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FedEx Freight | MKO Closing....

truckingBORED said:
And that's just ugly timing for the severance pay mailing!
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They recently announced we're losing 3 road runs (but losing enough volume where 6 drivers can "follow the freight") but gaining 4 runs for a net gain of 1 road run and we're adding a minimum of 5 road drivers, more if others "follow the freight" for the runs we're losing, as well as adding 10-15 more city drivers in CLT...I'd say the severance pay mailing was just coincidental IMO.
 
Ground does have cameras and limiters already in place, at least here in Canada. However, Ground themselves can't view the footage. Because of the new system where they will only contract with companies, the footage is sent to whoever is designated as the head of the safety department at the contractor's company.

Ground merely outlines to the contractors what they must accept to retain a contract with them. The contracts, for those playing along at home, are non-negotiable. FedEx lays out their terms, and if you don't like the terms you are free to find work elsewhere. The contract also contains a clause that permits FedEx to cancel the contract at any time if the terms are violated, and they reserve the right not to renew the contract upon expiry. This has happened in the past.
 
Canadian Flyer said:
Ground does have cameras and limiters already in place, at least here in Canada. However, Ground themselves can't view the footage. Because of the new system where they will only contract with companies, the footage is sent to whoever is designated as the head of the safety department at the contractor's company.

Ground merely outlines to the contractors what they must accept to retain a contract with them. The contracts, for those playing along at home, are non-negotiable. FedEx lays out their terms, and if you don't like the terms you are free to find work elsewhere. The contract also contains a clause that permits FedEx to cancel the contract at any time if the terms are violated, and they reserve the right not to renew the contract upon expiry. This has happened in the past.
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Why would anyone agree to a one way contract? Kind of defeats the purpose of having a agreeable contract between both parties.
 
Crazy Trucker said:
Why would anyone agree to a one way contract? Kind of defeats the purpose of having a agreeable contract between both parties.
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That's what most real-world contracts look like. As far as they're concerned, if you don't like their terms you are welcome to go find someone who meets your expectations.

That being said, FedEx Ground pays very well on the base rate. They do take some of it back (IRP and insurance, probably camera and elog installation too) but they offer the best per-mile rate I've ever seen. And they know it, too, which is why they make the demands they do. But the base rate and capped fuel is all you get from them.

The biggest reason I work where I do, for a lesser base rate, is because Speedy offers a lot of benefits to offset their lower base rate. For example, I pay a fraction of the cost of diesel at the pump because they have fuel in the yard. I get a quarterly safety bonus and an annual profit sharing bonus. And there's a very reasonable benefits package too. Speedy even encourages their owner/operators and their drivers to participate in company functions and we are granted company discounts.

Different companies offer different contracts. So it's up to the contractors to seek out what they want through the job searching process. There can be some room for negotiation in future contracts, but only if you service the contract the way you are asked to. For example, FedEx Ground expects contracts to be serviced every week without failure. And as far as they're concerned, if you have to rent a truck or own a backup truck to ensure that, then that's what you do. You're an independent business operator and they don't believe in babysitting you.

It's kind of a perspective thing. One person getting percentage pay for their loads might look at what I'm doing and ask why I wasn't making more money by demanding percentage. To me, percentage is a gamble because you don't get paid for empty miles when you're paid from load revenue. Someone like you, driving for a big carrier rather than owning their own rig, might question why I bother with all the paperwork associated with running a business when my job is pretty much the same and, by all appearances, I don't get the same level of benefits. From my point of view, as a self-employed person I have much greater influence on my tax returns, and the saved money goes into other things I need.

I hope that explains it a bit. As an owner/operator, it's actually surprisingly easy to contract shop based on what you're looking for in the job, so the ever-prevalent non-negotiable contracts aren't regarded as a big deal. If you don't like the deal, you find another one.

Because, to me at least, if the contract is both non-negotiable and not what I'm looking for, the company doesn't want my services badly enough. And in the world of today where there already aren't enough drivers, my services are in demand.
 
Canadian Flyer said:
That's what most real-world contracts look like. As far as they're concerned, if you don't like their terms you are welcome to go find someone who meets your expectations.

