Smartpost offered to us contractors at lesser rate

[59 Dano]

Please refer to the CATO Institute policy statement regarding the USPS dated April 1,2016 .

I guess I missed the part where it said "The first step in that direction is to offer Smartpost freight to Ground contractors."

 

[bacha29]

I guess I missed the part where it said "The first step in that direction is to offer Smartpost freight to Ground contractors."

Fact 1. The CATO Institute in which Smith is an esteemed member made quite plain it's desire to privatize the USPS. Fact 2. Go back and read what I said. I said that it MIGHT BE the first step in that direction. Ever since you were promoted to 4th Assistant Vice President for Nonessential Operations you became firmly convinced that your point of view and projections are the only ones that are bankable including what may happen at Ground despite the fact that you never spent a day in the employment of FXG or any of it's contracted affiliates.

 

[59 Dano]

Fact 1. The CATO Institute in which Smith is an esteemed member made quite plain it's desire to privatize the USPS. Fact 2. Go back and read what I said. I said that it MIGHT BE the first step in that direction.

Fact 3. You read way way way way way tooooooo much into things.

Ever since you were promoted to 4th Assistant Vice President for Nonessential Operations you became firmly convinced that your point of view and projections are the only ones that are bankable including what may happen at Ground despite the fact that you never spent a day in the employment of FXG or any of it's contracted affiliates.

What position is it that you currently hold within the FDX organization?

 

[bacha29]

Fact 3. You read way way way way way tooooooo much into things.



What position is it that you currently hold within the FDX organization?

Is that your best comeback? If so I am very disappointed with you. I would rather read too much into matters than to be like you someone who doesn't read enough.

 

[59 Dano]

Is that your best comeback? If so I am very disappointed with you. I would rather read too much into matters than to be like you someone who doesn't read enough.

By "not reading enough" into the topic, I came to the conclusion that FedEx smartly figured that they'd make more money by keeping some of the Smartpost freight when they're already going to an address instead of paying the USPS to take it for them. Aaaaaaand that's exactly why they're doing it. That's my best comeback. No black helicopters, Bilderbergs, Illuminati, Trilateral commissions, etc. required.

 

[UpstateNYUPSer(Ret)]

We have been doing it this way since Day One. Proximity stops.

 

[bacha29]

By "not reading enough" into the topic, I came to the conclusion that FedEx smartly figured that they'd make more money by keeping some of the Smartpost freight when they're already going to an address instead of paying the USPS to take it for them. Aaaaaaand that's exactly why they're doing it. That's my best comeback. No black helicopters, Bilderbergs, Illuminati, Trilateral commissions, etc. required.

Among the first unpleasant realities a Ground contractor discovers is that there is not one single term or condition in that unilaterally drafted and implemented contract is considered by FXG to be binding upon itself. They freely admit it. If an opportunity comes along to improve it's already impressive profit margins they will implement it regardless of whether or not it is permissible under the terms of the contract. The change being made with Smartpost is just one of what have been many over the years and will result in the creation of a 2 tiered pay scale with the second one being much lower. Right now it's optional but if past history is any indication hauling Smartpost will someday become a mandatory contractual requirement with no negotiation regarding pay rate. They didn't do this with the contractor's margin in mind. They did it purely with their own in mind. As a result there a 2 things a contractor must be able to do. First, they have to greet little surprises such as these with the highest level of doubt and suspicion and secondly leaving themselves an out by keeping borrowed money to a minimum and limiting their exposure to risk and to variable costs to only that which they cannot avoid.And that my friend is why at Ground you keep you eyes wide open all the time and be prepared for every possibility because when not if they arrive the one thing you can be assured of. The interests of the contractors are always secondary to the interests of the company.

 

[Fred's Myth]

Among the first unpleasant realities a Ground contractor discovers is that there is not one single term or condition in that unilaterally drafted and implemented contract is considered by FXG to be binding upon itself. They freely admit it. If an opportunity comes along to improve it's already impressive profit margins they will implement it regardless of whether or not it is permissible under the terms of the contract. The change being made with Smartpost is just one of what have been many over the years and will result in the creation of a 2 tiered pay scale with the second one being much lower. Right now it's optional but if past history is any indication hauling Smartpost will someday become a mandatory contractual requirement with no negotiation regarding pay rate. They didn't do this with the contractor's margin in mind. They did it purely with their own in mind. As a result there a 2 things a contractor must be able to do. First, they have to greet little surprises such as these with the highest level of doubt and suspicion and secondly leaving themselves an out by keeping borrowed money to a minimum and limiting their exposure to risk and to variable costs to only that which they cannot avoid.And that my friend is why at Ground you keep you eyes wide open all the time and be prepared for every possibility because when not if they arrive the one thing you can be assured of. The interests of the contractors are always secondary to the interests of the company.

Always a team player.

