPS or FedEx, they definitely do NOT have your best interests in mind. If Conservatives could import illegal aliens to do your job for $4.00 per hour they would, and then they'd justify it by saying that business owners could "generate more high-wage jobs through trickle-down economics". What a bunch of crap! Republicans are the party of Big Business and Big Religion, and screw anyone who doesn't feel the same way. The Republican Party is the party of the Fred Smiths of the business world. They don't give a rat's ass about working people, only the upper classes. If you are dumb enough to make the rich richer at your expense, please feel free to continue to be a tool for the wealthy.

I'm glad the Republican Party is in the toilet, and judging from their current actions, they are doing their level best to flush themselves at every opportunity. Rush is leading you straight into oblivion.
There's more to the Republican party, than the people you mentioned. What if Fred was a democrat, would that make you feel better? Does everyone have to be a Democrat? Just a curiosity, not trying to slam you, buddy.

Steve, drewed is the father!
LOL, so that's where he's been!
 

MrFedEx

Engorged Member
This would never happen, but let's say FedEx bought UPS and you were forced to de-certify and become non-union. Do you think that your wage and benefit package would be as good as it is now? No way. Conservatives hate the Teamsters, collective bargaining, and the right to grieve issues with the company. Fred, being a good Conservative, would instantly strip you of these evil commie benefits because it would be for your own good. Then you could pull yourself up Horatio Alger-style and become another Fred S free market capitalist hero. Yeah, right...

If Smith were a Democrat, I'd feel the same way about him. There are plenty of shady and dishonest Democrats too. But Republicans are all about people like Smith, and he is very strongly attached to the Republican Party.

At FedEx, we've been slowly but gradually squeezed until we're barely hanging onto being part of the middle class. In the meantime, Fred and the upper crust at FedEx have been raking in millions. By eliminating our retirement plan,keeping wages low,stringing-out top out times to about 12 years, and other "games" that screw us over, he's added even more to his take. And as far as Republicans are concerned, that's just fine.

What Conservatives fail to realize is that by not paying middle-class wages, workers can no longer buy homes, cars, and the other consumer items that keep our economy healthy. While the CEO's get fat, we starve, and keep driving that old clunker instead of the new model we could afford if wages had kept pace with inflation and the growth of corporate profits.

Smith has continuously cut us back, even when FedEx planes were full and record profits were being earned. Screwing us is part and parcel (pun intended) of a Conservative philosophy that values management and de-values labor.
 

Testicular Fortitude

Well-Known Member
This would never happen, but let's say FedEx bought UPS and you were forced to de-certify and become non-union. Do you think that your wage and benefit package would be as good as it is now? No way. Conservatives hate the Teamsters, collective bargaining, and the right to grieve issues with the company. Fred, being a good Conservative, would instantly strip you of these evil commie benefits because it would be for your own good. Then you could pull yourself up Horatio Alger-style and become another Fred S free market capitalist hero. Yeah, right...

If Smith were a Democrat, I'd feel the same way about him. There are plenty of shady and dishonest Democrats too. But Republicans are all about people like Smith, and he is very strongly attached to the Republican Party.

At FedEx, we've been slowly but gradually squeezed until we're barely hanging onto being part of the middle class. In the meantime, Fred and the upper crust at FedEx have been raking in millions. By eliminating our retirement plan,keeping wages low,stringing-out top out times to about 12 years, and other "games" that screw us over, he's added even more to his take. And as far as Republicans are concerned, that's just fine.

What Conservatives fail to realize is that by not paying middle-class wages, workers can no longer buy homes, cars, and the other consumer items that keep our economy healthy. While the CEO's get fat, we starve, and keep driving that old clunker instead of the new model we could afford if wages had kept pace with inflation and the growth of corporate profits.

Smith has continuously cut us back, even when FedEx planes were full and record profits were being earned. Screwing us is part and parcel (pun intended) of a Conservative philosophy that values management and de-values labor.
Sorry but you are dead wrong on one item in this statement.Any courier who is not at top pay ,hourly wage,will never reach top pay.The system is set up that new hires and employees who are not at top pay will never achieve top pay.
 

Broke

Well-Known Member
Sorry but you are dead wrong on one item in this statement.Any courier who is not at top pay ,hourly wage,will never reach top pay.The system is set up that new hires and employees who are not at top pay will never achieve top pay.
I agree, my pay has only gone up about $2.70 in 6 years as a courier.
 

