As with all things relating to Fred’s labor issues, I’m sure he’s thought this one out too. In order for unionization to work (from the employees perspective), Express and Ground would have to do it simultaneously. If just Express were to unionize, Fred has a ready supply of experienced drivers working in the Ground division, that he’d offer incentives to come over to Express. Since Ground is still under the legal umbrella of Independent Contractor, their unionizing would be meaningless, until and unless their classification was changed to employee. This may happen with the incoming administration, but it is going to happen at the pace of our legal system, which measures time in years, not months.
As Mr. FedEx has alluded to, Express is understaffed and route capacity/utilization is higher than it was just a couple of years ago. Part of Fred’s plan is to increase efficiency by implementing the ROADS system, to make Express mirror UPS’s efficiency in getting pieces delivered. The differences between Express and UPS that were so apparent just a few years ago are quickly disappearing. What is not changing along with the changes in Express’ business model, is the compensation offered to its hourly employees. Express is becoming more efficient; however the employees are not sharing in that gain in efficiency. To the contrary, because of the increase in business efficiency, Express hourly employees have to work harder and harder, and have absolutely no chance in getting increased compensation in exchange. Express is in part becoming more efficient in business terms because the total employee compensation package is being eroded, while actual work efficiency is being increased.
Given the mind-set of many Express employees, I don’t believe unionization attempts within Express will be successful. Too many long term employees see unions as the “bogey man”, and fear what they know not of. They’d rather Fred continue to take away their benefits, and make them work harder, than to take a chance on unionizing and fighting back. I hear the mantra of, “at least I still have a job”, so often that it makes me sick. This is the definition of indentured servitude, rather than that of an equal relationship between employer and employee.
FedEx has changed, and the changes are not palatable to me, and many other employees. I believe that Fred wants to do whatever is possible to get the stock price back up to where it was a few years ago, so he can cash out his stake at the old stock price, retire, and exit chairmanship. I and many other employees have also decided that it is time to exit FedEx. This past “peak” was my last with FedEx. I will exit FedEx this year, when the time is right for me. I at least have other options, so I’m not left muttering, “at least I still have a job”. The irony is that the employees that do have this mindset are the very employees that are reluctant to unionize to protect what they have/had. It is the employees that aren’t afraid to leave for other pastures, which have the courage to fight, and the resolve to make a decision that is right for them. I have the courage to fight; it is just that I realize it would be a lost cause, so therefore it would be a meaningless fight. As to the employees that would be left, I hope they can gain solace by telling themselves every time they are screwed that at least they still have a job each time. It may make the screwing feel a little better for them.
