New OT Policy En Route

[fatboy33]

Goal is to pick away at Express till they leave no severance package just force them to. Leave.

Exactly. If you have a wife making decent pay, then stay on and wait them out. If you're top pay with 5 weeks vacation, its only a matter of time they come with an offer for you.

 

[vantexan]

The biggest hit here isn't the OT per day, but it's going to be the non worked hrs... such as Vacation days, if you get 8hrs for a Vacation/holiday/sick day, that 8 hrs isn't included in your 40...

so if Monday is a holiday, you get 8... in order for you to get any OT you'll have to work over 40hrs the remaining days of the week...

so many senior couriers have broken up vacation weeks, taking Fridays all summer(or something like that) these people aren't getting any OT...

Wouldn't surprise me to see part-timers used on Fridays to make sure FTers don't get OT. If they still have 35 HR minimum the FTers will probably only work 35 or so. And if enough work is given to Ground then might not see many 4X10 rts in the future. 5X8's that don't get a full 40 except during Peak will be the norm.

 

[Spam]

Yep. We essentially told USPS their account wasn’t big enough. Not worth it. Keep in mind no other customer using FedEx shipped more……

And paid less, just like Amazon !!!

 

[cobo51]

The biggest hit here isn't the OT per day, but it's going to be the non worked hrs... such as Vacation days, if you get 8hrs for a Vacation/holiday/sick day, that 8 hrs isn't included in your 40...

so if Monday is a holiday, you get 8... in order for you to get any OT you'll have to work over 40hrs the remaining days of the week...

so many senior couriers have broken up vacation weeks, taking Fridays all summer(or something like that) these people aren't getting any OT...

Are we still going to get OT pay if working on scheduled day off regardless if holiday or vacation day week, correct?

 

[59 Dano]

Your next chief!

My next chief?

 

[59 Dano]

I mean clearly they saw profit in it. If the contract proposed was as bad as FedEx made it sound, nobody would want it. The problem is FedEx’s operation. It’s been built up with planes, pilots, handlers and RTD’s to shuttle & fly A LOT of postal. When the volume dropped the SETUP they had wasn’t worth it. Doesn’t mean the contract wasn’t worth it. Just means FedEx would rather eliminate the operation than heavily adjust it. However you slice it, losing the contract was a massive loss and the company was very very dumb for doing so.

This was addressed in the 2023 annual report last June and the company stressed that it may not be worth it to renew the contract this coming September. The primary issue was the ongoing and planned dramatic structural changes within the USPS that were being undertaken to reduce the need for and dependence on air transport now and for the foreseeable future. It was made clear then just as it was recently when you guys decided you would be upset: FedEx had a price that it wanted or it wasn't interested. Just like with Amazon.

What was your plan for making this work? What's the expense to adjust operations, and approximately how long would those be recouped? Do you have an amortization schedule for that, and does it account for further declines in volume? If so, what's the rate of decline over the next 3 years? What kind of aircraft redeployment do you propose that maintains proper cargo volume capacity ratios? Considering the current and project declines in postal volume, at what point in the contract would there need to be significant operational changes to make the volume worthwhile? What would be your plan if volumes fell below that point?

People on the outside looking in yelling "they should have kept it" over and over is cute.

 

[59 Dano]

Are we still going to get OT pay if working on scheduled day off regardless if holiday or vacation day week, correct?

Holidays and vacation days will no longer be included in the calculation of OT pay as I understand it.

 

[MAKAVELI]

Holidays and vacation days will no longer be included in the calculation of OT pay as I understand it.

This isn't clear as far as paid holidays and day off ot. Memo said extended work week ( day off is still ot ). So during holiday weeks is day off punch ot or no ot?

 

[fdxsux]

This isn't clear as far as paid holidays and day off ot. Memo said extended work week ( day off is still ot ). So during holiday weeks is day off punch ot or no ot?

The memo said 6th and 7th days are ot,not day off. So I assume if you’re Mon-Fri and you come in the Sat after Memorial Day you would not get overtime because it’s only your 5th day of work that week.