MrFedEx

Engorged Member
Sorry but you are dead wrong on one item in this statement.Any courier who is not at top pay ,hourly wage,will never reach top pay.The system is set up that new hires and employees who are not at top pay will never achieve top pay.


Sorry, you're right. The plan is for nobody to ever reach top wage. I've heard that new hires don't even get split-shift premium anymore. What a great company!! PSP is alive and well (People Screwing People).
 

Testicular Fortitude

Well-Known Member
I agree, my pay has only gone up about $2.70 in 6 years as a courier.
Broke,one word of advice to any Fedex Express express division courier who has 10 years or less with the company and under 30 years old look for a full time job and downgrade to part time at Fedex.You will never achieve top pay unless every single express courier smartens up and votes for union representation.
 

Testicular Fortitude

Well-Known Member
Sorry, you're right. The plan is for nobody to ever reach top wage. I've heard that new hires don't even get split-shift premium anymore. What a great company!! PSP is alive and well (People Screwing People).
I totally agree with your PSP statement.The Purple Promise is more propaganda being shoveled out of the Memphis Kremlim.Fred must be suffering from dementia or Alzheimers because all of his statements are totally opposite of what actually happens.It seems that they are trying to destroy the Express division by giving our customers lousy service at premium prices.How can any courier do more stops per hour in larger delivery areas in basically the same amount of time without sacrificing service to our customers.
 

Broke

Well-Known Member
Broke,one word of advice to any Fedex Express express division courier who has 10 years or less with the company and under 30 years old look for a full time job and downgrade to part time at Fedex.You will never achieve top pay unless every single express courier smartens up and votes for union representation.
Does it look like your station would vote the union in if given the opportunity? It's a close call at my location, but I'm doing all I can do to educate everyone on what's going on in congress with the Faa reauthorization bill.
 

Ricochet1a

Well-Known Member
Looking at the latest addition to the station bulletin board, there was a list of benefits that are “bestowed” upon the hourly employees. In parentheses next to the retirement and health benefits, was a little statement to the effect that FedEx isn’t required by law to “offer” these benefits.

If FedEx is making a list of our benefits, then trying to play the game of stating “these benefits are not required by law”; what in the heck are they trying to pull. There was a little statement next to the health benefit stating that FedEx’s health benefit was “competitive” and encouraging us to do some inquiries to verify the assertion. What have they been smoking in Memphis?

We pay almost $200 a month in premiums for insurance for our families, and still get stuck with co-pays that are not insubstantial. The benefits match up really well against any fast food chain, but in comparison to FedEx’s nearest competitor (UPS), who are they kidding? There are still couriers that think this is just a symptom of the latest economic storm, and don’t want to rock the boat (unionize). At this point, what else is left to lose? Our dignity and self-respect?

I’m convinced from information I’ve received from friends in Memphis that FedEx’s plan is to go to a near exclusive part-time work force in DGO (already have a 90% part-time work force in AGFS due to the nature of the work there). I’m on my way out, but before I go, I’d like to get the “traditional” pension plan restored so I have something to show for the years I’ve been at FedEx. I know the Teamsters are biding their time waiting for the RLA exemption to be lifted, but we need to start getting some sort of organization efforts going. I’m confident that when a majority of Couriers (and hopefully mechanics) indicate they want collective bargaining, FedEx will stall and stammer trying to avoid negotiating with a union; until they can implement their “doomsday” plan (phase out full-time Couriers and go to a part-time force).

I’m convinced that the full-time Courier is a soon to be thing of the past, replaced by two pools of part-time Couriers, AM and PM. The AM will deliver overnight, and the PM will pick up like they do now. Non-overnight will be transferred to Ground in the evening it arrives at its destination ramp, and will be sorted by Ground personnel and delivered by either Ground or Home Delivery. From a strict cost basis, it is the only thing that makes sense. An average Express Courier receives in compensation (wages, benefits, etc), about $25/hr all things considered. An UPS driver receives about $37+/hr all things considered (wages, top-tier benefit package and a real retirement package). FedEx Ground “helpers” receive maybe $13/hr, with no benefits or retirement. If Fred can cut his labor cost in half for some portion of the package delivery scheme, why wouldn’t he?

