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New PPADS...Ground and Express using the same unit.
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<blockquote data-quote="Ricochet1a" data-source="post: 891205" data-attributes="member: 22880"><p>When it comes to the RLA, how FedEx shuffles around it cash it IRRELEVANT. </p><p></p><p>Have a holding corportation (FedEx Corp), create an operating company (Ground, Freight, Office, etc.). fund said operating company with cash and make the necessary accounting notations (debit cash, debit equity for holding company - credit cash, credit liability account for opco). As opco operates, it generates revenue and eventually profit - as profitability enables initial infusion of cash to be "repaid" to holding company, it does do. Holding company shows profitability. Opco can contract out for services from another opco of the holding company - money is exchanged for "services" rendered. </p><p></p><p>Since FedEx doesn't engage in open competition when it does decide to have one opco perform services for another - one opco can and DOES charge what it wants to provide the service - money is shuffled around like this. The decision to contract out services by one opco ISN'T made by that opco - it is made by FedEx Corporation. This happens in many holding corporations and is perfectly legal - there is no requirement to obtain open competition for services or products - nor should there be. </p><p></p><p>If Express wants to contract trucking out to a contractor (say Swift), it gets a quote and makes a decision as to whether or not to agree to the terms. If for some reason, FedEx Corporation decides that Freight is underutilized, it can make the decision to have Freight move the Express cargo (have a Freight tractor and employee pull an Express trailer) - again, no big deal. Even if FedEx Corp decides that the contract between Freight and Express for this service will result in charges that are GREATER than the rate offered by Swift in this instance, that is OK too - all perfectly legal. It is how cash is moved around and excess capacity of one opco is utilized rather than having that opco take a loss and have a net outflow of cash from the corporation AS A WHOLE. </p><p></p><p>The having of one opco provide services to another is IRRELEVANT for the purposes of RLA classification of employees of a single operating company (FedEx Express).</p><p></p><p>The "default" categorization of a company's labor for purposes of organizing is to be under the National Labor Relations Act (NLRA), which is administered by the National Labor Relations Board (NLRB). </p><p></p><p>In order for a company to be categorized under the highly restrictive RLA (restrictive from a labor organizing and strike potential) - it must meet certain criteria. </p><p></p><p>One of these criteria is that employees have to be engaged in activity that is solely related to the "express" movement of either passengers or cargo. If the employee is to be engaged in activity which doesn't meet this (and other) criteria, they must be categorized under NLRA organizing rules. UPS moves plenty of "express" air cargo around. However, since they operate as an integrated SINGLE company for their package movement, they remain classified under NLRA rules - and thus why the Teamsters are in UPS. </p><p></p><p>Apart from the millions in lobbying expenses FedEx Corporation has spent to keep Express categorized under the RLA, the reason Express has remained under RLA classificaiton rules is that its employees engage in the movement of "express" cargo ONLY. They don't engage in the movement of non "express" (definitions under RLA) cargo. This is the reason that all the opco's exist - if Federal Express had expanded into the businesses that it currently has without creating separate opcos -there would've been NO WAY for Federal Express to keep the employees of the "original Express", under RLA - and thus keep the Teamsters and every other union out. FedEx is organized the way it is for one primary purpose - to make it either impossible or virtually impossible for a union to get in - excepting those darn pilots, who couldn't be intimidated by Fred.</p><p></p><p>The capability of Express to have its Couriers place a scan (<u>a revenue generating event)</u> on a Ground package - has changed the game. With this, Express Couriers are now no longer operating SOLELY as movers of "express" cargo (defined by the RLA) but rather are ordinary delivery truck jockeys. THis means that they fall outside the intent of RLA restrictions, and should be moved over to NLRA organizing rules. </p><p></p><p>When I was a Courier, I can't remember EVER seeing a PUX that allowed a scan to be placed on a Ground package. The individual that I suggested to attempt a scan should he come across a Ground package - wasn't even aware the PUX was available. He (and everyone in the station) were instucted to bring any Ground packages they found in their drop boxes back to the station WITHOUT ATTEMPTING TO PLACE A SCAN ON THEM.</p><p></p><p>This has been standard operating practice for Express Couriers for YEARS now - don't scan Ground packages, bring them into the station and have the CSAs PUP them (which shouldn't technically be processing non-express volume either, since they are covered under RLA rules). I'm still waiting for the bomb to drop and have FedEx move Express CSAs under FedEx Services (then "contract" out their services back to Express). Right now, CSA processing of Ground volume at Express stations is "under the radar" of the politicos. It's not a secret, but neither is anyone going to raise a stink about it either. </p><p></p><p>With this scan capability, an Express Courier can literally arrive at a customer's location (that has placed an oncall PU), find a Ground piece waiting, then perform a PUX to not indicate "Ground package only", then leave it, but rather a PUX that has "Ground package pickup" - scan the piece, then leave with it. This is a revenue generating event - which takes the RLA classified Courier OUT from the operating restrictions of RLA, and into what is classified as work under NLRA rules.