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FedEx Freight | If we MERGE

Chevy there is SOMETIMES a fine line between fact and fiction in here... There is also a fine line between flaming and stating what you "THINK".. You have to be the judge of that yourself.. Those lines obviously differ for every person in here as to where they are drawn or not drawn in the sand... I just recently started posting after reading them for months and months.. It isnt a bad forum really compared to what is out there...
 
Chigger said:
Oh yea, I agree, but there is no way Fred can buy the fuel,pay 57 cpm and bennies and the insurance,tags and everything it takes to run just the truck, cheaper than the O/O can pull it. It is a very lucrative set up he has at ground. Now if the lawsuits and everything else starts to turn on him, yea you bettcha he will change it, but I don't think its even close to that yet.
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I was an O/O for 13 years Chigger and you might be surprised at how much cheaper a big company outfit can pull down the road verses a O/O. Companies like Fedex get big group/bulk discounts on insurance and fuel, the man that has 4 or 5 trucks leased on don't get those discounts so he makes up for it with lower driver pay/benefits. So overall operating cost of the co. truck vs. the contract truck is not as far apart as you might think.
 
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Kings disciple said:
I was an O/O for 13 years Chigger and you might be surprised at how much cheaper a big company outfit can pull down the road verses a O/O. Companies like Fedex get big group/bulk discounts on insurance and fuel, the man that has 4 or 5 trucks leased on don't get those discounts so he makes up for it with lower driver pay/benefits. So overall operating cost of the co. truck vs. the contract truck is not as far apart as you might think.
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I think you are preaching to the choir, Chigger knows what he is talking about. You aren't the only former o/o out here and I believe he knows more about Ground than you do. Hopefully all this will pass over and we'll all laugh about it later.
 
birddog said:
I think you are preaching to the choir, Chigger knows what he is talking about. You aren't the only former o/o out here and I believe he knows more about Ground than you do. Hopefully all this will pass over and we'll all laugh about it later.
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Hey don't get sideways with me over it. I never said I was the only former O/O out here, are you? But I can't help to wonder how you think you know how much I do or don't know about ground or anything else when you don't even know me at all? But no matter. This one thing I do know, I've seen many, many markets built on the backs of contractors and then when it's established and the risk is lower the contractors get kicked to the curb and are replaced by company drivers. It's just a fact of the biz. I'm not saying this will for sure happen to ground, just sayin it would'nt surprise me if it did happened in the future.

Like you said at the end there, I agree and I believe it will pass and wind up being no big deal.
 
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I'm hoping we are all up in arms about nothing and all that is going to be announced is the quarterly earnings statement. Maybe we will all sleep better and all will be good in Fed Ex land after Thursday. At least I hope so. Everyone hang in there and good luck to each of you.:icon_dance:
 
Kings disciple said:
I was an O/O for 13 years Chigger and you might be surprised at how much cheaper a big company outfit can pull down the road verses a O/O. Companies like Fedex get big group/bulk discounts on insurance and fuel, the man that has 4 or 5 trucks leased on don't get those discounts so he makes up for it with lower driver pay/benefits. So overall operating cost of the co. truck vs. the contract truck is not as far apart as you might think.
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Not to mention we already have the trucks sitting there with plates, insurance etc etc. Already got the drivers with bennies, uniforms, shoes, belts etc etc sitting by the phone, might as well use them...lol. I don't know anything about Ground so, no comment there.
 
Kings disciple said:
I was an O/O for 13 years Chigger and you might be surprised at how much cheaper a big company outfit can pull down the road verses a O/O. Companies like Fedex get big group/bulk discounts on insurance and fuel, the man that has 4 or 5 trucks leased on don't get those discounts so he makes up for it with lower driver pay/benefits. So overall operating cost of the co. truck vs. the contract truck is not as far apart as you might think.
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It use to be that the O/O at ground also got these discounts, now however it has been 6 years since I have been there so things might have changed. But I do know that the profit margin used to be a huge difference between the co. And it was because of the O/O having all the expenses other than the trailers. You have to look at how ground is set up as a whole. But as I said before, if the expense starts out weighing the O/O he will make the change I have no doubt. They have lost some of the control that they once had over the O/O since I've been there, but I still think it would not be worth messing with yet.
 
