One big happy family 🙃

[FalconAss]

From what I understood and I watched it. The merger is more so on the corporate side to provide flexibility between the 2 platforms. But I am an idiot.

 

[lilwizbiz]

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

Oh no I know it won’t be beneficial. This could also all be bull to give the shareholders something so they don’t sell their shares.

 

[bacha29]

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

No they will not become directly employed by the newly created Federal Express Corporation. Express the free standing operating company will cease to exist. Those who are currently employed by that OPCO now have to wait and see who among them will be offered employment by the new company.

 

[bacha29]

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.

And an avalanche of abandoned rural routes on a scale never seen before.

 

[zeev]

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

Express drivers will not work for Ground contractors they pay even less, to many other opportunities for drivers out there. Watch for Freight to become the biggest Ground contractor doing line haul and actually delivering packages it’s been going on already in my area. Time for Ground contractors to hold out for a better deal it’s now or never.

 

[bacha29]

Express drivers will not work for Ground contractors they pay even less, to many other opportunities for drivers out there. Watch for Freight to become the biggest Ground contractor doing line haul and actually delivering packages it’s been going on already in my area. Time for Ground contractors to hold out for a better deal it’s now or never.

Spencer Patton who was at one time the biggest FXG contractor tried that...and we all saw what happened there.

 

[Thebrownblob]

No they will not become directly employed by the newly created Federal Express Corporation. Express the free standing operating company will cease to exist. Those who are currently employed by that OPCO now have to wait and see who among them will be offered employment by the new company.

How the hell do they even get away with this?

 

[It will be fine]

How the hell do they even get away with this?

Get away with what? This is America. If FedEx wants to reorganize to lower overhead and eliminate redundancies, they are free to do so.

 

[deadman]

Which is more realistic express taking over 10 million packages and tripling in size or ground getting a 30% bump in volume?

express is on a hiring freeze LMO is being used to slowly drain away their volume and come june 2024 express will be gutted to a skeleton. the remaining express drivers will be for FO and certain deliveries that make sense and as a Gestapo contingency unit to make sure nobody gets any ideas like patton did.

 

[Thebrownblob]

Get away with what? This is America. If FedEx wants to reorganize to lower overhead and eliminate redundancies, they are free to do so.

Exactly because they have no one representing their workers interests. To a corporation you are meaningless. They’ll just re-organize and hide behind their political clout that they bought and possibly maybe out of the goodness of their heart offer you the option to work for them again. God bless America.

 

[zeev]

Which is more realistic express taking over 10 million packages and tripling in size or ground getting a 30% bump in volume?

express is on a hiring freeze LMO is being used to slowly drain away their volume and come june 2024 express will be gutted to a skeleton. the remaining express drivers will be for FO and certain deliveries that make sense and as a Gestapo contingency unit to make sure nobody gets any ideas like patton did.

 

[bacha29]

Exactly because they have no one representing their workers interests. To a corporation you are meaningless. They’ll just re-organize and hide behind their political clout that they bought and possibly a maybe Iand maybe out of the goodness of their heart offer you the option to work for them again. God bless America.

Think of it along the lines of the "old" General Motors and the "new" General Motors. The people employed at the "old" General Motors were no longed employed because the company no longer existed.

If you are a contractor contracted with Fedex Ground....you no longer have a contract. Fedex Ground....no longer exists.

Same holds true if you're currently a directly employed Fedex Express employee. It's over at least for the time being.

The shrewdness of what they are doing here is what really stands out. They now have a blank sheet to reconfigure the company with little to no opposition in whatever manner they want.

Now if you're a former Express employee and you're rehired or if you're a FXG contractor and you're offered a new contract it's nothing to feel fortunate about given the feces storm coming your way.

I can see further reductions in company employed worker pay and benefits. And I can see contractors paying out every single settlement dollar just to keep his routes in operation.

 

[zeev]

Which is more realistic express taking over 10 million packages and tripling in size or ground getting a 30% bump in volume?

express is on a hiring freeze LMO is being used to slowly drain away their volume and come june 2024 express will be gutted to a skeleton. the remaining express drivers will be for FO and certain deliveries that make sense and as a Gestapo contingency unit to make sure nobody gets any ideas like patton did.