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 891205, member: 22880"] When it comes to the RLA, how FedEx shuffles around it cash it IRRELEVANT. Have a holding corportation (FedEx Corp), create an operating company (Ground, Freight, Office, etc.). fund said operating company with cash and make the necessary accounting notations (debit cash, debit equity for holding company - credit cash, credit liability account for opco). As opco operates, it generates revenue and eventually profit - as profitability enables initial infusion of cash to be "repaid" to holding company, it does do. Holding company shows profitability. Opco can contract out for services from another opco of the holding company - money is exchanged for "services" rendered. Since FedEx doesn't engage in open competition when it does decide to have one opco perform services for another - one opco can and DOES charge what it wants to provide the service - money is shuffled around like this. The decision to contract out services by one opco ISN'T made by that opco - it is made by FedEx Corporation. This happens in many holding corporations and is perfectly legal - there is no requirement to obtain open competition for services or products - nor should there be. If Express wants to contract trucking out to a contractor (say Swift), it gets a quote and makes a decision as to whether or not to agree to the terms. If for some reason, FedEx Corporation decides that Freight is underutilized, it can make the decision to have Freight move the Express cargo (have a Freight tractor and employee pull an Express trailer) - again, no big deal. Even if FedEx Corp decides that the contract between Freight and Express for this service will result in charges that are GREATER than the rate offered by Swift in this instance, that is OK too - all perfectly legal. It is how cash is moved around and excess capacity of one opco is utilized rather than having that opco take a loss and have a net outflow of cash from the corporation AS A WHOLE. The having of one opco provide services to another is IRRELEVANT for the purposes of RLA classification of employees of a single operating company (FedEx Express). The "default" categorization of a company's labor for purposes of organizing is to be under the National Labor Relations Act (NLRA), which is administered by the National Labor Relations Board (NLRB). In order for a company to be categorized under the highly restrictive RLA (restrictive from a labor organizing and strike potential) - it must meet certain criteria. One of these criteria is that employees have to be engaged in activity that is solely related to the "express" movement of either passengers or cargo. If the employee is to be engaged in activity which doesn't meet this (and other) criteria, they must be categorized under NLRA organizing rules. UPS moves plenty of "express" air cargo around. However, since they operate as an integrated SINGLE company for their package movement, they remain classified under NLRA rules - and thus why the Teamsters are in UPS. Apart from the millions in lobbying expenses FedEx Corporation has spent to keep Express categorized under the RLA, the reason Express has remained under RLA classificaiton rules is that its employees engage in the movement of "express" cargo ONLY. They don't engage in the movement of non "express" (definitions under RLA) cargo. This is the reason that all the opco's exist - if Federal Express had expanded into the businesses that it currently has without creating separate opcos -there would've been NO WAY for Federal Express to keep the employees of the "original Express", under RLA - and thus keep the Teamsters and every other union out. FedEx is organized the way it is for one primary purpose - to make it either impossible or virtually impossible for a union to get in - excepting those darn pilots, who couldn't be intimidated by Fred. The capability of Express to have its Couriers place a scan ([U]a revenue generating event)[/U] on a Ground package - has changed the game. With this, Express Couriers are now no longer operating SOLELY as movers of "express" cargo (defined by the RLA) but rather are ordinary delivery truck jockeys. THis means that they fall outside the intent of RLA restrictions, and should be moved over to NLRA organizing rules. When I was a Courier, I can't remember EVER seeing a PUX that allowed a scan to be placed on a Ground package. The individual that I suggested to attempt a scan should he come across a Ground package - wasn't even aware the PUX was available. He (and everyone in the station) were instucted to bring any Ground packages they found in their drop boxes back to the station WITHOUT ATTEMPTING TO PLACE A SCAN ON THEM. This has been standard operating practice for Express Couriers for YEARS now - don't scan Ground packages, bring them into the station and have the CSAs PUP them (which shouldn't technically be processing non-express volume either, since they are covered under RLA rules). I'm still waiting for the bomb to drop and have FedEx move Express CSAs under FedEx Services (then "contract" out their services back to Express). Right now, CSA processing of Ground volume at Express stations is "under the radar" of the politicos. It's not a secret, but neither is anyone going to raise a stink about it either. With this scan capability, an Express Courier can literally arrive at a customer's location (that has placed an oncall PU), find a Ground piece waiting, then perform a PUX to not indicate "Ground package only", then leave it, but rather a PUX that has "Ground package pickup" - scan the piece, then leave with it. This is a revenue generating event - which takes the RLA classified Courier OUT from the operating restrictions of RLA, and into what is classified as work under NLRA rules. [/QUOTE]
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