Chigger said:
It use to be that the O/O at ground also got these discounts, now however it has been 6 years since I have been there so things might have changed. But I do know that the profit margin used to be a huge difference between the co. And it was because of the O/O having all the expenses other than the trailers. You have to look at how ground is set up as a whole. But as I said before, if the expense starts out weighing the O/O he will make the change I have no doubt. They have lost some of the control that they once had over the O/O since I've been there, but I still think it would not be worth messing with yet.
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Yea your probably right, but like you said before , if they keep these law suits going against Fred he's going to get tired of that pretty quick. I don't understand why they sued the hand that feeds them but I don't know the details either.
 
stonecoldx said:
Yea sharpshooter I agree with you... Those guys at the bottom arent working much.. I typically ask every morning when I come in if they called everyone. It seems though a lot of the guys at the bottom arent intrested in city work... They may not call them for a line haul run but sometimes have they trailers to shuttle back and forth from freight and the rail yard and they tend to stay home and not do that... I dunno how it is at other centers but in memphis thats how it is... But there again I have heard bids canceling as well and then those guys that get their bids canceled go above everyone that hasnt been called yet... Unfortunately this is how the LTL buisness is. There is either not enough drivers or too many... Unless National adobts some sort of call block policy that lets the more senior guys on the extra board turn down shorter runs waiting for a longer ones to choose from I dont see any way to change it.. I have heard rumors that national will be going to some type of call block system in the future ...
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My first tour of duty on CCN's extra board, when I called in and was told there were no linehaul runs to be covered, I asked for anything; dock work, hostler, anything. I even asked about coming in and spotting trailers, breaking sets, hell I went so far as to ask if I could just sweep the yard and empty trash for a few hours. I was turned down every time. The answer I was given was that if they needed me for linehaul that night, I had to be available whenever they called. I really tried, they really didn't need/want me there. Now I am in a motel in Akron, Oh (AKN), covering bids there because of the hiring freeze. Except for the 3.5 hour drive Monday and Saturday, it's almost like having a bid run. I know what I'm doing all week long.
 
steelmiller said:
What does this mean? "absorbed by harrison" All of your post are written as facts. How do you know? Who are your sources? If not true and not verifiable then you are flaming here. Why?
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I am just stating what I have heard from people in lakeland and harrison, with whom i used to work with in mva.
I am just sharing information and thoughts and possible rumors. no different than any other posts on here. but i would bet the farm that freight will absorb national and have no problem taking over the work load.
 
Just heard a supervisor said this am that we are going to have our quarterly meeting on wednesday during preshifts but doubts any earth shattering news.
 
Have heard from a freight driver in Chico that the National relay drivers working out of that yard have been told to be available for a phone call on Thurs. hmmmmmmmmmmmmmmm
 
Richard Cranium said:
Have heard from a freight driver in Chico that the National relay drivers working out of that yard have been told to be available for a phone call on Thurs. hmmmmmmmmmmmmmmm
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It sounds crazy. But, anything is possible i guess. I have heard all the rumors and i have spread some myself. All I know is that Moss, Boyle and others went to national to get it "straightened out" and they failed. The top man at freight won't accept failure. I believe that is why he was brought in and not a Viking or AF or National person was promoted. Whatever is coming (large or small) or nothing I hope we all were upset for nothing and all of us have jobs we can make a living from.
 
Ive been watching this for a couple of days now. Everyone knows the quarterly report comes out on Thursday. Perhaps if a merger is announced to the employees it will be done early on Wednesday prior to the Quarterly results to get wall street interested in promoting the stock. If there is a merger I am betting its not clean that Freight absorbs National or vice versa. I believe they will merge based on city size and lease length and size of terminal. Look at the new equipment rolling in on the National lots. Dont know if new equipment is at freight. They could also offer buy outs to some employees. And pick and choose the better of the supervisors, osd, office clerks and safety people. Nationals dock people are likely at a higher risk of loss than drivers since they still have a lot of larger terms with many full timers. They could also pull one out of their hat, announce a newly formed company, and require that everyone rehire in and then they weed out who they dont want. There are many what ifs to a merger or hostile takeover and rest assured there aint a soul on this forum that will change how they do it.
 
The best guess right now is Wednesday or Thursday for the big announcement. So many people have signed non - disclosure agreements that something big is about to happen. Good luck to all and let's hope that the resulting company looks out for it's employees and great people from all three old companies....... It's a coming!
 
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