A lot of full-time Couriers are worried about the possibility of being forced into part-time status if they vote to unionize. Fred is going to do it sooner or later, so we might as well have a retirement plan that we hired-in with in effect, when we walk out the door. Fred’s vision is to have college students in the afternoon, and people wanting supplemental income come in the morning to get his packages moved from the customers to AGFS. From my standpoint, the full-time couriers that are struggling with whether or not to sign the card this autumn are in denial. The full-time Courier is going to be a thing of the past (as long as Fred is running things). The only variable is whether or not we get some representation in place to get the pension plan restored under contract (which cannot be unilaterally changed by FedEx).

This is what FedEx fears this year, a strike by it Couriers late in the year (and hopefully joined by the mechanics, which would shut down operations). Fred would have to negotiate if both crafts unionized and hit the picket lines this autumn. The goal wouldn’t be to get a pay increase (as far as the Couriers are concerned), but rather a restoration of the pension, and a 4-6 year top out (with retroactive provisions, meaning virtually all Couriers would be topped out). This would give us a decent pension plan in hand (protected by negotiated contract, enforceable by Federal law), so that when Fred reorganizes Express (which he will most certainly do anyway), we will have something to show for our time.

Those that know the monthly expense of the retiree health insurance know that is a non-starter, especially with the current joke of a pension that FedEx Is offering. It would be tantamount to signing over whatever we received as far as a pension, to pay the premium for health insurance. We need to have the traditional pension plan restored, so we can afford to pay for whatever health insurance we choose outside of FedEx until we’re forced in to Medicare. As soon as the “career” DGO workforce recognizes that their career is about to disappear, and decides we need to get something to hold on to as we either walk out the door or are booted out, the better.
 

Broke

Well-Known Member
Looking at the latest addition to the station bulletin board, there was a list of benefits that are “bestowed” upon the hourly employees. In parentheses next to the retirement and health benefits, was a little statement to the effect that FedEx isn’t required by law to “offer” these benefits.

If FedEx is making a list of our benefits, then trying to play the game of stating “these benefits are not required by law”; what in the heck are they trying to pull. There was a little statement next to the health benefit stating that FedEx’s health benefit was “competitive” and encouraging us to do some inquiries to verify the assertion. What have they been smoking in Memphis?

We pay almost $200 a month in premiums for insurance for our families, and still get stuck with co-pays that are not insubstantial. The benefits match up really well against any fast food chain, but in comparison to FedEx’s nearest competitor (UPS), who are they kidding? There are still couriers that think this is just a symptom of the latest economic storm, and don’t want to rock the boat (unionize). At this point, what else is left to lose? Our dignity and self-respect?

I’m convinced from information I’ve received from friends in Memphis that FedEx’s plan is to go to a near exclusive part-time work force in DGO (already have a 90% part-time work force in AGFS due to the nature of the work there). I’m on my way out, but before I go, I’d like to get the “traditional” pension plan restored so I have something to show for the years I’ve been at FedEx. I know the Teamsters are biding their time waiting for the RLA exemption to be lifted, but we need to start getting some sort of organization efforts going. I’m confident that when a majority of Couriers (and hopefully mechanics) indicate they want collective bargaining, FedEx will stall and stammer trying to avoid negotiating with a union; until they can implement their “doomsday” plan (phase out full-time Couriers and go to a part-time force).

I’m convinced that the full-time Courier is a soon to be thing of the past, replaced by two pools of part-time Couriers, AM and PM. The AM will deliver overnight, and the PM will pick up like they do now. Non-overnight will be transferred to Ground in the evening it arrives at its destination ramp, and will be sorted by Ground personnel and delivered by either Ground or Home Delivery. From a strict cost basis, it is the only thing that makes sense. An average Express Courier receives in compensation (wages, benefits, etc), about $25/hr all things considered. An UPS driver receives about $37+/hr all things considered (wages, top-tier benefit package and a real retirement package). FedEx Ground “helpers” receive maybe $13/hr, with no benefits or retirement. If Fred can cut his labor cost in half for some portion of the package delivery scheme, why wouldn’t he?

A lot of full-time Couriers are worried about the possibility of being forced into part-time status if they vote to unionize. Fred is going to do it sooner or later, so we might as well have a retirement plan that we hired-in with in effect, when we walk out the door. Fred’s vision is to have college students in the afternoon, and people wanting supplemental income come in the morning to get his packages moved from the customers to AGFS. From my standpoint, the full-time couriers that are struggling with whether or not to sign the card this autumn are in denial. The full-time Courier is going to be a thing of the past (as long as Fred is running things). The only variable is whether or not we get some representation in place to get the pension plan restored under contract (which cannot be unilaterally changed by FedEx).

