What happens when a Ground contractor loses his contracts?

CookiePuss

Active Member
I work out of a small Ground terminal that has 3 contractors. One of them is struggling badly with the increased volume. They are leaving about 100 stops at the terminal every morning and it just keeps adding up daily. He has his drivers coming in Sundays but they are still swamped. The other two contractors already are at their maximum number of routes. What will happen with the routes if/when the contractor loses his contracts?
 

AB831

Well-Known Member
At first glance I thought it said "loses his contacts." I was going to say that I guess he has to wear his glasses instead.
 

It will be fine

Well-Known Member
I work out of a small Ground terminal that has 3 contractors. One of them is struggling badly with the increased volume. They are leaving about 100 stops at the terminal every morning and it just keeps adding up daily. He has his drivers coming in Sundays but they are still swamped. The other two contractors already are at their maximum number of routes. What will happen with the routes if/when the contractor loses his contracts?
I doubt any contracts will get pulled for this. In general their contract goes up for bid. Different companies put in bids and the terminal manager and district manager pick who they think is best.
 

fedx

Extra Large Package
You’re at the mercy of a corporation who think they’re God. Don’t say we never warned you.


And don't forget FedEx will play off this coronavirus as an excuse to not give us a raise this October. They'll be saying "we're almost broke" while telling Wall Street they had a record year. It's become pretty obvious that shipments have increased a lot due to people staying at home. FedEx will say different.
 

CookiePuss

Active Member
I doubt any contracts will get pulled for this. In general their contract goes up for bid. Different companies put in bids and the terminal manager and district manager pick who they think is best.

What happens to the routes in the time between the contracts getting pulled and a new contractor successfully bidding on them?
 

AB831

Well-Known Member
And don't forget FedEx will play off this coronavirus as an excuse to not give us a raise this October. They'll be saying "we're almost broke" while telling Wall Street they had a record year. It's become pretty obvious that shipments have increased a lot due to people staying at home. FedEx will say different.
"oh, well our residential deliveries went up, and we actually LOSE money on those, blah, blah, blah."

"we didn't lay off a SINGLE employee while unemployment was at RECORD highs"

"we're the greatest business in the world".

Yeah, you said it. The usual
 

AB831

Well-Known Member
Nice mess there Fred.

Care to explain that one?
It's Ground, so it's not FedEx's fault. They have the perfect setup. They can absolve themselves of any blame from things that go wrong with the Ground operation, yet they can steal any credit for things that go right.
 

dmac1

Well-Known Member
I work out of a small Ground terminal that has 3 contractors. One of them is struggling badly with the increased volume. They are leaving about 100 stops at the terminal every morning and it just keeps adding up daily. He has his drivers coming in Sundays but they are still swamped. The other two contractors already are at their maximum number of routes. What will happen with the routes if/when the contractor loses his contracts?

They are supposed to warn him and give him a chance to correct. If he doesn't correct, the terminal can decide who they want to contract with. There is no 'bidding' in the sense of the highest or lowest bidder gets the routes. Technically, the contractor should have had people ready and hired a driver he had already gotten approved on standby. It is hard to do that when you only have a couple drivers. Once you get up to a bigger scale, you can have 5 drivers for four routes, and have each work 4 days a week, or some schedule that makes it worth while for a driver to stick around. If he is on good terms with mgmt, nothing will happen to him, if not, they won't give him much time.
 

Cactus

Just telling it like it is
"oh, well our residential deliveries went up, and we actually LOSE money on those, blah, blah, blah."
Well maybe it's time to pull the plug on residentials. Can't please everybody, especially the clueless.

"we didn't lay off a SINGLE employee while unemployment was at RECORD highs"
That's because the job sucks and plenty of people quit.

"we're the greatest business in the world".
As long as the year 1985 sticks around.
 

It will be fine

Well-Known Member
What happens to the routes in the time between the contracts getting pulled and a new contractor successfully bidding on them?
It depends. They negotiate with the new bidders 5-6 months out from when the old contract ends. It’s rare that a contract gets pulled immediately. If they have to do that they’ll normally line up existing contractors to run the stuff until a new contract is finalized. There are a few ways they can do it depending on what they want the final outcome to be.
 

bacha29

Well-Known Member
They are supposed to warn him and give him a chance to correct. If he doesn't correct, the terminal can decide who they want to contract with. There is no 'bidding' in the sense of the highest or lowest bidder gets the routes. Technically, the contractor should have had people ready and hired a driver he had already gotten approved on standby. It is hard to do that when you only have a couple drivers. Once you get up to a bigger scale, you can have 5 drivers for four routes, and have each work 4 days a week, or some schedule that makes it worth while for a driver to stick around. If he is on good terms with mgmt, nothing will happen to him, if not, they won't give him much time.
It comes back to the same inescapable reality when it comes to that so called contractual service agreement.........NOTHING"S BINDING ! It's simply not worth the paper it's written on because there's no governing legal authority or due process in place capable of making X abide by the terms of it's own unilaterally drafted and implement contract.

As a result the question of if and for how long they keep you around is entirely dependent on your performance as a corporate testicular vacuuming device.
 

Code 82 Approved

Titanium Plus+ Level Member with benefits!
2 contractors failed during peak in my building, and two entities set up shop, both from out of state. I think they called it a contingency situation. One rented a slew of trucks, and the other brought in an entire fleet of brand new trucks. As the world turned and time has gone on since the two "contingency" contractors have had a few months of operating experience in my terminal the one with the new trucks seems to be doing ok. The rental fleet contractor left behind about 750 stops today and has to fly in 4 drivers from wherever they domicile to catch up and deal with it and 1-800flowers this weekend.
 

bacha29

Well-Known Member
2 contractors failed during peak in my building, and two entities set up shop, both from out of state. I think they called it a contingency situation. One rented a slew of trucks, and the other brought in an entire fleet of brand new trucks. As the world turned and time has gone on since the two "contingency" contractors have had a few months of operating experience in my terminal the one with the new trucks seems to be doing ok. The rental fleet contractor left behind about 750 stops today and has to fly in 4 drivers from wherever they domicile to catch up and deal with it and 1-800flowers this weekend.
Those contingency contractors are mercenaries who like locusts come in eat up the best chum and move on.
 
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