PEAK?

vantexan

Well-Known Member
ALL OF ITS PROFITS? Can't imagine any public company doing that. I would imagine Wall Street might not like that and how would you fund future endeavors if you gave away all of your profits.
Try to keep up...I'm saying Bacha will never be satisfied, as well as others here, until FedEx literally shells out everything to the employees. You may not have been here, but I've repeatedly pointed out that the nature of overnight air delivery costs much more per package so the money just isn't there to pay like UPS does, which many here refuse to accept or believe.
 

bacha29

Well-Known Member
Try to keep up...I'm saying Bacha will never be satisfied, as well as others here, until FedEx literally shells out everything to the employees. You may not have been here, but I've repeatedly pointed out that the nature of overnight air delivery costs much more per package so the money just isn't there to pay like UPS does, which many here refuse to accept or believe.[/QUOTE Has the workforce at X ever had the opportunity to test that theory? UPS haul it's fair share of air box and still able to pay industry leading compensation.
 

vantexan

Well-Known Member
According to Upstate about 10% of their freight is air. Notice how much profit increased at FedEx with the development of Ground? FedEx will be able to pay like UPS when Ground has a much higher percentage of the total freight. Highly unlikely that they will be willing to. But as is if you take all the profit Federal Express Corporation has annually and spend it on payroll they still won't have enough to pay everyone $35hr after 4 years and we haven't even started talking benefits yet.
 

bacha29

Well-Known Member
According to Upstate about 10% of their freight is air. Notice how much profit increased at FedEx with the development of Ground? FedEx will be able to pay like UPS when Ground has a much higher percentage of the total freight. Highly unlikely that they will be willing to. But as is if you take all the profit Federal Express Corporation has annually and spend it on payroll they still won't have enough to pay everyone $35hr after 4 years and we haven't even started talking benefits yet.
Ground's goal is to have 51% of the ground box market by 2020 Right now it's around 24%. Given the boocoo bucks they're making off that 24% now imagine what they'll be making if and when they get to 51%. But rest assured the money won't go to contractors let alone Xpress employees. It will go for management incentives and stock buybacks.
 

vantexan

Well-Known Member
Ground's goal is to have 51% of the ground box market by 2020 Right now it's around 24%. Given the boocoo bucks they're making off that 24% now imagine what they'll be making if and when they get to 51%. But rest assured the money won't go to contractors let alone Xpress employees. It will go for management incentives and stock buybacks.
They've already made their Express employees play. Because Ground is so valuable to the overall health of the company look to them paying more to Ground drivers through the contractors.
 

McFeely

Huge Member
How heavy are express packages compared to Ground? asking for a good friend byeeeeeeeee

TONS of variables here, even route by route. I deliver about 50 envelopes a day, but also 120# furniture on plenty of days. That being said, the G guy on my route delivers far more bulk/weight than I do.
 

It will be fine

Well-Known Member
They've already made their Express employees play. Because Ground is so valuable to the overall health of the company look to them paying more to Ground drivers through the contractors.
What have you been smoking? Hook a brother up.
They are going the opposite direction. Contracts are getting worse. Compensation is going down. Has been for the last year.
 

bacha29

Well-Known Member
They've already made their Express employees play. Because Ground is so valuable to the overall health of the company look to them paying more to Ground drivers through the contractors.
At the barn I was at contractor driver pay ran from $120-135 per day and that hasn't changed in the past several years. No overtime, no pension ,no healthcare and it didn't matter if it took 8 hours to do the route or 13 hours to do the route, it all payed the same. And it's not likely to change for the foreseeable future given the expected settlement cuts .
 

vantexan

Well-Known Member
TONS of variables here, even route by route. I deliver about 50 envelopes a day, but also 120# furniture on plenty of days. That being said, the G guy on my route delivers far more bulk/weight than I do.
And yet 2 people disagreed with me when I said essentially the same thing. Before there was a Ground young people Express couriers did it all. We had paper records, supertrackers instead of power pads, little tv screens in our cabs, paper airbills on most pkgs, wrote URSA codes with magic markers, drove stepvans full of boxes. The job is much different today although I will say that all the streamlining has made it possible for couriers to do more stops on average so today's courier might not have to schlep as many boxes but is still very busy.
 

vantexan

Well-Known Member
What have you been smoking? Hook a brother up.
They are going the opposite direction. Contracts are getting worse. Compensation is going down. Has been for the last year.
And they most likely are looking to make Ground as lean as possible but at some point will have to pay better unless there truly is an endless stream of people willing to work for $12-$14hr.
 

vantexan

Well-Known Member
At the barn I was at contractor driver pay ran from $120-135 per day and that hasn't changed in the past several years. No overtime, no pension ,no healthcare and it didn't matter if it took 8 hours to do the route or 13 hours to do the route, it all payed the same. And it's not likely to change for the foreseeable future given the expected settlement cuts .
Expect them in the future to put more into compensation as Ground grows larger and more important. After all as Ground grows more people will be needed to get the freight delivered. And if the overall economy improves they'll be competing for workers.
 

Southeast Hoss

Well-Known Member
Competing with for workers and for more space at each terminal.
Expect them in the future to put more into compensation as Ground grows larger and more important. After all as Ground grows more people will be needed to get the freight delivered. And if the overall economy improves they'll be competing for workers.
 

It will be fine

Well-Known Member
Expect them in the future to put more into compensation as Ground grows larger and more important. After all as Ground grows more people will be needed to get the freight delivered. And if the overall economy improves they'll be competing for workers.
That's a nice dream. I don't see it happening until there are widespread failures across the network. I don't think the brass quite understand the full impact of the ISP model and the difference in quality of a driver for a contractor and a single van operator. They will keep squeezing until it breaks or until the organic growth of the overall market slows and we actually have to compete for customers on service.
 
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