Market levels

[UpstateNYUPSer(Ret)]

Our premium products are by far our most profitable (per pkg).

 

[MAKAVELI]

Please provide the data to support you profit per package claim.

I still think that you have it backwards.

If Express is more profitable per pkg then why have Ground at all? We had a meeting at station in Texas in 2012 where Sr mgr put up a chart showing those numbers to explain why the company was doing what it's doing. For example, an overnight letter from a nearby city would cost a customer mid-twenties with Express but only $5 with Ground. And yet the company would make more profit on the Ground letter. The overall operating costs of flying add up to less profit at Express.

Our premium products are by far our most profitable (per pkg).

That is because UPS does not separate the two services into two different divisions. UPS has both services integrated, for a more efficient system thus making air freight more profitable. FedEx is exactly the opposite. They separate the two resulting in a very inefficient system, but a very profitable Ground div because of the lower operating costs.

 

[UpstateNYUPSer(Ret)]

I understand their overall profitability.

His argument is profit per package which to me does not make sense.

 

[vantexan]

Our premium products are by far our most profitable (per pkg).

Something else. If we went back to how it used to be, driving 700's instead of Sprinters, handling tons of heavy boxes, I doubt we could maintain an adequate workforce on what we pay. We used to have much better benefits, and we earned them.

 

[vantexan]

W

I understand their overall profitability.

His argument is profit per package which to me does not make sense.

What percentage of your overall freight is air?

 

[MAKAVELI]

I understand their overall profitability.

His argument is profit per package which to me does not make sense.

I just explained it to you. If our services were combined into one all employee workforce, the express freight would be more profitable as yours is. It's really not that complicated.

 

[UpstateNYUPSer(Ret)]

W

What percentage of your overall freight is air?

10%?

 

[vantexan]

I understand their overall profitability.

His argument is profit per package which to me does not make sense.

10%?

Most of our freight is flown. The costs of our fleet plus jet fuel is enormous.

 

[Schweddy]

Found this in the employee break room....

Van, his attachment shows 12 pay scales with explanations. I'm not suggesting it's the same for everyone but the three I quoted (and dano) are what we have at our station.

7 merged into 5.

 

[vantexan]

Van, his attachment shows 12 pay scales with explanations. I'm not suggesting it's the same for everyone but the three I quoted (and dano) are what we have at our station.

If you look across the top of that page you will see the payscales designated by letters L through B. These are the old payscales, 7 of them. That's different than the 12 paycodes you are looking at which represent job classifications. There are now 5 payscales, Base through Base4.

 

[Schweddy]

Sorry for the misunderstanding.. We were talking about "paycodes"

 

[Code 82 Approved]

They might have to open more stations to handle the volume. That won't cost nearly as much as will be saved by how many buildings they can shut down by folding ground into express.

They might have to add a day to the commit dates in certain areas for ground. Instead of waiting for the ground to arrive today we could just deliver the ground that arrived yesterday, and whatever arrives today will get delivered tomorrow. Depending on the size of the station and what time the ground arrives we could have all our ground sorted and ready to go when we punch in and all we have to sort is our air.

The stops per hour of every route across the country could be higher because they will all have tighter areas. There will be more routes though which would require a lot more employees. When the ground terminals are notified of their impending closures express applications should be handed out left and right to the ground drivers who will soon be out of work.
And for what it's worth UPS in my area is on the road at least an hour before us every day, except sometimes on Monday.

Are you on drugs? That's exactly going to be the sales pitch. Ground, Express, Freight... Which service fits your budget in your JIT "Just in time" scheme?

 

[Code 82 Approved]

If Express is more profitable per pkg then why have Ground at all? We had a meeting at station in Texas in 2012 where Sr mgr put up a chart showing those numbers to explain why the company was doing what it's doing. For example, an overnight letter from a nearby city would cost a customer mid-twenties with Express but only $5 with Ground. And yet the company would make more profit on the Ground letter. The overall operating costs of flying add up to less profit at Express.

So let's fly a letter to Memphis when some no name chub says "Hey" this is going to Schaumburg at 2pm from DT Windy.

Eventually Express will hire smart people and they can actually profit share and offer you guys back stuff you lost because the people in place don't have enough brains to flippin put an airbill on.

The downside is, it will be common folks like me from ground!

 

[Code 82 Approved]

They might have to open more stations to handle the volume. That won't cost nearly as much as will be saved by how many buildings they can shut down by folding ground into express.

They might have to add a day to the commit dates in certain areas for ground. Instead of waiting for the ground to arrive today we could just deliver the ground that arrived yesterday, and whatever arrives today will get delivered tomorrow. Depending on the size of the station and what time the ground arrives we could have all our ground sorted and ready to go when we punch in and all we have to sort is our air.

The stops per hour of every route across the country could be higher because they will all have tighter areas. There will be more routes though which would require a lot more employees. When the ground terminals are notified of their impending closures express applications should be handed out left and right to the ground drivers who will soon be out of work.

And for what it's worth UPS in my area is on the road at least an hour before us every day, except sometimes on Monday.

Are you kidding? FDX G will make us deliver a damn pkg even if the trailer arrives at noon, call it double dispatch, or whatever.

 

[fdxsux]

If Express is more profitable per pkg then why have Ground at all? We had a meeting at station in Texas in 2012 where Sr mgr put up a chart showing those numbers to explain why the company was doing what it's doing. For example, an overnight letter from a nearby city would cost a customer mid-twenties with Express but only $5 with Ground. And yet the company would make more profit on the Ground letter. The overall operating costs of flying add up to less profit at Express.

The only reason FedEx didn't immediately integrate RPS into Express was to protect its RLA status. If Express employees started delivering ground pkgs they would fall under the NLRB which would make it much easier to unionize. It's really the only reason they are still separate today.

 

[vantexan]

The only reason FedEx didn't immediately integrate RPS into Express was to protect its RLA status. If Express employees started delivering ground pkgs they would fall under the NLRB which would make it much easier to unionize. It's really the only reason they are still separate today.

They're going to do whatever nets the most money. They may be forced by the courts someday to do differently but until then they call the shots and we get to drive oldfart crazy. And it's somebody else's headache soon.

 

[fedex_rtd]

We had 7 market levels, now we have 5. Do we know what market levels got combined?

 

[Serf]

We had 7 market levels, now we have 5. Do we know what market levels got combined?

I am trying to remember where I read the combining of the the lower/smaller market levels. The east and west coast stayed the same. With the addition of the increase in pay and market level. Our topped out guys went up 6.8% I'm sure someone else could chime in.

 

[fedex_rtd]

I am trying to remember where I read the combining of the the lower/smaller market levels. The east and west coast stayed the same. With the addition of the increase in pay and market level. Our topped out guys went up 6.8% I'm sure someone else could chime in.

Yeh, I noticed that our top of range drivers were at step 9 with the 3% raise, but when they did the rounding it put them .01 over the step 9 figure so they ended up with a $2.11 raise, but no one else lucked out.

 

[Serf]

Yeh, I noticed that our top of range drivers were at step 9 with the 3% raise, but when they did the rounding it put them .01 over the step 9 figure so they ended up with a $2.11 raise, but no one else lucked out.

Not bad, eh?!