Question for FedEx Contractors/Multiple Route Owners

Discussion in 'FedEx Discussions' started by sjh, May 23, 2012.

  1. sjh

    sjh Member

    My husband has been meeting with the manager at his terminal on a consistent basis since February of this year, when he was told that his contract is at risk and may be sent up for review if things don't change.

    We've been working endlessly on this, but this morning he met with the manager again, who wasn't happy and said she's making a final decision in the next month or so. Here's the breakdown:

    My husband has 9 drivers who deliver an approximate total of 1200 stops per day (350k+ stops a year). He has 4 PSA's under his contract, although one is actually owned by the driver who is treated as an employee for tax purposes. Thirty percent of his delivery area(s) are apartment buildings.

    These are his claims and complaints numbers for his entire contract...

    Claims: averaged 10.5 a month last year (lower during off season, higher during peak...but averages to 10.5 month) - yes, we realize that is high.

    Claims in last three months (filed/paid out): 11/4, 9/4, 4/3

    Complaints: 11 total in past 12 months

    In the meeting today, he was informed that his 4 claims filed and 3 paid out is NOT an improvement since the ratio of filed/paid out is higher....even though both numbers are smaller than the past two months, and smaller than his average for last year. This is what is pushing them to not renew his contracts.

    Actions he has taken:

    My husband has reviewed nearly EVERY claim that came in over the past several months and had already let go of the guys who brought in about 90% of them. The other big offender for complaints was the driver who owned the fourth PSA, and in the past two weeks my husband has worked on a contract to buy the route from him. He will pay him for the route in the next day or two, and the driver's final day will be tomorrow.

    My husband has been working endlessly on improving his numbers, but we're both tired because nothing seems to be enough to keep his routes. Thankfully, if he loses his contract and we can't sell quickly enough, I am an approved driver and he will simply sign the routes over to me while we continue to try to sell. =(

    Essentially, we'd love to know what other percentages are in other terminals. Are his claims and complaint numbers outrageous and we just don't realize it? They don't seem to care about employee numbers or package percentages...just the final number of claims and complaints. But we'd like to know - what are your employee averages and claim/complaint averages, and have your contracts ever been threatened as a result of your numbers?

    My husband is a HARD worker and we have kept our personal salary low so as to pay off all business debt. His employees love him, and other drivers respect him. He started a tire business to change out tires at the terminal, and a good portion of the contractors use him. This has saved a lot of butts at inspection time. =) My husband runs his business with a lot of integrity, and that's been noticed by several people. He has also taken on a lot of extra territory, when needed, to help the terminal out. He runs several supplements, and hasn't received a new PSA in over 2 years despite his high delivery numbers. It just seems like he has the worst luck now, and we can't figure it out.

    Thanks for any input. Feel free to PM if you don't want the information public.
    Last edited: May 23, 2012
  2. bbsam

    bbsam Moderator Staff Member

    First of all, relax. I will respond more later, but terminating a contract is very, very difficult. Also, legal would probably not go for it anyway.
  3. brownmonster

    brownmonster Man of Great Wisdom

    So much for being an "independent contractor". I know, I dont have a clue.