One big happy family 🙃

[dezguy]

It didn't clearly state that. It stated they will continue to use employees and contractors. How that plays out wasn't specific in the email. My guess would be most if not all dense urban areas would go full employees and rural areas would go to contractors.

My point is, contractors are still part of their solution.

 

[MAKAVELI]

My point is, contractors are still part of their solution.

The email was intentionally vague.

 

[Thebrownblob]

Did not see this coming.

FedEx to combine delivery units as part of a $4 billion cost-cutting push

FedEx said on Wednesday it will consolidate its separate delivery companies into a single entity, as the group slims its bloated infrastructure.

www.cnbc.com

The purge

 

[bacha29]

It didn't clearly state that. It stated they will continue to use employees and contractors. How that plays out wasn't specific in the email. My guess would be most if not all dense urban areas would go full employees and rural areas would go to contractors.

Did it say anything about company employed final mile route drivers? Face it. Right now you don't know who's hauling what where and on who's payroll they be on . And I don't think corporate knows itself.
What is known for certain is that Fedex Express and Fedex Ground will cease to exist. Express and directly employed Ground employees will legally be out of a job and can only wait and see if the new company will offer them employment.

Ground contractors who have always been without legal standing to begin with are now faced with the reality that the entity to which they are contracted no longer exists. On the other hand the contract itself was never binding upon Ground to begin with.

 

[yadig]

The purge

I like how they’re calling the company federal express again. Interesting

 

[MAKAVELI]

Did it say anything about company employed final mile route drivers? Face it. Right now you don't know who's hauling what where and on who's payroll they be on . And I don't think corporate knows itself.
What is known for certain is that Fedex Express and Fedex Ground will cease to exist. Express and directly employed Ground employees will legally be out of a job and can only wait and see if the new company will offer them employment.

Ground contractors who have always been without legal standing to begin with are now faced with the reality that the entity to which they are contracted no longer exists. On the other hand the contract itself was never binding upon Ground to begin with.

Express employees will still be employed by the Corp. Ground drivers were never employed by the Corp.

 

[bacha29]

I like how they’re calling the company federal express again. Interesting

While they're using an old name it is in reality a new company and therefore assume nothing. Just try to pay off debt, hold off on big ticket debt financed purchases and set aside cash until you see how this thing shakes out.

 

[zeev]

My prediction all small package delivery will be the contractor model, timing will depend on if there is Ground available, it’s the cheapest and there is an endless supply of labor, RTD s will be kept because of the driver shortage lots of Ground trailers to move, maybe eventually rolled into Freight, no need for them if there are no Express stations.

 

[bacha29]

Express employees will still be employed by the Corp. Ground drivers were never employed by the Corp.

Is this thing going to end up with Express employed drivers cohabitated with contractor employed drivers making far less money longer work days and zero benefits? While Fedex Corp employed drivers get the easy into routes while contractors get the money losing rural routes?

Is this the scenario you see playing out here?

 

[lilwizbiz]

Does this mean the company can unionize now?

 

[bacha29]

My prediction all small package delivery will be the contractor model, timing will depend on if there is Ground available, it’s the cheapest and there is an endless supply of labor, RTD s will be kept because of the driver shortage lots of Ground trailers to move, maybe eventually rolled into Freight, no need for them if there are no Express stations.

I expect that you'll see Express line haul operations going over to Ground linehaul contractors.

 

[dezguy]

Does this mean the company can unionize now?

Canada could always unionize but people were bought off with the BBQ crew. Now that mistake is coming home to roost.

 

[MAKAVELI]

Is this thing going to end up with Express employed drivers cohabitated with contractor employed drivers making far less money longer work days and zero benefits? While Fedex Corp employed drivers get the easy into routes while contractors get the money losing rural routes?

Is this the scenario you see playing out here?

Not at all. Combining all OPCOs but one into one says it all. Like I said, most dense urban areas will likely be all employees while the rural areas likely go contractor.

 

[Thebrownblob]

Canada could always unionize but people were bought off with the BBQ crew. Now that mistake is coming home to roost.

Yes, I can still hear some of the FedEx express drivers laughing as we were giving informational leaflets to them in the mornings, when they walked in to work asking for them to consider joining the union and contracting their elected representatives to remove the railway act special provision. They laughed., because we told them eventually FedEx Ground would swallow everything up and Express would be no more. Many of them said they had a good way it was and FedEx would never do that.

 

[Damon77]

If FedEx is going to have contractors deliver time sensitive overnight packages, I can see them financially penalizing contractors when those commits aren't met. More pressure on The Opco Formerly Known as Ground™.

 

[It will be fine]

Not at all. Combining all OPCOs but one into one says it all. Like I said, most dense urban areas will likely be all employees while the rural areas likely go contractor.

There’s no indication they would move dense urban areas to employees. That would be a massive capex hit in just vehicle purchases. They outlined lowering their capex over the next few years.

 

[lilwizbiz]

Yes, I can still hear some of the FedEx express drivers laughing as we were giving informational leaflets to them in the mornings, when they walked in to work asking for them to consider joining the union and contracting their elected representatives to remove the railway act special provision. They laughed., because we told them eventually FedEx Ground would swallow everything up and Express would be no more. Many of them said they had a good way it was and FedEx would never do that.

They’re not though. Corporate taking over pretty much everything. Express are corporate employees

 

[Thebrownblob]

They’re not though. Corporate taking over pretty much everything. Express are corporate employees

Meaning the contractor model and keeping the divisions separate.

 

[lilwizbiz]

Meeting the contractor model and keeping the divisions separate

Not really. Just becoming like UPS. Good news tho is now ground employees will become corporate employees. Or they may just lay a ton of people and hire their own guys. We will see in the future

 

[Thebrownblob]

Not really. Just becoming like UPS. Good news tho is now ground employees will become corporate employees. Or they may just lay a ton of people and hire their own guys. We will see in the future

FedEx has been nothing more than a snake, of a company throughout his whole existence by getting special political deals with the Railway act exemption, and the contractor model throughout their history.

If you believe this realignment will be beneficial to the workers I believe you’re mistaken