This is what FedEx fears this year, a strike by it Couriers late in the year (and hopefully joined by the mechanics, which would shut down operations). Fred would have to negotiate if both crafts unionized and hit the picket lines this autumn. The goal wouldn’t be to get a pay increase (as far as the Couriers are concerned), but rather a restoration of the pension, and a 4-6 year top out (with retroactive provisions, meaning virtually all Couriers would be topped out). This would give us a decent pension plan in hand (protected by negotiated contract, enforceable by Federal law), so that when Fred reorganizes Express (which he will most certainly do anyway), we will have something to show for our time.

Those that know the monthly expense of the retiree health insurance know that is a non-starter, especially with the current joke of a pension that FedEx Is offering. It would be tantamount to signing over whatever we received as far as a pension, to pay the premium for health insurance. We need to have the traditional pension plan restored, so we can afford to pay for whatever health insurance we choose outside of FedEx until we’re forced in to Medicare. As soon as the “career” DGO workforce recognizes that their career is about to disappear, and decides we need to get something to hold on to as we either walk out the door or are booted out, the better.
Excellent post. one thing to consider is if we vote the teamsters in, then we can try to negotiate in our contract that Express gets to keep all x'saver and 2day pkgs.If Fred wants to try to outsource everything to Ground then I believe the pilots (who are already unionized) and the mechanics will go to bat with us on that issue.
 

Ricochet1a

Well-Known Member
When FedEx begins to outsource to Ground/Home Division; AGFS will hardly notice any difference. The line haul system will remain virtually unchanged. The pilots and mechanics won’t notice any change, and the ramp crews loading and unloading the aircraft won’t notice a change. The only change within AGFS will be the PM sort work groups, they will be virtually eliminated. Cargo containers will be able to be taken off the aircraft, and loaded directly onto roller bed trailers for transport to Ground terminals for sorting by Ground employees.

Express will still pickup all “express” packages, divide it between overnight and 2nd/3rd day for loading, and send it on its way to the ramps. The ramps will send off overnight cargo in the early evenings, the hubs will sort it and it will continue to the destination ramps. The 2nd/3rd day cargo will be sent to the hubs on the returning aircraft (in some locations 3rd day cargo will be moved by tractor trailer), and it will be sorted and then sent on to the destination ramps. Here is where the change within AGFS will occur. Once the cans are taken off the aircraft in the PM; there would be no need for Express employee handlers to sort it by station. The loaded cargo containers from the hubs can be transported directly to the Ground terminals, where Ground employees (who are paid less than Express handlers) can sort the packages. The commit time for non-overnight packages would enable Ground to integrate the delivery of these pieces within their routes with minimal change in their route system. With the slight bump in volumes for Ground, additional routes (helpers…) could be added to Ground, to enable commit times to be maintained.

Express Couriers would only deliver overnight packages under this scheme. The ramps would conduct their AM sort as they do currently, and then transport the freight to the delivering stations. Here is where the next change FedEx is implementing would show itself. With the ROADS system, the AM sort can be run with handlers that don’t know a thing about the actual routes or route boundaries. The little white label that I’m sure most of you have seen on Ground packages that you may have had delivered to your residence allows handlers to pull packages to be loaded onto deliver y trucks by looking at the route number on the label. The label also assists handlers in placing the packages into stop order, since the computer software has a predetermined route path built into its matrix.

Right now, Express is having some technical glitches in the implementation of the ROADS system. The software cannot quickly differentiate between route boundaries, so route balancing isn’t possible with the current software. However, with continued refining of the software, the ability to balance routes will be solved. This could be easily accomplished by coding drop zones into the route assignment matrix, and then balancing loads once the majority of the freight has been loaded onto delivery trucks. Once this is ironed out, Couriers (who are paid more than handlers) won’t be needed to run the AM sorts. Lower paid Handlers can run the AM sort, and get the trucks loaded. The Couriers would only need to pre-trip their vehicles, and then leave the building, much as UPS drivers do now.

A change to the software within the Power-pad would enable Handlers to perform the “van-scans” when loading the packages, along with having the information entered as to which address is indicated for each package. The Couriers would no longer need to know what stops they have to make. The data in the Power-pad would indicate the next address to deliver, and how many pieces are to be delivered to that stop. The Courier would make the stop, make sure they took the indicated number of pieces (as indicated by Power-pad software) and perform a POD. Courier productivity would increase.

