The 20% illusion

Discussion in 'FedEx Discussions' started by whatnthe, Jan 22, 2013.

  1. whatnthe

    whatnthe New Member

    I love, by love, I mean despise the way FedEx spins the 20% margin that Ground appears to make for them. For me it seems much clearer that we are spending 80% to pay cartage agents to go where we already go. I'm going to reach for a number that Ricochet posted once that it would cost Fedex around 300 million to top everyone out. Instead, mgmt deems it better to expense 80% of Ground gross revenue (6B$). I wish I
  2. bbsam

    bbsam Moderator Staff Member

  3. Route 66

    Route 66 Bent Member

    I think he just fell off that fiscal cliff I've been hearing so much about
  4. vantexan

    vantexan Well-Known Member

    Let's say to top everyone out who isn't already topped out it would cost an average of $10,000 per employee. That's 100 employees per million dollars. That would top out 30,000 employees with $300,000,000. Are there only 30,000 that aren't topped out? Probably at least 150,000. Let's say it's 150,000. That's 1.5 billion dollars. That's an annual expense. Profit last year was what, 2.1 Billion? 2.2? And that doesn't include all the topped out people who'd like a raise. If they would make it 10 years to top out, topped out employees would retire as others are hired. It would cost them more, but certainly not most of their annual profit. Think they'll go for it? They act all magnanimous when they spend $30 million on us. Don't bet on it.

    P.S. Ricochet said a lot of things and they haven't come to pass.
  5. Mr. 7

    Mr. 7 The monkey on the left.

  6. Cactus

    Cactus Just telling it like it is

    I suspect foul play.
  7. MrFedEx

    MrFedEx Engorged Member

    I realize you and R1a didn't see eye to eye, but what he said is coming to pass. Did you notice the post several days ago about Ground being set-up in their scanners to deliver XS and E2? I know you're hoping for some sort of "half-time" before all of the Ground switchover takes place. I think you've got a few more months.

    There is no way Fred is going to deviate from the forever to top-out pay plan. It's just too profitable for him. Remember, his incentive now is to NOT try and retain employees, but to get them to leave voluntarily. That way he doesn't have to pay unemployment or have a buyout. As long as the RLA is with us, nothing of substance will ever change to our benefit at this company.

    He takes because he can, and he will because he is a bastard.
  8. vantexan

    vantexan Well-Known Member

    I'm not arguing with you, they have no intention of topping us out in any semblance of a reasonable amount of time. Just pointing out that topping everyone out immediately who isn't already topped out will cost much more than $300 Million. There's no way the company will do that, but it will serve no good purpose to mislead people into believing the money's there to do it if they weren't so greedy, etc. The company has done plenty to take advantage of us, but let's stick to facts.

    If I agreed with R1a on something, he was civil. If I disagreed with him or just gave an alternative view, he turned into a huge jerk who made it personal. His ego won't allow a free exchange of ideas, it's his way or the highway. If he was accurate in his predictions, why didn't he stick around to defend them? This is classic trolling, getting off on getting people all upset and worried. It seemed nothing would have made him happier than knowing he influenced people to quit FedEx, convincing them it was in their best interest to do so before getting the axe that waited just around the corner. I'll put my experience dealing with management up against anyone's, but to hear him telling it I'm just a naive little sheeple who so wanted to believe FedEx is just and good. I have had to deal with way too many control freaks in management, not about to let an outsider control freak try to run me too.
    Last edited: Jan 24, 2013
  9. SmithBarney

    SmithBarney Well-Known Member

    I love the fact that our W2s this year list what fedex said it paid toward our health plan... over $15,000 they say they pay... hrmm I think not. I'll Take that 15k + 5 I put in, and get my own health care for a lot less.
  10. MrFedEx

    MrFedEx Engorged Member

    R1a was no troll. He was genuinely interested in getting FedEx couriers awake and aware that their only way to fight Smith was to organize. I think he just decided to move on. He and I correpsonded regularly outside BC by email, but I haven't heard from him since August. I don't agree with the way he dealt with you at times, but he was just as firmly rooted in his philosophy as you are yours.
  11. bbsam

    bbsam Moderator Staff Member

    It does speak volumes (though I don't know what it says) that he simply vanished when his predictions proved inaccurate.
  12. Cactus

    Cactus Just telling it like it is

    I'll agree with that. And yes he did act like a know it all jerk if your opinion differed from his.
  13. Mr. 7

    Mr. 7 The monkey on the left.

    Please link that post MFE.
  14. vantexan

    vantexan Well-Known Member

    I did read that. What does bbsam say about that? Or is he not free to verify it?
  15. bbsam

    bbsam Moderator Staff Member

    I can confirm that they are moving to a barcode very similar to Express'. I didn't comment, because I thought that was fairly old news being refreshed. Embedded in the barcodes are some service levels like "adult signature", but nothing out of the ordinary. Does seem like they are syncing up the systems though.
  16. STFXG

    STFXG Well-Known Member

    Do You Scan Our Barcodes? Read Info on Updating Your System for Improved Service.


    nothing new... Been in the works for a while.
  17. MrFedEx

    MrFedEx Engorged Member

    Direct quote: "The change makes it easier to implement new and enhanced services down the road". That's code for switching over in my book, and likely means an all overnight Express division and an everything else Ground division. There have been rumors about P1 commitments being moved-up too, which is amazing since they cannot even make 1030 service in many cases.

    This is all so obvious, logical (from the FedEx management perspective), and inevitable. What is there not to get?
    Last edited: Jan 24, 2013
  18. CJinx

    CJinx Well-Known Member

    The barcode switchover is old news; I remember hearing about it back in July. One interesting note though is that the booklet that came out about it recently mentions that packages that contain alcohol will have their own service code instead of just being adult sign. I'm sure they won't be allowed to be driver released (lol) but it might allow QA to address correct them with the scanner rather than have to do it by hand with the old peel-and-stick labels.
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    We have two different service code levels for signature required. 42 is for signature required while A8 is for adult signature required. Shipments of wine must be sent A8, which requires a signature by an individual 21 or older. Wine shipments, especially residential, are a pain in the butt as they cannot be driver released or indirected.
  20. vantexan

    vantexan Well-Known Member

    Most likely P1 commit times would be moved up in PM areas. As is PM area drivers straight line. Without P2 they'd be getting done earlier but I'm sure FedEx would hold our feet to the flames, making sure some didn't try to stretch their day out.