Is FedEx legally obligated to negotiate in good faith with their contractors?

542thruNthru

Well-Known Member
ImageUploadedByBrownCafe1398457817.703190.jpg
I would believe it if he said ground drivers...

FedEx Express sprinter in lake on @soberups route remember?
 

XEQaF

Well-Known Member
FedEx is contractually obligated to act within the Purple Promise of raping its contractors silly until they tap out to the absurdity of thinking they are an independent operator. IMO a one sided contract isn't considered "negotiating in good faith".

Rural routes are not and will never be money makers. You carry them only to bolster your PSA numbers for your Enhanced Primary Plus quarterly bonus if they still do that with ISP. You can't build your "business" off rural area and hope it multiples in years to come. You will have poor ROI. You need to build off density and that's your only hope because as a contractor you don't have control over pricing, tariffs, national contracts etc. you are essentially a cost center. The better you manage your costs, the more you make.

I use the word "more" loosely when referring to FedEx. They keep the carrot dangling for most contractors knowing that they have invested heavily with all the eggs in one basket and will be in dire straits if they walk away. Good investment if you need to buy yourself a job complete with a tyrant set of bosses, yea to being an entrepreneur.

Your best bet is to hang in, maybe see if you can spin off and diversify your talents and area knowledge into finding your own B2B delivery contracts. Good luck!

New member here. A family member recently purchased a FedEx Ground business operating in North FL. The routes deliver into a rural area with many unpaved roads & are the furthest from the terminal. It took only 2 weeks for him to ascertain that the business wasn't making any money, he was in fact losing money as FedEx hadn't been adequately funding the business. Distance from the terminal & wear/tear on the vehicles being the primary factor. As is the current process, FedEx provided 3 offers for him to consider. None of them addressed the business's financial needs, namely to make a profit of any kind. Per the process he rejected all 3 offers & was supposed to go into negotiations. Before entering into ISP "negotiations" he had done quite a bit of analysis to support this funding problem. He provided that research to FedEx beforehand so that they would understand where he was coming from.

Upon the start of talks it became very clear that the FedEx team hadn't looked at or considered his data. The numbers package they put forward were nothing more than what he had already rejected. After much back & forth, with terminal mgt. stringing him along, saying they would get him what he needed as it wasn't much more than FedEx was already offering, he finally got a straight answer from terminal mgt. That more money wouldn't be forthcoming. Having said that he informed FedEx of what he had stated previously, if you cant adequately fund these routes he would "close shop" in a few days as he couldn't continue absorbing losses. To that point his business was outperforming all other contractors in the terminal. Being contractors, isn't FedEx obligated to actually negotiate in good faith? This family member went into debt to the tune of $500K to buy this so called "business." Feels much more like a scam than an actual business opportunity. They never negotiated. Hoping for some answers/guidance from the community. Thanks....
 

floridays

Well-Known Member
FedEx is contractually obligated to act within the Purple Promise of raping its contractors silly until they tap out to the absurdity of thinking they are an independent operator. IMO a one sided contract isn't considered "negotiating in good faith".

Rural routes are not and will never be money makers. You carry them only to bolster your PSA numbers for your Enhanced Primary Plus quarterly bonus if they still do that with ISP. You can't build your "business" off rural area and hope it multiples in years to come. You will have poor ROI. You need to build off density and that's your only hope because as a contractor you don't have control over pricing, tariffs, national contracts etc. you are essentially a cost center. The better you manage your costs, the more you make.

I use the word "more" loosely when referring to FedEx. They keep the carrot dangling for most contractors knowing that they have invested heavily with all the eggs in one basket and will be in dire straits if they walk away. Good investment if you need to buy yourself a job complete with a tyrant set of bosses, yea to being an entrepreneur.

Your best bet is to hang in, maybe see if you can spin off and diversify your talents and area knowledge into finding your own B2B delivery contracts. Good luck!
I stopped reading after I read one sided contract, What clown would actually sign a "one sided contract?"
I've got to Finnish, yes Finnish the rest of your spiel.
 

ManInBrown

Well-Known Member
The short answer is the previous owner included numbers from other, profitable routes. I call that fraudulent, but that another issue. I am looking to learn about what FedEx is obligated to do in talks.
The entire Fedex model is based on a scam. The scam is, putting as much money in Fred’s pocket as possible, and let all the employees scavenge for scraps and crumbs. 500K lol
 

bacha29

Well-Known Member
The entire Fedex model is based on a scam. The scam is, putting as much money in Fred’s pocket as possible, and let all the employees scavenge for scraps and crumbs. 500K lol
It's a model Fat Freddy bought off of Roadway. Trouble is it was never designed to serve multiple markets and demographics but Fat Freddy desperate for returns is trying to make it do just that.
 

Cactus

Just telling it like it is
Yep, the whole contractor scheme is nothing but a firewall to keep the union out, getting cheap labor and making Smith rich.
 

bacha29

Well-Known Member
Yep, the whole contractor scheme is nothing but a firewall to keep the union out, getting cheap labor and making Smith rich.
Indeed. Every current contractor as well as those who think they want to be one has to decide for themselves just how much money they're willing to place at risk for the sake of a venture for which asset and equity growth is not the purpose or objective and is plainly stated as such. Whether you sell your contract for $1,000,000 or....$8.44 is an outcome Fedex will decide.
Granted , there will be a few who will come out ahead but that number will likely shrink in the coming days as contractors scramble to find enough boxes and people willing to work weekends and holidays year round for low wages and zero benefits. And along with it will come fewer interested buyers willing to pay more than "take it off your hands" money to acquire a contract.
 
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