Since only overnight volume would be delivered by Express Couriers, they could all be turned into part-time employees to accomplish their deliveries. Since they wouldn’t be working the sort, it would be quite possible for them to clock-in, pre-trip their vehicle, get the download from the van scans into the vehicle and start their route. They could accomplish their route and be back at the station within 6 hours easily (and probability within 4.5 to 5 hours). With the non-overnight volume being taken off Express, Standard Overnight commit times could be advanced by a few hours, giving a further competitive advantage to Express in overnight shipping. With AM delivery routes being able to get their freight off within 4.5 to 5 hours, no overtime would be incurred by Express; further reducing cost structure for Express. From a strict business stand point, it makes sense. From a “PSP” stand point, the career Courier is being thrown under their truck, so to say.

As far as what goals to give any contract negotiators in a contract negotiation; trying to keep non-overnight volume within Express would be a definite goal for current Couriers (it is our “rice bowl” so to say). But let’s get real; the pilots don’t give a darn about the work conditions of other Express employees. They (along with UPS pilots) are the highest paid pilots in the US airline industry. As long as the line haul system isn’t changed, they have no reason to worry about how the delivery scheme is made. They are making their money flying the aircraft. How the packages are delivered are of no concern to them. Push for too much in a contract, and a lock-out is what will happen.

This is why I’m convinced that the only realistic option for a contract would be the restoration of the “traditional pension plan”, a 4 year top out for Couriers (applied retroactively) and possibly an increase in the “contributions” Express makes toward the cost of health benefits (reducing our premiums). Any other “goodies” thrown into the negotiation would only invite either a lock-out, or the introduction of Ground drivers into the Express network to break a strike. Even with a successful unionization, not all Couriers would join the Union, or honor a strike if the unionized Couriers did indeed choose to hit the picket lines. This is why a concerted strike with both Couriers and Mechanics would be necessary for any chance of success.

A strike by just the Couriers would be defeated by FedEx. There would simply be too many Couriers which would cross a picket line, and FedEx could lure enough current Ground “helper drivers” to get their volume delivered. Fred would throw a bone to the non-unionized Couriers to get enough to come in to keep Express operating. This is why concerted action with the mechanics would be necessary to have any chance of success. The mechanics had their pension gutted too, and they’re none too happy right now. If they were to organize and strike at the same time as the Couriers, FedEx would have no choice but to return to the “traditional pension plan”.

As far as getting guarantees for Express to maintain a certain amount of full-time Couriers, or to keep all Express volume within the Express network, that would be doubtful. The mechanics want their pension restored and a cessation of out-sourcing of maintenance. They could be successful in accomplishing this if they organized. As far as the Couriers are concerned, we’d be “piggy-backing” off the mechanics in a strike. Express will eventually change its business model, to having its DGO operation run by primarily part-time employees, nothing is going to change that. Fred has seen the cost structure of Ground, and he likes what he sees. He can’t try the charade of having Express employees work as Independent Contractors, but he can reduce his cost structure to squeeze out labor costs. By shifting volumes to Ground, and moving Express delivery operations into a part-time scheme, he can reduce costs, while maintaining the “illusion” to customers of a seamless network. Remember, most customers don’t have a clue that Ground and Express are separate operating companies. They look at the UPS model, and assume that FedEx is a completely integrated company. Whether their packages are delivered by someone with a FedEx truck with its logo painted in green or orange makes no difference.

Fred has created a parallel package delivery operation to Express; and its cost structure is a fraction of Express’. With the implementation of technology (ROADS) and new Power-pad software, he can squeeze even more cost out of his labor expense. No union is going to stop this. The only thing that can happen is for a union to restore the pension plan to the employees that built Express, so they can have something to show for their years of effort and commitment. Once all the bugs have been ironed out of ROADS, it will be too late. Express will begin to implement a part-time work scheme, and any attempt by Couriers to organize then would be met with a lock-out. All Fred would have to do, is to open the hiring spigot, and get in a flood of college students and people who want part-time work with some semblance of health insurance, to fill out the staffing requirements. The customers would (presumably) not notice any change in their service, and FedEx would have reduced their labor costs even more.
 

