Should It Come As A Surprise?

[fedx]

His last day on the job.

 

[FalconAss]

His last day on the job.

Unless he's in a station that needs people so bad they don't care. My station is letting drug addicts drive after getting in accidents and not going for a piss test when told too. Drivers allowed to physically push managers. And knife fights on the sort. I want to flim it and make a reality show. Inmates run the asylum at some places these days.

 

[yadig]

Good for him.
People at my station are talking about new job ride-alongs right in front of our manager's face. There is no such thing as job loyalty when FedEx is more concerned about raising wages and lying to new hires than they are about trying to keep the people they already have.

Dano says higher wages and great benefits don’t attract or retain employees. FedEx is doing just fine with this current pay tier program

 

[bbsam]

Dano says higher wages and great benefits don’t attract or retain employees. FedEx is doing just fine with this current pay tier program

I always wondered who did that study and how much they were paid to come up with that conclusion.

 

[MAKAVELI]

Domestically Express delivers 2.8 million. Your number is total worldwide.

The worldwide number is there because Express is a worldwide system. Ground may deliver more domestic volume but Express revenue per pkg is more than double that of ground. The point is Ground's profitability and Express's lack of profitability are intertwined with each other. FedEx has essentially gotten too big to keep two separate OPCOs domestically to operate efficiently and profitable. The UPS model is the only way to be solvent for the future. The contractor model just won't survive much longer as a part of FedEx.

 

[It will be fine]

The worldwide number is there because Express is a worldwide system. Ground may deliver more domestic volume but Express revenue per pkg is more than double that of ground. The point is Ground's profitability and Express's lack of profitability are intertwined with each other. FedEx has essentially gotten too big to keep two separate OPCOs domestically to operate efficiently and profitable. The UPS model is the only way to be solvent for the future. The contractor model just won't survive much longer as a part of FedEx.

The question is which system will absorb the other. There is a significantly higher capex hit for express to try to handle ground volume than the other way around. 100k trucks is nothing to sneeze at. The Ground network could handle all the Express deferred volume tomorrow and it wouldn’t be as busy as peak 2020. The Express network would have to quadruple in size and they don’t even maintain enough equipment for their current volume.

 

[MAKAVELI]

The question is which system will absorb the other. There is a significantly higher capex hit for express to try to handle ground volume than the other way around. 100k trucks is nothing to sneeze at. The Ground network could handle all the Express deferred volume tomorrow and it wouldn’t be as busy as peak 2020. The Express network would have to quadruple in size and they don’t even maintain enough equipment for their current volume.

Ground can't handle all our deferred volume. That's why 4Z is coming back in 24 markets. Lol. Secondly the Express system could quadruple in size by combining ground and Express stations, which they are starting to do. As far as vehicles go that would be a cost they would have to incur to be as efficient as UPS. Short term there would be huge capital costs long term the company would be efficient, solvent and profitable.

 

[Thebrownblob]

I don’t pretend to know that much about FedEx ground. But for many years the drivers on my route we’re pretty solid, and I even knew who they were. Over the last two years I have two routes who pick up and deliver in my area and they’ve been changing constantly. Apparently Whoever owns these routes cannot keep employees. FedEx express guy has been the same person for quite some time.

 

[bbsam]

I don’t pretend to know that much about FedEx ground. But for many years the drivers on my route we’re pretty solid, and I even knew who they were. Over the last two years I have two routes who pick up and deliver in my area and they’ve been changing constantly. Apparently Whoever owns these routes cannot keep employees. FedEx express guy has been the same person for quite some time.

Highly Paid Union Workers Give UPS a Surprise Win in Delivery Wars

FedEx’s less costly contractor drivers were supposed to give it an edge. But labor shortages are hobbling services.

www.bloomberg.com

This article explains it perfectly. FedEx engineers seem to have the upper hand in calling the shots. It’s a seriously flawed model that everyone in operations sees and has to live with.