 

[MAKAVELI]

The memo said 6th and 7th days are ot,not day off. So I assume if you’re Mon-Fri and you come in the Sat after Memorial Day you would not get overtime because it’s only your 5th day of work that week.

It's not clearly stated.

 

[Aquaman]

This was addressed in the 2023 annual report last June and the company stressed that it may not be worth it to renew the contract this coming September. The primary issue was the ongoing and planned dramatic structural changes within the USPS that were being undertaken to reduce the need for and dependence on air transport now and for the foreseeable future. It was made clear then just as it was recently when you guys decided you would be upset: FedEx had a price that it wanted or it wasn't interested. Just like with Amazon.

What was your plan for making this work? What's the expense to adjust operations, and approximately how long would those be recouped? Do you have an amortization schedule for that, and does it account for further declines in volume? If so, what's the rate of decline over the next 3 years? What kind of aircraft redeployment do you propose that maintains proper cargo volume capacity ratios? Considering the current and project declines in postal volume, at what point in the contract would there need to be significant operational changes to make the volume worthwhile? What would be your plan if volumes fell below that point?

People on the outside looking in yelling "they should have kept it" over and over is cute.

As I’ve already stated… make significant operational changes with SOME volume. Or make significant operational changes with NO volume. FedEx is not getting out of adjusting the day side operation. That’s happening regardless of the contract. But we’re in the business of flying freight. Seems to me that you’re trying to talk around the fact that the company wants out of the air business.

 

[542thruNthru]

Saw this on Reddit.

View attachment 483948

Ouch...

I’m so glad we never voted in a union!

I know you're being facetious. You'd have a real chance soon since they are trying to combine the two services but the problem is you got too many contractors and their lackeys that think they are CEOs. Which is honestly laughable lol.

I say they need a Union

I'll leave this right here....

 

[yadig]

This was addressed in the 2023 annual report last June and the company stressed that it may not be worth it to renew the contract this coming September. The primary issue was the ongoing and planned dramatic structural changes within the USPS that were being undertaken to reduce the need for and dependence on air transport now and for the foreseeable future. It was made clear then just as it was recently when you guys decided you would be upset: FedEx had a price that it wanted or it wasn't interested. Just like with Amazon.

What was your plan for making this work? What's the expense to adjust operations, and approximately how long would those be recouped? Do you have an amortization schedule for that, and does it account for further declines in volume? If so, what's the rate of decline over the next 3 years? What kind of aircraft redeployment do you propose that maintains proper cargo volume capacity ratios? Considering the current and project declines in postal volume, at what point in the contract would there need to be significant operational changes to make the volume worthwhile? What would be your plan if volumes fell below that point?

People on the outside looking in yelling "they should have kept it" over and over is cute.

That’s a lot of bs!

 

[59 Dano]

As I’ve already stated… make significant operational changes with SOME volume. Or make significant operational changes with NO volume. FedEx is not getting out of adjusting the day side operation. That’s happening regardless of the contract.

At least you're right about that. How much effort should be spent in retooling their operation for volume that isn't guaranteed and for a customer that says it will do all it can to use our air transport as little as possible even with the contract?

But we’re in the business of flying freight. Seems to me that you’re trying to talk around the fact that the company wants out of the air business.

This isn't hard to understand. People walk away from deals if the terms aren't good enough to suit them. This happens thousands of times a day across the country.

You don't really have a rational reason that can withstand any sort of analytic scrutiny for them to keep the freight beyond the old boomer mentality of they should keep the freight just because it's freight they should keep, do you?

 

[yadig]

At least you're right about that. How much effort should be spent in retooling their operation for volume that isn't guaranteed and for a customer that says it will do all it can to use our air transport as little as possible even with the contract?


This isn't hard to understand. People walk away from deals if the terms aren't good enough to suit them. This happens thousands of times a day across the country.

