They will never be allowed to get large enough to where they have real power within the opco. Fat Raj will always remain the dominant power . At least to the point where he will always get along just fine without any single contractor regardless of their scale of operation.
Yep but they can afford a $5 billion stock (as of December 2021) purchase buyback????????? This does nothing the employee… unless you own shares and at $200+ per share what average Joe can afford very many except the elite. Green greed greed… really disgustingAverage Sales Price of Houses Sold for the United States
Graph and download economic data for Average Sales Price of Houses Sold for the United States (ASPUS) from Q1 1963 to Q1 2024 about sales, housing, and USA.fred.stlouisfed.org
This is one of the reasons why. You get what you pay for. The pay at FedEx simply isn't keeping up enough to draw the talent they want.
Put yourself in the shoes of some 23 year old fresh out of the service or college and look at the average price of houses sold in the U.S. (regardless of market; here's a market specific link for those who'd attempt to nit pick the argument Q1 2022, Quarterly New One-Family Home Sales by Price and Financing: Median and Average Sales Price of Houses Sold by Region | FRED | St. Louis Fed). That ~$22 to $25 an hour with minimal step increases (given the recent history of non existent increases) isn't going to cut it.
Even the best planning in the world can't save the company if the company isn't willing to pay competitive wages.
Although I've not been with the company long enough to have seen very much, I've seen enough that I don't have confidence in it to buy at the $200+ level.
It appears FedEx seems to think a revolving door of low paid workers is the most profitable business plan moving forward. They're not interested in competitive wages or benefits. I feel this will only get worse.Average Sales Price of Houses Sold for the United States
Graph and download economic data for Average Sales Price of Houses Sold for the United States (ASPUS) from Q1 1963 to Q1 2024 about sales, housing, and USA.fred.stlouisfed.org
This is one of the reasons why. You get what you pay for. The pay at FedEx simply isn't keeping up enough to draw the talent they want.
Put yourself in the shoes of some 23 year old fresh out of the service or college and look at the average price of houses sold in the U.S. (regardless of market; here's a market specific link for those who'd attempt to nit pick the argument Q1 2022, Quarterly New One-Family Home Sales by Price and Financing: Median and Average Sales Price of Houses Sold by Region | FRED | St. Louis Fed). That ~$22 to $25 an hour with minimal step increases (given the recent history of non existent increases) isn't going to cut it.
Even the best planning in the world can't save the company if the company isn't willing to pay competitive wages.
If you don't understand the correlation between housing prices and average wages then it's clear you're not a college graduate but you *are* an excellent example of what talent the quoted wages will draw. I don't recall if you served or not.
And the performance of the stock indicates the market *doesn't* see it as profitable. Again, a simple comparison between the two companies, UPS and FedEx, stock price is telling; the wages are also as dissimilar as the stock returns.
The issue that I see currently is contractors have to have a fairly large scale to support all the additional admin work they’ve been piling on us the last few years. The only way to get that scale is operating in multiple terminals. So they get huge contractors that have 20ish trucks in every terminal around a city. When those guys struggle or fail it causes a big problem. The smaller contractors and contingency teams can only cover so much.
Reaffirms what I've been saying all along....It's an impossible situation. They won't cede enough power and autonomy to big contractors to allow them to operate freely enough to meet all of the ever increasing demands, dictates and mandates. At the same time however after spending years forcing out the small contractors they now expect the few who remain to step in and cover the very areas that drove the big contractor into insolvency. The entire sad, sorry predicament falls in somewhere between Catch 22 and Alanis Morissette Syndrome (Isn't it Ironic?)
This is because FedEx management consists of UPS cast-offs and greenhorn managers who are incapable of honestly dealing with their labor pool. Try researching who sits on the BoD, and how much stock they hold. That will inform you as to where their loyalties lie.
Then they're cutting their nose off to spite their face because, for the third time, the stock performance flat out sucks. Unless I'm misreading and you're implying that the board doesn't hold much stock (a la Twitter), then in that case the piss poor decisions still don't make sense because where will the members land if FedEx goes belly up?
Dude you said to put one's self in the shoes of a 23 year old college grad and then tried to tie it in to housing prices. But carry on, bacha needs some company.
And I also made it clear that you cannot put yourself in a college grad's shoes (since your lack of basic logic is evident). If you're attempting to argue that housing prices and wages are not tied together then you're even more willfully dense than I gave you credit for.
post that seems to be typical behavior of yours.
I bought my first house at 23
Those days are long gone. Most people in their mid 20’s are still living at home. The age at which young people are moving out, getting married and having children is getting older and older.
It’s a mess of a company. They don’t really have the staffing to try much that will work at this point. They’ve seemed to surrender to the Amazon model of no uniforms and untrained workers. They’re not going to compete with UPS because they figure UPS will follow suit eventually or suffer. The shipping/delivery service has become a speed & consistency game. Nothing else matters. Customers don’t care about how much tracking information you give them. They don’t care about expensive early commit times. They don’t care what the driver or truck look like…. They care about that package on their porch. If you can consistently do that, the level of service doesn’t matter. Amazon is proving that every day. They seem to be doing fine with untrained workers in sweat pants with an Amazon vest running the package to your door with the truck still running with doors open.
Exactly! They have no plans to compete with UPS in terms of pay and benefits. Clearly they like the Amazon model and will continue to move that direction. Bank on it!