Broke

Well-Known Member
When FedEx begins to outsource to Ground/Home Division; AGFS will hardly notice any difference. The line haul system will remain virtually unchanged. The pilots and mechanics won’t notice any change, and the ramp crews loading and unloading the aircraft won’t notice a change. The only change within AGFS will be the PM sort work groups, they will be virtually eliminated. Cargo containers will be able to be taken off the aircraft, and loaded directly onto roller bed trailers for transport to Ground terminals for sorting by Ground employees.

Express will still pickup all “express” packages, divide it between overnight and 2nd/3rd day for loading, and send it on its way to the ramps. The ramps will send off overnight cargo in the early evenings, the hubs will sort it and it will continue to the destination ramps. The 2nd/3rd day cargo will be sent to the hubs on the returning aircraft (in some locations 3rd day cargo will be moved by tractor trailer), and it will be sorted and then sent on to the destination ramps. Here is where the change within AGFS will occur. Once the cans are taken off the aircraft in the PM; there would be no need for Express employee handlers to sort it by station. The loaded cargo containers from the hubs can be transported directly to the Ground terminals, where Ground employees (who are paid less than Express handlers) can sort the packages. The commit time for non-overnight packages would enable Ground to integrate the delivery of these pieces within their routes with minimal change in their route system. With the slight bump in volumes for Ground, additional routes (helpers…) could be added to Ground, to enable commit times to be maintained.

Express Couriers would only deliver overnight packages under this scheme. The ramps would conduct their AM sort as they do currently, and then transport the freight to the delivering stations. Here is where the next change FedEx is implementing would show itself. With the ROADS system, the AM sort can be run with handlers that don’t know a thing about the actual routes or route boundaries. The little white label that I’m sure most of you have seen on Ground packages that you may have had delivered to your residence allows handlers to pull packages to be loaded onto deliver y trucks by looking at the route number on the label. The label also assists handlers in placing the packages into stop order, since the computer software has a predetermined route path built into its matrix.

Right now, Express is having some technical glitches in the implementation of the ROADS system. The software cannot quickly differentiate between route boundaries, so route balancing isn’t possible with the current software. However, with continued refining of the software, the ability to balance routes will be solved. This could be easily accomplished by coding drop zones into the route assignment matrix, and then balancing loads once the majority of the freight has been loaded onto delivery trucks. Once this is ironed out, Couriers (who are paid more than handlers) won’t be needed to run the AM sorts. Lower paid Handlers can run the AM sort, and get the trucks loaded. The Couriers would only need to pre-trip their vehicles, and then leave the building, much as UPS drivers do now.

A change to the software within the Power-pad would enable Handlers to perform the “van-scans” when loading the packages, along with having the information entered as to which address is indicated for each package. The Couriers would no longer need to know what stops they have to make. The data in the Power-pad would indicate the next address to deliver, and how many pieces are to be delivered to that stop. The Courier would make the stop, make sure they took the indicated number of pieces (as indicated by Power-pad software) and perform a POD. Courier productivity would increase.

Since only overnight volume would be delivered by Express Couriers, they could all be turned into part-time employees to accomplish their deliveries. Since they wouldn’t be working the sort, it would be quite possible for them to clock-in, pre-trip their vehicle, get the download from the van scans into the vehicle and start their route. They could accomplish their route and be back at the station within 6 hours easily (and probability within 4.5 to 5 hours). With the non-overnight volume being taken off Express, Standard Overnight commit times could be advanced by a few hours, giving a further competitive advantage to Express in overnight shipping. With AM delivery routes being able to get their freight off within 4.5 to 5 hours, no overtime would be incurred by Express; further reducing cost structure for Express. From a strict business stand point, it makes sense. From a “PSP” stand point, the career Courier is being thrown under their truck, so to say.

As far as what goals to give any contract negotiators in a contract negotiation; trying to keep non-overnight volume within Express would be a definite goal for current Couriers (it is our “rice bowl” so to say). But let’s get real; the pilots don’t give a darn about the work conditions of other Express employees. They (along with UPS pilots) are the highest paid pilots in the US airline industry. As long as the line haul system isn’t changed, they have no reason to worry about how the delivery scheme is made. They are making their money flying the aircraft. How the packages are delivered are of no concern to them. Push for too much in a contract, and a lock-out is what will happen.

