The Express employee massacre continues.

[59 Dano]

a way to look at it is: As a leader would you be more effective making money as an empoyee or making money as money as a contractor... And of those 2, what is better for a company? Another words a competant and compensated employee with a tangible career ladder, may be more sustainbly productive(more profitable) than cheap labor with limited career outlook.

Does increasing your labor expense (and that doesn't count all of the other ancillary expenses that go with it) by some ungodly percentage translate to a corresponding bottom line benefit?

You're trying to answer a math question with anything and everything but math. And we know why.

 

[59 Dano]

The lack of competent management condemned that scenario for FedEx.

Who or what condemned that scenario for all the other companies?

 

[Fred's Myth]

Who or what condemned that scenario for all the other companies?

When I hired on with FedEx in ‘97, with a background in management, I was dumbfounded by the complete disregard for controlling delivery expenses. I figured this company had to be making obscene profits. But, no, it was obscene incompetence by management, at a major market station
that was held up as a shining example for the district to emulate.

So I will only comment on FedEx.

 

[bbsam]

The contractor model is going to fail?

If they expect Express service at Ground rates, yes. If Ground is seen only as a low cost method of dumping Express drivers, yes.

Low wage, high turnover will prove a loser compared to UPS’ professional career high wage model. It’s not even close and the evidence is there. Ask any customer who’s done it better over the last year. I’d be shocked if 80% didn’t say UPS without hesitation.

But let me ask you. Who’s done it better? Ground or UPS? How does Ground close that gap? By having Memphis and Pittsburgh point fingers and bitch about ingrates like Spencer Patton?

Consider your answers to the previous questions. Now add in 80% Express. Think about operations and brand. Spencer Patton is gone. Do you believe the problems have been fixed? Or do you believe Patton WAS the problem and one disposed of in short order?

 

[bbsam]

FedEx is aiming at what customers are willing to accept.

How low is that bar?

 

[Guitarman01]

So you can't answer it, either.

There's an answer there in what equates to a reliable work force and service while still generating more revenue than your competitor.

 

[Guitarman01]

How about this one?

GM terminates hundreds of contract workers as it tries to shave $2 billion from its budget​

GM terminates hundreds of contract workers as it tries to shave $2 billion from its budget

General Motors confirms it cut several hundred contract jobs over the weekend as the company continues to trim costs.

www.yahoo.com

Business expert Erik Gordon of the University of Michigan's Ross School of Business said terminating contract employees is something many corporations do to save money.

"Contract workers are in an in-between land where they are not employees of the company, don't get company benefits, and can't count on long-term work," said Gordon. "When contractors are let go, companies don't think of it in terms of forcing them. They think of it as just not renewing work that always was temporary. It's a strained but common interpretation of 'forced cuts' or 'job loss. '"

Just to play devils advocate, if there was a remote scenario where the contracts were ended, that would remain alot more secretive than anything going on with Express. It would almost be like a slight of hand done intentionally to mask a true goal.
I mean probably not, but what would that really look like before it happened?

 

[bacha29]

How low is that bar?

A bar so low that you have to bring in a backhoe and dig down to find it.
What amazes me is the crudeness of the outline of the so called "restructuring" in one of the most logistics heavy industries in the entire world....And then to think that somehow everything will miraculously fall into place on it's own.

 

[El Morado Diablo]

When I hired on with FedEx in ‘97, with a background in management, I was dumbfounded by the complete disregard for controlling delivery expenses. I figured this company had to be making obscene profits. But, no, it was obscene incompetence by management, at a major market station
that was held up as a shining example for the district to emulate.

So I will only comment on FedEx.

Back in the days when they used to post our district's monthly performance by station I asked our managers "Why do they keep promoting managers from the largest stations to District Mgr and Sr Mgr if the performance of those stations is always at the bottom?"

They never could give a good reason why. One of the problems with this company that I noticed early on was that it would run better if they gave local station management more control in regards to running their station. Make them follow policy and current directives from upper management and hold them accountable for their performance. Nope, they've always preferred the one-size fits all style that doesn't work well at all.

 

[MAKAVELI]

Ah, ok.

So why isn't every employer spending out the rear end on wages and compensation if there's such a strong correlation between that and bottom line profits?

Why isn't every employer using a contractor model?

 

[Empty Pockets]

FedEx Freight to close and consolidate 29 locations, begin another round of furloughs​

FedEx Freight to close and consolidate 29 locations, begin another round of furloughs

The 29 freight locations closing.

 

[Aquaman]

Getting rid of unions was the biggest misstep this country has taken in a long time. There’s a reason why companies don’t want them

It’s a highly debated topic. But they absolutely protect the workers. And in FedEx’s case, a union would protect the company from itself and its horrible Wall Street schemes.

 

[Aquaman]

FedEx is aiming at what customers are willing to accept.

Residential customers will accept MUCH MUCH less than business customers. A smart company would make the service great across the board. Not aim for good enough. That’s how a company who sells only service goes out of business. And the only people on planet earth that think FedEx Ground delivers great service are the people responsible for chopping up Express.

 

[Gone fishin]

It’s a highly debated topic. But they absolutely protect the workers. And in FedEx’s case, a union would protect the company from itself and its horrible Wall Street schemes.

CEO ‘s make 400 percent more than the workers , that ends the debate

 

[HedleyLamarr]

FedEx is aiming at what customers are willing to accept.

So Dano, are you OK with your kids aiming for C's in school instead of A's? I mean why not? A C is just good enough to pass.

 

[It will be fine]

View attachment 427535The 29 freight locations closing.

Do these count towards the 100 buildings they plan to close this year? Or is that 100 only Express and Ground stations?

 

[Cactus]

FedEx is aiming at what customers are willing to accept.

Did they actually ask the customers (fat chance) or are they just assuming?

 

[MAKAVELI]

Did they actually ask the customers (fat chance) or are they just assuming?

The new FedEx slogan. # How low will you go?

 

[bacha29]

Fat Freddy and Raj always got everything they're own way. All the time....everywhere. And this time around it's not going to be any different.
The exact number of productive and loyal employees tossed back out into the economy and the number of contractors financially ruined is not yet fully known but one should expect that the numbers will be staggering.

I think it is safe to say that we can chalk up another industry where honorable, valuable and fairly paid employment can no longer be found. All that will remain is UPS. High standards, strict discipline almost militarized work environment but pays very well for those willing to abide by those standards.

Oh wait!. Raj says that he has "strict contracting standards". That's nice Raj.....But in exchange for what?

 

[Aquaman]

Fat Freddy and Raj always got everything they're own way. All the time....everywhere. And this time around it's not going to be any different.
The exact number of productive and loyal employees tossed back out into the economy and the number of contractors financially ruined is not yet fully known but one should expect that the numbers will be staggering.

I think it is safe to say that we can chalk up another industry where honorable, valuable and fairly paid employment can no longer be found. All that will remain is UPS. High standards, strict discipline almost militarized work environment but pays very well for those willing to abide by those standards.

Oh wait!. Raj says that he has "strict contracting standards". That's nice Raj.....But in exchange for what?

I personally think we’re all going to be shocked by how many express drivers take ground jobs. Majority of them aren’t qualified to do anything else.