Ground to absorb Express
- Thread starter dvalleyjim
- Start date
Think you are wrong about it being a logistics nightmare. The ISP just needs to have drivers available to come in at different times as needed. And there is absolutely no need to have multiple drivers in areas where most packages are not going to be required to be delivered by 10 AM or whatever. The more deliveries in the same area an ISP can get, the better his bottom line will be. IF it necessitates having multiple drivers in the same areas due to time constraints, those drivers can be utilized later in the day to help deliver ground packages. ISPs who can manage time and scheduling well will make more money.
And if Express keeps the higher paying time sensitive deliveries, and gives the rest to ground, it will be pure revenue for the ISP. At first, some problems will arise, but over time, consolidation of terminals would solve most of the problems, with FEDEX saving even more money. Automated sorting equipment would be easy to set up.
The only real regulatory issue I see would be cracking open the door to the unions. Going to all ISP has already done that though. Since I expect (that at some point) FEDEX and ISPs will be determined to be co-employers of the ISP's drivers, and there is no doubt that those drivers are employees, the union only has to seek to unionize small terminals to get a foothold- even unionizing a single ISP without asking for very much from the ISP will give FEDEX the union problem the whole fake 'contractor' scam was intended to prevent. Adding more business, and making ISPs ever bigger by giving them express just paints a bigger target.
That's why they need to feed ground. Not enough drivers cheap enough for Express to hire. Fedex knows that people will work for a lot less than what it costs them, in wages, taxes, HR support, benefits, etc.
MAKAVELI
Well-Known Member
It's not going to happen bro. They will keep 2day and Express saver for much of the same reason they extended the USPS contract. To maximize efficiency in the express system. They can not downsize the system due to the demands of the customers and there is no way they will be able to hire an entire part time work force to fill the gaps created by giving 2 day and express saver to ground. It just makes zero sense.
Might work in a metro area where a driver's work area is measured in neighborhoods but not out in the rural areas where it's measured in terms of multiple counties. As for union representation , it's like IWBF mentioned some time back. the first ISP or his employees to sign an election petition that will be the end of the ISP.
In one sense of the word you're correct. Ground truck deployments out in the rural areas are a shadow, way too thin to take on time of day and day of week specific boxes. On the other hand given their recent actions I think it's safe to say that some type of restructuring is eminent . The "he's going that way so he can take this with him"mentality appears to be growing. If they can find a way to throw x boxes on a Ground ride with the mindset that it doesn't cost the ISP anything to to take it because " he's going that way" and pay him next to nothing because "he's going that way" why wouldn't they?. The savings would be enormous.For the metro ISP he may be able to get away with it without having to commit a lot in the way of additional assets For the rural ISP he may have to add trucks and manpower running out ahead of the ground grunt in order to get the time of day/day of week stuff out there in time. Just as is the case with running 6 days a week year round will X fork over the bucks to provide the iSP with value in balance with what they demand ?
It will be fine
Well-Known Member
It's like Amazon. They don't have to do it everywhere to save money. There are plenty of specific instances where it won't make sense, there are a lot where it will. Metro areas are where they make their money so maximizing efficiency there is going to be necessary. It's also where they have the biggest labor pool to pull from and can find the people that only want part-time.
MAKAVELI
Well-Known Member
You think it would be that simple but it isn't. To do it on a mass scale nationality just doesn't make sense. They really have handcuffed themselves keeping both opcos separate. They save a grip of $ on the ground side but are pretty much locked in keeping a fulltime workforce at Xpress to make it as efficient as possible. That's where the 2day and Express Saver come in to fill the gaps. This is where UPS has the edge. Their systems are combined to allow them the flexibility to adjust to volume and customer demands. Anyone who believes the Express system can survive and flourish with just overnight freight is both ignorant and foolish.
MAKAVELI
Well-Known Member
It's not like Amazon. Amazon is a on line retail operation trying to become a carrier with the flexibility to use other carriers to fill gaps. I don't know of any places where the majority of the workforce wants only part time. From my experience most part timers only stay on with the hope of gaining a full time position.
Gone fishin
Well-Known Member
This would never happen. Not even worth the speculation
MAKAVELI
Well-Known Member
Exactly. Stock is at almost $200. I don't think they are going friend* with something the stockholders believe is working. They will continue to keep the opcos separate until the laws change or it becomes no longer the financial benefit to do so.
Gone fishin
Well-Known Member
This question was asked to our regional manager as he explained this could never happen because of the railway act. Fed express is built on air freight. Combining the two would break it
overflowed
Well-Known Member
You got it ass backwards man. I worked in the most expensive metro area for years. Even during the recession they were hiring. It's so expensive in the metro areas nobody in them can afford to take or want a part time job. Seems when this topic comes up you hope it happens. It really won't with the control they keep on express. I care less I'm gone. From what I've seen they will never trust contractors to take anything with real time commits. They can't even get your guys to grab a return box for weeks .
Purplepackage
Well-Known Member
If they were going to dissolve express they would've tried during the recession. Instead they didn't lay off a single person
Q&A
Are you suggesting that they plan for the future based on a reality of 10 years ago?!
It will be fine
Well-Known Member
All our buildings are staffed with part timers. There are very few full time positions. They still manage find 2-300 workers to take the jobs.
I read some statistics not long ago that said that 62% of the boomer generation have less than $50,000 in retirement savings. There is or soon will be plenty willing to take PT work if there are physically able. When I told the managers at the barn I was at that I will make myself available this fall provided that they keep my name off the manpower board and my availability known only to them they were glad to hear it. The problem is that people have come in desperate for FT family sustaining employment only to be shocked to discover that they are either PT package handlers or PT on call short notice fill in drivers. They are disappointed and often angry to discover that what is offered is more of what they have already seen too much of. But if you are in an area that has a good supply of cash strapped boomers physically able to work then you should see a pretty good supply of them coming through the door.
Gone fishin
Well-Known Member
We've up graded most of our pt rts to full time because of the constant turnover. I think we have 3 left. So that stat doesn't work at our station
Nationwide labor markets vary not just regionally or even state by state but within the state itself. It would appear a strengthening economy within you locale forced Express and I'm assuming that you are with Express to offer more FT routes not because they wanted to but rather in response to increased competition within your local labor market.
