Rates going up 4.9%

[FedExer267]

I understand why companies raise rates everyone is in business to make a buck but what I am wondering is why FedEx is raising rates the same percentage as UPS.
Ups needs to raise rates to keep their employees taken care of. Plus you know they want to make money too after all they are the Empire of package delivery.
The question I have is why FedEx continues to follow UPS. Where is the money going? Do Contractors get more every year when rates go up? I dont see how being they are in a contract. Do Express employees get more? dosent sound like they get much more.
Ups is one thing look at the hourly rate and benefit package they get not to mention the perks of paid holidays and weeks of vacation.
When you come down to it the price of shipping ground UPS vs FedEx is only like 70 cents.
FedEx prides themselves on being a lower cost option however its not that much lower. If they are already making billions why raise rates at all its not like any of us are going to see a diffrence. Where does the money go?

 

[MrFedEx]

I understand why companies raise rates everyone is in business to make a buck but what I am wondering is why FedEx is raising rates the same percentage as UPS.
Ups needs to raise rates to keep their employees taken care of. Plus you know they want to make money too after all they are the Empire of package delivery.
The question I have is why FedEx continues to follow UPS. Where is the money going? Do Contractors get more every year when rates go up? I dont see how being they are in a contract. Do Express employees get more? dosent sound like they get much more.
Ups is one thing look at the hourly rate and benefit package they get not to mention the perks of paid holidays and weeks of vacation.
When you come down to it the price of shipping ground UPS vs FedEx is only like 70 cents.
FedEx prides themselves on being a lower cost option however its not that much lower. If they are already making billions why raise rates at all its not like any of us are going to see a diffrence. Where does the money go?

More money for the pilots and execs, but not us. As long as Smith has the Ground scam and the Express RLA Exemption, we're not going to see anything at our level. So, until we have some sort of leverage, absolutely nothing is going to change. As crappy as the Teamsters are, at least we would be negotiating for something instead of accepting whatever crumbs Fred decides to toss our way.

When are most of you going to figure it out?

 

[FedExer267]

I would take paying monthly dues for any kind of benefits and a fair days wage at this point.

 

[vantexan]

When are most of you going to figure it out?

But if the Teamsters won't do a national vote, which they could, then what option do we have? We can talk all day about how we need a union, but what good does that do? I should've known that a bunch of namby pamby liberal wingnuts would wimp out on us.

As far as the 4.9%, I see that as a positive. If FedEx is determined to maintain profit margins then most likely with the rate hike we will see a regular raise in March. If they didn't raise rates you can bet we wouldn't see a raise, or at least a full raise. Of course what passes as a full raise at this company means after factoring in taxes and healthcare costs we're not much better off. If they gave a rat's behind they'd restructure the pay in a way that's fair and equitable. But heaven forbid that they actually care about their employees, other than what we can do to make them wealthier.

 

[FedExer267]

I wish for the best of my Express counter halfs. I know all the drivers in my area and they are great men and women. What I wonder is they are raising rates for all entities of FedEx by 4.9 % and I hope you guys get your due reward, but with Smith I am sure it will not happen.
My question is with the rate change at Ground where does the money go. I already know Contractors get paid per stop, per package thats delivered and picked up. They get a advertising rate for us driving around with FedEx on the side of the truck and for wearing it on the required uniform. They also get I believe its a extra dollar for every signature we obtain however if that is indeed the contract that they are under it won't change. Where does it go it dosen't go to any of the drivers as they don't pay us or supply benefits. If they pride themselves on being a cheaper ground option why raise rates why not leave them where they are currently and try and corner the market, That would make more sense to me. Does it all go in Smiths pocket or does he use what he makes from Ground on the Express side. If he does use it on the Express side why does it take 20 years for you guys to top out?
The only diffrence in the shipping is about 70 cents and most people I know prefer the quality of UPS than that of Ground.