That being said, FedEx Ground pays very well on the base rate. They do take some of it back (IRP and insurance, probably camera and elog installation too) but they offer the best per-mile rate I've ever seen. And they know it, too, which is why they make the demands they do. But the base rate and capped fuel is all you get from them.

The biggest reason I work where I do, for a lesser base rate, is because Speedy offers a lot of benefits to offset their lower base rate. For example, I pay a fraction of the cost of diesel at the pump because they have fuel in the yard. I get a quarterly safety bonus and an annual profit sharing bonus. And there's a very reasonable benefits package too. Speedy even encourages their owner/operators and their drivers to participate in company functions and we are granted company discounts.

Different companies offer different contracts. So it's up to the contractors to seek out what they want through the job searching process. There can be some room for negotiation in future contracts, but only if you service the contract the way you are asked to. For example, FedEx Ground expects contracts to be serviced every week without failure. And as far as they're concerned, if you have to rent a truck or own a backup truck to ensure that, then that's what you do. You're an independent business operator and they don't believe in babysitting you.

It's kind of a perspective thing. One person getting percentage pay for their loads might look at what I'm doing and ask why I wasn't making more money by demanding percentage. To me, percentage is a gamble because you don't get paid for empty miles when you're paid from load revenue. Someone like you, driving for a big carrier rather than owning their own rig, might question why I bother with all the paperwork associated with running a business when my job is pretty much the same and, by all appearances, I don't get the same level of benefits. From my point of view, as a self-employed person I have much greater influence on my tax returns, and the saved money goes into other things I need.

I hope that explains it a bit. As an owner/operator, it's actually surprisingly easy to contract shop based on what you're looking for in the job, so the ever-prevalent non-negotiable contracts aren't regarded as a big deal. If you don't like the deal, you find another one.

Because, to me at least, if the contract is both non-negotiable and not what I'm looking for, the company doesn't want my services badly enough. And in the world of today where there already aren't enough drivers, my services are in demand.
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Great explanation, CF.

I'm sure I'm not the only one to have considered the owner operator route. For the longest time, under AF, the only drivers I knew that left the Company (by choice) did so with a contract for dedicated services.

For me, the calculation of the cost/value of benefits-insurance, 401k, and especially vacation made me reluctant. The cost to duplicate these items, on top of wages, at the time, seemed to make the break even point a bit high. But, having said that, it's always been a possibility in the back of my mind. Perhaps a viable part time gig in (semi) retirement? Even then, likely hard to justify the fixed cost of ownership, for a truck that only runs 2-3 days a week, or one week a month.
 
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SwampRatt said:
Great explanation, CF.

I'm sure I'm not the only one to have considered the owner operator route. For the longest time, under AF, the only drivers I knew that left the Company (by choice) did so with a contract for dedicated services.

For me, the calculation of the cost/value of benefits-insurance, 401k, and especially vacation made me reluctant. The cost to duplicate these items, on top of wages, at the time, seemed to make the break even point a bit high. But, having said that, it's always been a possibility in the back of my mind. Perhaps a viable part time gig in (semi) retirement? Even then, likely hard to justify the fixed cost of ownership, for a truck that only runs 2-3 days a week, or one week a month.
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You're not wrong about the break even point. And with modern trucks you have to account for the greater costs involved in servicing the electronics and emissions equipment.

The hardest part is finding the contract that will work for you. I have never made a move without first carefully considering what's on the table. Believe it or not, Schneider has a surprisingly good offer. Percentage pay, choose your own loads online, free trailer use, discounts on fuel, tires and repairs, financing for your truck if needed and a free online business course to help you run your business efficiently. No bennies but they make up for it in other ways. Essentially, they give you everything you need to turn a profit. If you can't make money, you're doing something wrong.

That being said, as invested as many of you are in the FedEx 401K and their other benefits, it wouldn't really make sense to start over unless you retired from FedEx first.

I will say that the way Schneider does it is perfect for someone who wants to travel in retirement. I've heard from people who actually do it that way, even bringing the wife along. They say they love it. Get paid to drive somewhere, take a day or two off to see the sights, then hit the road home again.
 
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