This is why I’m convinced that the only realistic option for a contract would be the restoration of the “traditional pension plan”, a 4 year top out for Couriers (applied retroactively) and possibly an increase in the “contributions” Express makes toward the cost of health benefits (reducing our premiums). Any other “goodies” thrown into the negotiation would only invite either a lock-out, or the introduction of Ground drivers into the Express network to break a strike. Even with a successful unionization, not all Couriers would join the Union, or honor a strike if the unionized Couriers did indeed choose to hit the picket lines. This is why a concerted strike with both Couriers and Mechanics would be necessary for any chance of success.

A strike by just the Couriers would be defeated by FedEx. There would simply be too many Couriers which would cross a picket line, and FedEx could lure enough current Ground “helper drivers” to get their volume delivered. Fred would throw a bone to the non-unionized Couriers to get enough to come in to keep Express operating. This is why concerted action with the mechanics would be necessary to have any chance of success. The mechanics had their pension gutted too, and they’re none too happy right now. If they were to organize and strike at the same time as the Couriers, FedEx would have no choice but to return to the “traditional pension plan”.

As far as getting guarantees for Express to maintain a certain amount of full-time Couriers, or to keep all Express volume within the Express network, that would be doubtful. The mechanics want their pension restored and a cessation of out-sourcing of maintenance. They could be successful in accomplishing this if they organized. As far as the Couriers are concerned, we’d be “piggy-backing” off the mechanics in a strike. Express will eventually change its business model, to having its DGO operation run by primarily part-time employees, nothing is going to change that. Fred has seen the cost structure of Ground, and he likes what he sees. He can’t try the charade of having Express employees work as Independent Contractors, but he can reduce his cost structure to squeeze out labor costs. By shifting volumes to Ground, and moving Express delivery operations into a part-time scheme, he can reduce costs, while maintaining the “illusion” to customers of a seamless network. Remember, most customers don’t have a clue that Ground and Express are separate operating companies. They look at the UPS model, and assume that FedEx is a completely integrated company. Whether their packages are delivered by someone with a FedEx truck with its logo painted in green or orange makes no difference.

Fred has created a parallel package delivery operation to Express; and its cost structure is a fraction of Express’. With the implementation of technology (ROADS) and new Power-pad software, he can squeeze even more cost out of his labor expense. No union is going to stop this. The only thing that can happen is for a union to restore the pension plan to the employees that built Express, so they can have something to show for their years of effort and commitment. Once all the bugs have been ironed out of ROADS, it will be too late. Express will begin to implement a part-time work scheme, and any attempt by Couriers to organize then would be met with a lock-out. All Fred would have to do, is to open the hiring spigot, and get in a flood of college students and people who want part-time work with some semblance of health insurance, to fill out the staffing requirements. The customers would (presumably) not notice any change in their service, and FedEx would have reduced their labor costs even more.
I think if couriers, mechanics, and freight drivers are unionized around the same time, we'll have more leverage than you think.
 

Ricochet1a

Well-Known Member
As with all airline pilots, FedEx pilots are unionized. However, that doesn’t necessarily mean that they would honor a strike by Couriers or RTD’s (ramp transport drivers). They would honor a strike by the mechanics, since their lives are dependent on the work the mechanics perform. This gets into the politics of which union would honor another union’s picket line. This is why I stated that any attempt by FedEx employees to unionize, is dependent on what the mechanics would do.

FedEx has a ready supply of Courier replacements (strike breakers) available… Ground and Home Delivery drivers/helpers. Express is about 80% of the revenue for FedEx Corporation, but Ground has about as many package handling/delivering employees as Express does. In the event of unionization, and impending strike by Couriers and RTD’s, FedEx would protect its primary source of revenue… Express. I’m sure part of FedEx’s plan would be to bring Ground personnel over to Express, in order to keep Express volume moving. Ground is only about 10% of FedEx Corporation’s overall revenue flow. Shipping to and from commercial clients could be performed on a skeleton staff, and home delivery operations greatly scaled back. The simplest solution would be to integrate a day of delay to delivery times, and perform alternating day service to commercial clients. Certain customers would be serviced M-W-friend, and others would be serviced Tu-Th.

I know many RTD’s that are of the opinion that they are irreplaceable in the event they choose to strike. Not true. In the current environment (for the coming 12 to 18 months at least), there is a surplus of trained tractor-trailer drivers. In the eventuality of successful organization, and forced negotiation for a contract for Couriers/RTD’s, Express would implement a “war plan” of their own. Express would negotiate contingency contracts with non-unionized motor carriers, to provide personnel to move Express volume that the RTD’s currently perform. It would cost Express revenue, but all strikes cost corporations revenue. The intent would be to break the strike quickly, and de-certify the union.