You don't really have a rational reason that can withstand any sort of analytic scrutiny for them to keep the freight beyond the old boomer mentality of they should keep the freight just because it's freight they should keep, do you?

Are you sure it was a “bad deal” or horribly mismanaged?

 

[59 Dano]

Are you sure it was a “bad deal” or horribly mismanaged?

If you knew how to do math beyond the 8th grade level, you'd understand.

 

[yadig]

If you knew how to do math beyond the 8th grade level, you'd understand.

Will it be a bad deal for UPS? If they are successful and profit from the deal what’s your excuse then?

 

[bacha29]

This was addressed in the 2023 annual report last June and the company stressed that it may not be worth it to renew the contract this coming September. The primary issue was the ongoing and planned dramatic structural changes within the USPS that were being undertaken to reduce the need for and dependence on air transport now and for the foreseeable future. It was made clear then just as it was recently when you guys decided you would be upset: FedEx had a price that it wanted or it wasn't interested. Just like with Amazon.

What was your plan for making this work? What's the expense to adjust operations, and approximately how long would those be recouped? Do you have an amortization schedule for that, and does it account for further declines in volume? If so, what's the rate of decline over the next 3 years? What kind of aircraft redeployment do you propose that maintains proper cargo volume capacity ratios? Considering the current and project declines in postal volume, at what point in the contract would there need to be significant operational changes to make the volume worthwhile? What would be your plan if volumes fell below that point?

People on the outside looking in yelling "they should have kept it" over and over is cute.

This is one time (and it's not often) when you're right.
A couple times a week I have to go visit ill relatives. It's a 75 mile trip on the interstate. If anybody wants to know the direction your company is going in just go out and count the number of FDX trucks on the interstate. The largest number by far.
In the end it's likely to become what it appears to be headed for. A package, LTL and expedited freight trucking company that contract flies a little freight but far far less than it did during it's heyday.

The danger lies in whether or not Ground contractors can successfully integrate Express freight into their operations, meet commit times and be paid enough to cover the cost of additional trucks and manpower. If as it appears they are being required to haul it for free with severe penalties for not making time commits....one can only expect the outcome to quite unpleasant.

 

[59 Dano]

Will it be a bad deal for UPS? If they are successful and profit from the deal what’s your excuse then?

Pearl clutchers act as though this is a gold mine that FedEx is walking away from. FedEx was and probably would have continued to make money off of the deal but not enough to justify the effort.

The dwindling volume was making it less compatible for the FedEx network, namely creating too much excess capacity on the affected flights. You might say to take a smaller plane off of another route and put it on the mail route because that matches the volume to the plane, and you'd be right. But then you have to replace that smaller plane that came from another route, and you end up replacing it with a larger plane. You're simply moving the excess capacity from one flight to another.

You can ignore all of that if you want and just look at the numbers of the deal. Direct expenses of the USPS volume are around $1.5 billion annually. Most of those costs are fixed and can't be scaled down much, if at all. Our FY23 revenue from USPS was around $1.6 billion, down from previous years and the postal service says it's going to be sending less freight in the future. There are also significant savings that come from operation adjustments.

As for UPS, I don't know or care if it's a good deal for them. Depends on how well aligned the ratio of USPS volume to capacity is. Depends on how easily they can absorb that freight into their existing operations.

 

[What'dyabringmetoday???]

H

This is one time (and it's not often) when you're right.
A couple times a week I have to go visit ill relatives. It's a 75 mile trip on the interstate. If anybody wants to know the direction your company is going in just go out and count the number of FDX trucks on the interstate. The largest number by far.
In the end it's likely to become what it appears to be headed for. A package, LTL and expedited freight trucking company that contract flies a little freight but far far less than it did during it's heyday.

The danger lies in whether or not Ground contractors can successfully integrate Express freight into their operations, meet commit times and be paid enough to cover the cost of additional trucks and manpower. If as it appears they are being required to haul it for free with severe penalties for not making time commits....one can only expect the outcome to quite unpleasant.

Hardly see any FedEx here lately. Must mean they are out of business, right?