Freight assumes the Gestapo role now keeping payments to Ground contractors low.

 

[yadig]

It sounds like no one really knows how this turns out., even raj. My manager told us this morning that the company is slowly gonna weed out the contractors and be like the ups employee model. He claims the contractors fulfilled their purpose to grow the company and now we have to better manage “employees “.

 

[TUT]

This is a move Fedex needed to make, one company, one driver for small package, one set of rules. Customers have wanted this since the start, Fedex teams had to sell through this. How this plays out exactly for drivers is yet to be seen. The smart move imo is to make the drivers employees. That part will cost more, but the rest of this transition are savings and increased revenues that more than offset just driver cost increases. Less systems to maintain, savings. Station/Driver consolidation, savings. Many more things in savings. On the revenue end expect the following, some companies are unapproachable because of these different opco's. Better support from A to Z for customers using a single rule set so shipper satisfaction will rise and with that revenue. Driver retention will also be higher and much needed. This is a major day in Fedex history.

 

[MassWineGuy]

From a business sense, it’s years overdue. But I’m also glad that I’m close enough to retirement that it may have less impact.

 

[deadman]

It sounds like no one really knows how this turns out., even raj. My manager told us this morning that the company is slowly gonna weed out the contractors and be like the ups employee model. He claims the contractors fulfilled their purpose to grow the company and now we have to better manage “employees “.

The amount of capital required to replace the contractors (managers), drivers, trucks, scanners, safety tech. and all other items makes this pretty much impossible. the current FedEx fleet is made up of predominantly sprinters and p500s which in no way could remotely handle the influx of volume.
Thats not even to include the new liabilities that are incurred with doing that.

my smallish building would require around 100 p1000s and 25 sprinters which is currently sitting somewhere north of a 7mil investment for a building that does just about 1 mill packages per year.

your manager is either on drugs or some extreme levels of copium.

 

[deadman]

This is a move Fedex needed to make, one company, one driver for small package, one set of rules. Customers have wanted this since the start, Fedex teams had to sell through this. How this plays out exactly for drivers is yet to be seen. The smart move imo is to make the drivers employees. That part will cost more, but the rest of this transition are savings and increased revenues that more than offset just driver cost increases. Less systems to maintain, savings. Station/Driver consolidation, savings. Many more things in savings. On the revenue end expect the following, some companies are unapproachable because of these different opco's. Better support from A to Z for customers using a single rule set so shipper satisfaction will rise and with that revenue. Driver retention will also be higher and much needed. This is a major day in Fedex history.

This will go the exact same way as smartpost did. LMO will begin removing duplicate stops from express and having ground deliver them then move to "nearby" stops and then there will be a final bump where the rest is integrated. the cost of running an express driver is near $40 an hour when you factor in trucks, wages, benefits, ect. the cost for ground is between .15-.30 per package and 1.25-4 per stop (urban vs rural)

 

[yadig]

The amount of capital required to replace the contractors (managers), drivers, trucks, scanners, safety tech. and all other items makes this pretty much impossible. the current FedEx fleet is made up of predominantly sprinters and p500s which in no way could remotely handle the influx of volume.
Thats not even to include the new liabilities that are incurred with doing that.

my smallish building would require around 100 p1000s and 25 sprinters which is currently sitting somewhere north of a 7mil investment for a building that does just about 1 mill packages per year.

your manager is either on drugs or some extreme levels of copium.

Sinking ship

 

[bacha29]

This is a move Fedex needed to make, one company, one driver for small package, one set of rules. Customers have wanted this since the start, Fedex teams had to sell through this. How this plays out exactly for drivers is yet to be seen. The smart move imo is to make the drivers employees. That part will cost more, but the rest of this transition are savings and increased revenues that more than offset just driver cost increases. Less systems to maintain, savings. Station/Driver consolidation, savings. Many more things in savings. On the revenue end expect the following, some companies are unapproachable because of these different opco's. Better support from A to Z for customers using a single rule set so shipper satisfaction will rise and with that revenue. Driver retention will also be higher and much needed. This is a major day in Fedex history.

You're overlooking a matter that is spelled with 3 simple words.....RLA.