This is why organizing is the only chance FedEx employees have to restore their pension, but anything beyond that is more wishful thinking at this stage. If the economy was doing well, FedEx employees would stand a better chance. Trying to go from a state of no union, to organizing, forcing a contract negotiation to having a successful contract all in the current environment is daunting. Right now FedEx is sitting on about $2 BILLION of cash reserves and lines of credit. They have a fairly formidable war chest to use in the event of a strike. The FedEx hourly employees have a strike fund of just under nothing. A successful strike would require the Teamsters to make a substantial loan to the “FedEx” strikers, to keep financially strapped employees from crossing the picket line to get back their paycheck. Years ago a similar loan was made so that the UPS strike would be successful. Since the AFL-CIO split a few years ago, it is doubtful if such an arrangement could or would be made now.

Most FedEx employees are still under the “delusion” that a union would turn back the clock by 15 years; a return to 4 year top-outs, a real pension, benefits that don’t cost 2 days of post-tax wages each month and a stable career opportunity. FedEx has seen the cost savings of having the charade of independent contractors perform delivery operations. The courts haven’t slapped down the charade, and FedEx is confident it can go to a near total part-time hourly work force to meet its needs. I’m sure the part-time work force will be unionized, but I’m also sure that the day of the career full time courier is coming to a close. If they can get away with paying Ground drivers $13/hr to move packages, they definitely can get away with paying Express couriers $17-20/hr part-time (including cost of health insurance, etc.); instead of the $25/hr average with all benefits that they are now paying.

This is why I’m convinced that the only thing Express employees can do is to organize quickly, and stage a massive and nationwide strike; which would be beyond the capability of FedEx to compensate against. There is one thing FedEx values beyond all else, and this is its public perception. If a strike could shut down Express, FedEx might just fold and give back the pension plan they stole from us, and possibly a return to a quicker top-out time instead of the 15+ years that is now in effect. However, this would be a temporary victory for the full-time Courier, as FedEx would most certainly accelerate its plan to go to a near total part-time delivery work force. It would allow the career Couriers to leave with something, instead of the absolute insult we get in the mail each quarter, detailing the balance in our “portable pension plan”.

I know many Couriers want to get a form of job security implemented within any contract. I believe that FedEx would stone wall any such attempt, since it would prevent the cost savings they hope to realize with a pure part-time work force. This gets to the crux of the debate. The career Courier wants an arrangement which mirrors UPS conditions; while FedEx is envisioning a model of part-timers that spend a few years working before they hit the revolving door. Right now FedEx’s weakness is that it doesn’t have the technology in place to take a person off the street, and turn them into a delivery driver in a week (while maintaining productivity and package commitment times). Within 18 months, 24 at tops, they will have the technology to enable new hires to be given a week of training, and turned loose with a delivery truck and map to deliver packages. If they go to the expense of integrating GPS displays of the next delivery address in the cab, then the career courier is done. Fred will have his “robots” delivering packages, and the only career FedEx employees will be salaried “professionals” and a small handful of hourlies to maintain continuity and training of the revolving door of new Couriers and handlers.

This is part of the march of technology. Portable electronics and GPS navigation systems can make the knowledge and reasoning ability of career Couriers obsolete. The skill which takes a few years to develop in Couriers will be imitated with electronics and part-time labor. This is why my pragmatism about the success of organizing FedEx Couriers has a large degree of fatalism within it. The mechanics are still not replaceable with automation/technology. RTD’s are still needed for their skill at handling a large vehicle safely. Couriers are still needed, BUT they can be replaced with lower paying part-timers combined with technology laden trucks and data interfaces. This is why I believe that the best that can happen is for the pension to be returned, and possibly top-out as many Couriers as possible, but not much else.
 

MrFedEx

Engorged Member
Some excellent points, but a lot of conjecture. GPS in the cab doesn't mean that much because you still have to locate the stop. Plus, as anyone who has one will tell you, they aren't exactly infallible. All airline pilots are not unionized, although most are. I think a lot of what you say is valid, but there are an awful lot of variables that can change the eventual outcome.

One certainty is that Fred will do whatever it takes to keep his pockets lined with gold.
 
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