 

[vantexan]

FedEx had a profit of 1.18 billion dollars in Fiscal Year 2010, which ended May 31, 2010.
That's for the entire corporation after all expenses. Out of that they will pay stock dividends, reinvest in the company, etc. There are strict accounting rules for tax purposes which if violated would result in prison terms. That's not a maybe, laws are in place to protect stockholders and make sure the gov't gets it's cut. FedEx may be raising rates for a number of reasons. Maybe fuel prices are projected to go higher. Making higher profits is certainly a reason. Alot of planning goes into everything they do, so they do have reasons. Anticipating problems, that sort of thing. I'm not happy with the pay, but I don't believe they're greedy dimwits who are constantly reacting to problems. These are hard-nosed, pragmatic businessmen. This is their golden goose, so rest assured that they have their reasons. They have made mistakes in the past, not saying they're perfect. But I believe their mistakes, and the resulting losses and lawsuits, have made them much more careful and efficient. And thus any raise we get will be because they know they've pushed us to the breaking point so they have to give us something. But they seemed to be searching for the sweet spot where they can pay us as little as possible and still retain most of us. And with this economy they are definitely winning that battle.

 

[Brown287]

Interesting topic you guys are talking about. At UPS we have contractual expenses incurred by UPS every year of a contract. When my customers ask about our rate increases I have a long list of reasons why they do or don't go up. There is no guessing or wondering about rates, I see first hand every Friday why we charge what we do. I was recently talking with this Express driver and they were explaining the pay structure at Express, she was amazed that we have a National pay structure and that give or take 75 cents we all make the same. Apparently you Express drivers in areas of low cost of living, make much much less then your counter parts in more expensive areas. So there is another question for you to ponder, why it is that cost to ship to rural areas is actually more expensive, but apparently the drivers make so much less? I guess they are just not worth as much to the company as other drivers.

 

[Cactus]

More money for the pilots and execs, but not us. As long as Smith has the Ground scam and the Express RLA Exemption, we're not going to see anything at our level. So, until we have some sort of leverage, absolutely nothing is going to change. As crappy as the Teamsters are, at least we would be negotiating for something instead of accepting whatever crumbs Fred decides to toss our way.

When are most of you going to figure it out?

That's the real P-S-P (Profit in Smith's Pocket) for 'ya.

 

[Cactus]

There are strict accounting rules for tax purposes which if violated would result in prison terms.

Well Fred should be facing life behind bars then if this is the case.

 

[FedExer267]

I was just wondering where the money goes because FEDEX is a billion dollar company and I can't even get a jacket to keep me warm in the winter months. They require it but won't supply it and apparently my contractor dosen't make enough money to get his drivers jackets what a bunch of crap.

 

[packageguy]

I'm not surprised, I think if someone investigates fdx practice they will find lots of things wrong.
It's funny because ups always seems to get bad reviews. we are teamsters---- fdx ground could not there way out of a paper bag. I see them in my area customers always complaining they driver release business it's a joke

 

[FedExer267]

Hahaha yep that dosen't suprise me couple years back we had a driver DR a business on a Friday evening the package was stolen ofcourse, and the driver got fired the contractor then decided to keep his last paycheck to pay for part of the claim.

 

[Mr. 7]

Apparently you Express drivers in areas of low cost of living, make much much less then your counter parts in more expensive areas. So there is another question for you to ponder, why it is that cost to ship to rural areas is actually more expensive, but apparently the drivers make so much less? I guess they are just not worth as much to the company as other drivers.

Yep,
I live in one of the "low cost of living" areas and am paid $16.80/hr. accordingly. This is after 4 yrs. and a perfect record. Meanwhile, we have a guy come from "over there" to help us occasionally and he's topped out over there at $28.+/hr.

And, you're dead right about X charging more for "rural" dels. (like where I live) but, pay the drivers less.

 

[MrFedEx]

Yep,
I live in one of the "low cost of living" areas and am paid $16.80/hr. accordingly. This is after 4 yrs. and a perfect record. Meanwhile, we have a guy come from "over there" to help us occasionally and he's topped out over there at $28.+/hr.

And, you're dead right about X charging more for "rural" dels. (like where I live) but, pay the drivers less.

He's referring to the "Market Level" scam. where we have numerous multiple payscales based on your area's "cost of living". A courier in a major market makes significantly more money than someone in a rural area. Supposedly, FedEx carefully calculates a "fair" rate of compensation, which is another way of saying that they save huge money by paying much lower wages based on a geographical line in the sand. My station hasn't had a market level change in almost 20 years. Someone in a rural or semi-rural area is making a very low hourly rate compared to a courier in NYC or SFO.

I know, I know...it costs more to live in a big city and attract employees...I get it. But what most of you do not get is the vast discrepancy that exists, which is demonstrated by Mr 7's post. Add-in the 20 year wage progression, and you're making peanuts. SCAM.