By January of next year I’m betting they will need to seriously reassess their position. It’s going to get very, very ugly. And they’ve been told so time and time again.

 

[bacha29]

Highly Paid Union Workers Give UPS a Surprise Win in Delivery Wars

FedEx’s less costly contractor drivers were supposed to give it an edge. But labor shortages are hobbling services.

www.bloomberg.com

This article explains it perfectly. FedEx engineers seem to have the upper hand in calling the shots. It’s a seriously flawed model that everyone in operations sees and has to live with.

By January of next year I’m betting they will need to seriously reassess their position. It’s going to get very, very ugly. And they’ve been told so time and time again.

As much as a person hates to say it or see it, the only thing that will save them is a steep and prolonged recession where once again it becomes an employers labor market.

 

[bbsam]

As much as a person hates to say it or see it, the only thing that will save them is a steep and prolonged recession where once again it becomes an employers labor market.

I doubt that the recession will hit fast enough to save them. Peak isn’t far away.

 

[It will be fine]

Ground can't handle all our deferred volume. That's why 4Z is coming back in 24 markets. Lol. Secondly the Express system could quadruple in size by combining ground and Express stations, which they are starting to do. As far as vehicles go that would be a cost they would have to incur to be as efficient as UPS. Short term there would be huge capital costs long term the company would be efficient, solvent and profitable.

Buildings are one small part of the equation. Express could not realistically quadruple in size. They don’t have the trucks, drivers, management staff, knowledge etc. It would be a self inflicted wound worse than the UPS strike.

 

[59 Dano]

I remember when I started a few years back, a "mentor" of mine (I think he could have been Mr. FedEx, but not certain-because he kept talking to me about Mr. FedEx and then left the company the same time MFE says he left) talked about how someday FedEx Express/Ground would merge to be like UPS where ground and air packages are on the same vehicle.

Considering the sheer volume of nonsense MF spewed, you still believed him?

Now Express is pulling their "last mile optimization" trick to keep their RLA protection

LMO being used or not being used has no impact on RLA classification either way.

 

[59 Dano]

I always wondered who did that study and how much they were paid to come up with that conclusion.

LOL, yadig made it up and attributed it to me because he's not smart enough for normal discussions.

 

[bbsam]

LOL, yadig made it up and attributed it to me because he's not smart enough for normal discussions.

Actually I’ve heard local management staff say exactly the same thing.

 

[floridays]

LMO being used or not being used has no impact on RLA classification either way.

That is a correct statement.

 

[59 Dano]

Actually I’ve heard local management staff say exactly the same thing.

I've never heard anyone in my life say it until I read yadig's claim that I said it. Go figure.

 

[floridays]

Actually I’ve heard local management staff say exactly the same thing.

Git his ass, Sam.

 

[MAKAVELI]

Buildings are one small part of the equation. Express could not realistically quadruple in size. They don’t have the trucks, drivers, management staff, knowledge etc. It would be a self inflicted wound worse than the UPS strike.

It's a pick your poison type of thing. Status quo = a massive failure at ground and forcing a higher pay structure and more power to contractors or incur the costs to merge and become one efficient all employee model like UPS. FedEx painted themselves into a corner and either direction is going to hurt but only one will give them total control and and long-term stability.

 

[floridays]

I've never heard anyone in my life say it until I read yadig's claim that I said it. Go figure.

I've got a line on your mindset, through your words:

So you're the greatest thing since sliced bread, according to managers who cheat you. Alrighty then. More importantly...

I guess we have differing philosophies about what to expect from employers. I don't see my employer (or any employer) as a pay & benefits company that delivers packages on the side. I don't see any reason for them to throw fat raises at me just because I stuck around. It became obvious to me a good 20 years ago that any job can disappear at any time with little or no warning. A business won't keep doing things that it can't afford to do no matter how hard you used to work. It's safe to say that most employees' concern and interest of their employer and their related industry begins and ends with their paychecks. That doesn't stop them from trying to dictate how things should be in the workplace.

I'm just trying to figure you out.