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Is FedEx Scrambling for ideas?
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<blockquote data-quote="It will be fine" data-source="post: 5589623" data-attributes="member: 55017"><p>Absolutely. A big issue the new contract changes put in was changing the definition of our geographic areas. The new language says FedEx can change our boundaries whenever they want. This was concerning to many contractors. The reality is FedEx could always do that, they just clarified it. </p><p></p><p>FedEx does underestimate the current lack of profitability. They have contractors walk away, pay a contingency team 3 times the rates to cover it, give the contract to a new guy paying the old rates, wait 6 months for him to walk away and go back to the contingency team. A nearby state has been operating like this for years. They could just pay a regular contractor 1.25 to 1.5 times the old rate, they’d be profitable with growing equity and FedEx would get better service. It’s nonsense like that that makes me skeptical that FedEx really understands what drives their model.</p></blockquote><p></p>
[QUOTE="It will be fine, post: 5589623, member: 55017"] Absolutely. A big issue the new contract changes put in was changing the definition of our geographic areas. The new language says FedEx can change our boundaries whenever they want. This was concerning to many contractors. The reality is FedEx could always do that, they just clarified it. FedEx does underestimate the current lack of profitability. They have contractors walk away, pay a contingency team 3 times the rates to cover it, give the contract to a new guy paying the old rates, wait 6 months for him to walk away and go back to the contingency team. A nearby state has been operating like this for years. They could just pay a regular contractor 1.25 to 1.5 times the old rate, they’d be profitable with growing equity and FedEx would get better service. It’s nonsense like that that makes me skeptical that FedEx really understands what drives their model. [/QUOTE]
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