 

[vantexan]

Yep,
I live in one of the "low cost of living" areas and am paid $16.80/hr. accordingly. This is after 4 yrs. and a perfect record. Meanwhile, we have a guy come from "over there" to help us occasionally and he's topped out over there at $28.+/hr.

And, you're dead right about X charging more for "rural" dels. (like where I live) but, pay the drivers less.

Hate to disagree, but the lowest payscale, the "B" payscale, starts at just over $14hr. Since there was no raise last year and a 2% this year, no way you can be at $16.80hr after 4 years on the lowest payscale. Also, there's no payscale that tops out at $28hr. Possibly a topped out swing working in the Silicon Valley area is making over $26hr, possibly New York, Alaska, Hawaii, parts of California too.

I was rehired at $10.85hr on the B payscale 12 years ago. I've taken hits dropping from swing to courier twice and am at $17.09hr. I wish I lived in a "cheap" area and was at $16.80hr after only 4 years!

FedEx doesn't just pay low pay in cheap areas. Just ask people living in places like Jackson, WY, Santa Fe, NM, or Flagstaff, AZ and others. Costs similar to California but paying the second lowest payscale out of 7 payscales. Because these are desirable places to live FedEx always finds people willing to transfer in or locals desperate for a job so they don't feel the need to pay any better. Taking a job there insures you'll live a step above poverty but hey, just look at that scenery! There was a ski area in Colorado, can't remember the name, that they tried to pay the lowest payscale. Kept seeing JCATS postings that kept going up in pay until finally stopped at friend pay. Talked to mgr there who told me that there was such high turnover due to pay that they gas to raise it to keep people. But in a place like Flagstaff, AZ there's a large enough population that they can keep the pay down and always find someone. Important to note that if they knowingly keep pay down when average homes cost $350k+, then what do we think they're willing to do for the rest of us?

 

[vantexan]

My iPod Touch takes liberty suggesting words as I type so if you see something weird, like "gas" instead of "had" blame Apple.

 

[FedExer267]

My iPod Touch takes liberty suggesting words as I type so if you see something weird, like "gas" instead of "had" blame Apple.

Gotta love technology!!!! LOL

 

[Brown287]

Interesting on how this pay structure is set up. I can see how some people who have not done the job can say that the various wages are sufficient. With that said once you walk in our shoes for a day you quickly see how the higher wage is truly earned. At FDX they have a system in play that can and apparently does discriminate against workers that other wise would not be tolerated. A union would make a point to set up a base pay structure that CLEARLY mandates a structure that you all would understand and except.

 

[FedExer267]

Interesting on how this pay structure is set up. I can see how some people who have not done the job can say that the various wages are sufficient. With that said once you walk in our shoes for a day you quickly see how the higher wage is truly earned. At FDX they have a system in play that can and apparently does discriminate against workers that other wise would not be tolerated. A union would make a point to set up a base pay structure that CLEARLY mandates a structure that you all would understand and except.

I like to say I walk in your shoes although I am nowhere near as busy as the UPS guys in my area. I just dont understand how we practically do the same job and believe me I don't believe I should be paid 30 bucks a hour as I am not busting out 175 stops a day however you would think that in this line of work it is worth more than 10 bucks a hour. Seriously I know how everyone looks down on the Ground drivers but it dosen't change the fact that we work hard to. Is this just something in Southern Cal or do the Ground drivers in your area seem like a happy group just curious

 

[FedEx2000]

Yep,
I live in one of the "low cost of living" areas and am paid $16.80/hr. accordingly. This is after 4 yrs. and a perfect record. Meanwhile, we have a guy come from "over there" to help us occasionally and he's topped out over there at $28.+/hr.

And, you're dead right about X charging more for "rural" dels. (like where I live) but, pay the drivers less.

The cost of a "rural" delivery has more to do with the fact that it is further from the ramp/station that services it, therefore it takes more mileage/fuel/man-hours to get the pkg there. Plus, routes that deliver these types of areas generally do very few stops in comparison to the in-town routes. I have one route that does 40 dels on a very heavy day. It's kind of like buying in bulk, the more you buy, the cheaper each unit is.

I understand the argument that couriers in "low-cost" areas do the same job, etc.....but look at it from the other side, UPS drivers in NYC/Chicago/etc are not making much in comparison to a UPS driver in Montana who does 1/4 of the stops they do and is living like a king. There are Pros and Cons to both systems, in the end you choose where to live and can transfer, if you so choose.