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Hey Fred, Take Ownership of the Debacle
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<blockquote data-quote="Ricochet1a" data-source="post: 1112278" data-attributes="member: 22880"><p>It is because the labor involved in the pickup-delivery of Ground is so grossly under-compensated in comparison to even Express Couriers. If the Ground 'sham' were to be eliminated and their pay rates were to come up to at least Express levels, then the margin per piece would fall so dramatically, that Express would end up having the higher per piece margin. </p><p></p><p>It is what happens when labor is utilized which isn't compensated anywhere near what the real productivity would support. Also, a business model which circumvents the intent of labor law in regards to establishing a 'balancing mechanism' between labor and employer via the potential use of unionization - also facilitates the unexpected situation where Ground service yields a higher margin per piece than if that same piece went through Express.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1112278, member: 22880"] It is because the labor involved in the pickup-delivery of Ground is so grossly under-compensated in comparison to even Express Couriers. If the Ground 'sham' were to be eliminated and their pay rates were to come up to at least Express levels, then the margin per piece would fall so dramatically, that Express would end up having the higher per piece margin. It is what happens when labor is utilized which isn't compensated anywhere near what the real productivity would support. Also, a business model which circumvents the intent of labor law in regards to establishing a 'balancing mechanism' between labor and employer via the potential use of unionization - also facilitates the unexpected situation where Ground service yields a higher margin per piece than if that same piece went through Express. [/QUOTE]
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