 

[Fedexguyt]

Among the first unpleasant realities a Ground contractor discovers is that there is not one single term or condition in that unilaterally drafted and implemented contract is considered by FXG to be binding upon itself. They freely admit it. If an opportunity comes along to improve it's already impressive profit margins they will implement it regardless of whether or not it is permissible under the terms of the contract. The change being made with Smartpost is just one of what have been many over the years and will result in the creation of a 2 tiered pay scale with the second one being much lower. Right now it's optional but if past history is any indication hauling Smartpost will someday become a mandatory contractual requirement with no negotiation regarding pay rate. They didn't do this with the contractor's margin in mind. They did it purely with their own in mind. As a result there a 2 things a contractor must be able to do. First, they have to greet little surprises such as these with the highest level of doubt and suspicion and secondly leaving themselves an out by keeping borrowed money to a minimum and limiting their exposure to risk and to variable costs to only that which they cannot avoid.And that my friend is why at Ground you keep you eyes wide open all the time and be prepared for every possibility because when not if they arrive the one thing you can be assured of. The interests of the contractors are always secondary to the interests of the company.

This is just a question, I'm a contractor like everyone else here. If I am working a housing delevopement and with smartpost I get 5 more stops on those streets isn't that a good thing. If it is only a quarter less per stop but it adds 5 stops on the same street,I'm making money. I know Fedex is making money and shouldn't pay us less but if I'm making money off the stops then I'll sign it

 

[It will be fine]

This is just a question, I'm a contractor like everyone else here. If I am working a housing delevopement and with smartpost I get 5 more stops on those streets isn't that a good thing. If it is only a quarter less per stop but it adds 5 stops on the same street,I'm making money. I know Fedex is making money and shouldn't pay us less but if I'm making money off the stops then I'll sign it

It's a question of volume. If you're getting 2-3 stops/route, then sure it's just a little extra revenue. If it's 100 stops in a town and you need to hire another driver, you're screwed because you'll be doing it with a 30% reduction of revenue.

 

[sadmanhere]

This is just a question, I'm a contractor like everyone else here. If I am working a housing delevopement and with smartpost I get 5 more stops on those streets isn't that a good thing. If it is only a quarter less per stop but it adds 5 stops on the same street,I'm making money. I know Fedex is making money and shouldn't pay us less but if I'm making money off the stops then I'll sign it

a quarter less is not that bad. but everyone has a different contract . with my contract its .60 cents less. I arranged my contract to have the money go into stops..

 

[instiches]

It's a question of volume. If you're getting 2-3 stops/route, then sure it's just a little extra revenue. If it's 100 stops in a town and you need to hire another driver, you're screwed because you'll be doing it with a 30% reduction of revenue.

Exactly. If there were more fixed costs in this business instead of predominantly variable, it would make better sense to take incremental volume at lower rates.

 

[bbsam]

a quarter less is not that bad. but everyone has a different contract . with my contract its .60 cents less. I arranged my contract to have the money go into stops..

Under ISP it's a lot more than a quarter per stop. My "offer" was less than half of my "negotiated" amount.

 

[sadmanhere]

Under ISP it's a lot more than a quarter per stop. My "offer" was less than half of my "negotiated" amount.

are you ground? from what I hear they just offered it to hd... everyone here offer stop+package was around 1.80 my stop+package is around 2.50 I also get .10 fuel per stop...so depending if they give you the fuel per stop...its .70 cents less per stop for me.. over her in nyc everyones stop pay is in the rang of 2.15 to 2.80 from what I see..on the hd side

 

[bbsam]

are you ground? from what I hear they just offered it to hd... everyone here offer stop+package was around 1.80 my stop+package is around 2.50 I also get .10 fuel per stop...so depending if they give you the fuel per stop...its .70 cents less per stop for me.. over her in nyc everyones stop pay is in the rang of 2.15 to 2.80 from what I see..on the hd side

I am Ground.

 

[bacha29]

It's a question of volume. If you're getting 2-3 stops/route, then sure it's just a little extra revenue. If it's 100 stops in a town and you need to hire another driver, you're screwed because you'll be doing it with a 30% reduction of revenue.

Right on. You end up with too much for one guy but not enough for the second guy to do then it can't help but lose money. Likewise out in the rural areas if they are basing everything or GPS coordinates, forget about it because GPS out in my little piece of heaven proved itself conclusively to be so incredibly inaccurate guys simply tossed them into the back of the truck used paper maps or simply taught themselves which roads were which and where they went. Again, it still comes to to the principle of changing contract terms in whatever fashion that better served them and that's what's wrong the the whole program.

 

[sadmanhere]

okay ground gets more per stop.....they said just hd got the offer......they probably figure you don't do as much volume and you have free time between pickups..so making 1.80 a stop is better than driver just napping.
if hd is turning this down...I can imagine what ground thinks of this

 

[Brownslave688]

Now the rationale is that the smart post coming in will be within 800 feet of packages already inbound. Some may be clamoring to get that relatively easy money. I think that's foolish.

This is crazy to me. FedEx is already making a fortune off of the ISP model. Now they want to milk it for even more.

 

[bbsam]

This is crazy to me. FedEx is already making a fortune off of the ISP model. Now they want to milk it for even more.

Just as crazy as UPS cutting routes? Engineering is all about maximizing profits.

 

[sadmanhere]

well last year fdx stock was 147 its at 210 now I'm guessing its going to keep going up