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<blockquote data-quote="oldrps" data-source="post: 1731381" data-attributes="member: 36765"><p>Your degree and experience at Express do not make you an expert on what happened at RPS or what happens at FedEx Ground. You say the same thing of anybody that says something about Express. Ground is not the child of Express, if anything, Ground has kept Express from going out of business. </p><p></p><p>With over 30 years in the transportation industry, you must realize that SHIPPERS, not the carriers, have made the switch to slower, cheaper ways. FedEx had to adapt. The shift of business from Overnight/2 Day to ground over the last 15 years would have left FedEx with their pants down without a Ground system. If Express grew their own ground service, they would have gone union. I think you know how much Fred does not like that. Fred knew this was coming and smartly purchased the needed service and it has paid very well. </p><p></p><p>Your numbers for what contractors net is low. The contractors at the terminal I worked at in the late nineties average gross was about $58,000/year. Nearly all of them were owner/operator, very few had multiple routes. This would net them about $36,000/year and they did not work 60 hours a week. Most worked about 45 - 50 hours a week. The way a contractor runs their business will determine how much they make. You must realize that EVERY expense they have reduces their tax liability and depreciation is your friend. Some contractors will make more and some will fail. It depends on how good of a business person they are.</p><p></p><p>Why wouldn't they put their money into Ground? It's making almost 20 cents on the dollar where Express is breaking even. Would you put your money into a business that does not grow. I would invest in something that grows at 20%. Your right that FedEx Ground is a low-ball, low-rent operation. That's why they make money and Wall St. likes that and that is who Fred caters to. After 30 years you should know that.</p><p></p><p>The legal and safety problems of the FedEx Ground model will continue just as they have for the past 30 years. It isn't new and they will adapt or pay.</p><p></p><p>Personally, I would never become a contractor, but I have known many people who have started businesses (not FedEx). They would work seven days a week, over 80 hours a week, and lose tens to hundreds of thousands of dollars. When you compare a FedEx Ground contractor business to that, you will see it is not as risky of a venture. If the courts one day rule they are employees, then they can get a very large payout in the settlement. Makes being a contractor even better.</p></blockquote><p></p>
[QUOTE="oldrps, post: 1731381, member: 36765"] Your degree and experience at Express do not make you an expert on what happened at RPS or what happens at FedEx Ground. You say the same thing of anybody that says something about Express. Ground is not the child of Express, if anything, Ground has kept Express from going out of business. With over 30 years in the transportation industry, you must realize that SHIPPERS, not the carriers, have made the switch to slower, cheaper ways. FedEx had to adapt. The shift of business from Overnight/2 Day to ground over the last 15 years would have left FedEx with their pants down without a Ground system. If Express grew their own ground service, they would have gone union. I think you know how much Fred does not like that. Fred knew this was coming and smartly purchased the needed service and it has paid very well. Your numbers for what contractors net is low. The contractors at the terminal I worked at in the late nineties average gross was about $58,000/year. Nearly all of them were owner/operator, very few had multiple routes. This would net them about $36,000/year and they did not work 60 hours a week. Most worked about 45 - 50 hours a week. The way a contractor runs their business will determine how much they make. You must realize that EVERY expense they have reduces their tax liability and depreciation is your friend. Some contractors will make more and some will fail. It depends on how good of a business person they are. Why wouldn't they put their money into Ground? It's making almost 20 cents on the dollar where Express is breaking even. Would you put your money into a business that does not grow. I would invest in something that grows at 20%. Your right that FedEx Ground is a low-ball, low-rent operation. That's why they make money and Wall St. likes that and that is who Fred caters to. After 30 years you should know that. The legal and safety problems of the FedEx Ground model will continue just as they have for the past 30 years. It isn't new and they will adapt or pay. Personally, I would never become a contractor, but I have known many people who have started businesses (not FedEx). They would work seven days a week, over 80 hours a week, and lose tens to hundreds of thousands of dollars. When you compare a FedEx Ground contractor business to that, you will see it is not as risky of a venture. If the courts one day rule they are employees, then they can get a very large payout in the settlement. Makes being a contractor even better. [/QUOTE]
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