MrFedEx
Engorged Member
I really think UPS needs to wake-up and challenge FedEx Ground, because they are steadily eroding your market share. Short-term, that doesn't mean a great deal, but long-term, UPS cannot compete with the low-cost structure of FedEx. For those of you who aren't aware of what a FedEx Ground driver makes, let me inform you. Try $500-$750 per week salary, or $11-$14 per hour, with zero benefits. Factor-in that FedEx passes-off most vehicle expenses to the contractor, and all the corporation really has a huge stake in is it's facilities, which they are constructing at a rapid pace.
I've posted about this before, but was largely ignored. Now, the transportation media is starting to take notice of the UPS loss in market share, as is the general media. Simply put, UPS will never be able to compete with Ground on price due to the built-advantages of the Ground business model, which provides Fred S a huge pool of subsidized cheap labor. Let me explain how this works. First, with zero benefits, the health care costs of a Ground driver fall to the taxpayer, who will pay the Emergency Room bill when the Ground employee or his family get sick. Second, Ground pay is low enough where drivers actually qualify for public assistance. Guess who pays for that? You do. Fred S has successfully passed these costs onto the taxpayer, just like WalMart does.
UPS has stood-by and just watched Ground take away their business. Is Ground as good as UPS Brown? No, but it's getting there, and the cost advantages of Ground are huge. There will soon be a price point at which many shippers will shift to Ground, even if the service isn't quite as good. Yes, the Ground driver is generally unprofessional in conduct and appearance, and he's the one who takes two dock spots instead of one and then blocks you in the alley for 30 minutes later on for no good reason. Guess what? That's good enough for FedEx, and probably for a lot of customers as well.
In fact, Ground is so profitable that Fred S is doing everything he can to gut his Express division and divert their business over to Ground. Fred makes a much higher percentage of profit off a Ground package in comparison to the Express overnight product. He's slashing benefits, raising premium costs on remaining benefits, and cutting hours over at Express because Ground is his cash cow.
Few of you care if FedEx drivers get a raw deal or not because you have an excellent deal...for now. That's why you and your company need to take action NOW against FedEx Ground. Mr. Smith is extremely well-connected politically, and he's been able to squash organization efforts at FedEx Ground hubs, where workers are employees, and not "non-employee" drivers who work for a contractor.
FedEx Ground is a scam, but until someone with enough money and clout (read UPS) takes action, Fred S is going to keep whittling-away at your company and your job security...and he has a big knife.
You can write me off as a disgruntled Express employee if you'd like, but that would be unwise, because what I have just written is the absolute truth, and I strongly suggest you start taking a closer look at the FedEx Ground threat to your career. Withing the next 5-6 years, Ground has the potential to kill your union and force UPS into a muti-tiered payscale, reduced benefits...or both.
Good luck.
I've posted about this before, but was largely ignored. Now, the transportation media is starting to take notice of the UPS loss in market share, as is the general media. Simply put, UPS will never be able to compete with Ground on price due to the built-advantages of the Ground business model, which provides Fred S a huge pool of subsidized cheap labor. Let me explain how this works. First, with zero benefits, the health care costs of a Ground driver fall to the taxpayer, who will pay the Emergency Room bill when the Ground employee or his family get sick. Second, Ground pay is low enough where drivers actually qualify for public assistance. Guess who pays for that? You do. Fred S has successfully passed these costs onto the taxpayer, just like WalMart does.
UPS has stood-by and just watched Ground take away their business. Is Ground as good as UPS Brown? No, but it's getting there, and the cost advantages of Ground are huge. There will soon be a price point at which many shippers will shift to Ground, even if the service isn't quite as good. Yes, the Ground driver is generally unprofessional in conduct and appearance, and he's the one who takes two dock spots instead of one and then blocks you in the alley for 30 minutes later on for no good reason. Guess what? That's good enough for FedEx, and probably for a lot of customers as well.
In fact, Ground is so profitable that Fred S is doing everything he can to gut his Express division and divert their business over to Ground. Fred makes a much higher percentage of profit off a Ground package in comparison to the Express overnight product. He's slashing benefits, raising premium costs on remaining benefits, and cutting hours over at Express because Ground is his cash cow.
Few of you care if FedEx drivers get a raw deal or not because you have an excellent deal...for now. That's why you and your company need to take action NOW against FedEx Ground. Mr. Smith is extremely well-connected politically, and he's been able to squash organization efforts at FedEx Ground hubs, where workers are employees, and not "non-employee" drivers who work for a contractor.
FedEx Ground is a scam, but until someone with enough money and clout (read UPS) takes action, Fred S is going to keep whittling-away at your company and your job security...and he has a big knife.
You can write me off as a disgruntled Express employee if you'd like, but that would be unwise, because what I have just written is the absolute truth, and I strongly suggest you start taking a closer look at the FedEx Ground threat to your career. Withing the next 5-6 years, Ground has the potential to kill your union and force UPS into a muti-tiered payscale, reduced benefits...or both.
Good luck.
