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FedEx Freight | Contractor modo question.

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Ratchet

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Gonna be a long read. With the merging of opcos and uncertainty of contractor vs company driver. Am wondering what people’s thoughts are like which modo is cheaper ? I myself am one whom sees company driver being phased out. Obviously hope I’m wrong. But I could just see them selling routes like ground does. On equipment side FedEx wouldn’t have to buy tractors, maintenance, registrations, permits, fuel, etc. Benefits vacations PTO . They wouldn’t have to do hiring training or staffing or get drivers to to cover runs. On phone calling drivers cover runs. Jus sell routes to contractors and be done with it. Personally I think the contractor modo give’s company a really bad name. How many times do you see a package driver tearing up packages telling off customers etc etc. don’t mention the backwards hats and slides. And out on big road I know freight got some dumbass drivers but not nothing to the contractor. Company man just seems to behave him or herself per say bettter because have more to lose. Wages, benefits, etc. Am seeing Amazons big truck fleet grow more and more and they are all contractors. Not sure how that process works meaning they’ve got big lot of brand new sleeper Peterbilts branded with Amazon but yet have contractor names on trucks. So are contractors leasing trucks from amazon instead of being there own trucks..? 🤷🏻‍♂️Got so many questions. Jus wondering others thoughts.
 
Jus running each other’s equipment and one or the other getting cancelled and running one or another’s freight. How are we supposed to work along side one another with such different gap between pay benefits etc. I know helping cover ground runs during holidays the drivers at least from my experience are huge pricks. But like I said IMO I think it all comes down to which is cheaper.
 
This has always been a worry and question from linehaul drivers for years. The concern of this has faded until Raj became CEO and really started shaking things up so i totally understand the concern. I could definitely see them experimenting with this for AM linehaul but not for PM hun runs. They say it will not happen because they have more control over us the company driver, and because contractors are not reliable but there is a 3 hour delay window built into every AM meet and turn so i could see them doing that but who knows. Don’t sweat it or let it drive you nuts because truth is we have no control. Just come in, do your run as safe as possible and go home. Day to day my friend.
 
SIKOFITALL said:
This has always been a worry and question from linehaul drivers for years. The concern of this has faded until Raj became CEO and really started shaking things up so i totally understand the concern. I could definitely see them experimenting with this for AM linehaul but not for PM hun runs. They say it will not happen because they have more control over us the company driver, and because contractors are not reliable but there is a 3 hour delay window built into every AM meet and turn so i could see them doing that but who knows. Don’t sweat it or let it drive you nuts because truth is we have no control. Just come in, do your run as safe as possible and go home. Day to day my friend.
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Wish I could say wasn’t sweating it. One more guy retires and I be on run I’ve been waiting to get for 11 years. He be retiring in june 24. Definitely agree have more control over company man. And imo I think lot ways that’s what need. Especially on package side. So I’d love see everyone go company. But not any type of dovetail. And 2 contractors I see all time pm line haul drive like absolute morons. Which being compared to one of them drivers drive me nuts. Lol. But again seeing Amazon go contractor route leads me more to think that’s the less hassle cost effective route
 
Ratchet said:
Wish I could say wasn’t sweating it. One more guy retires and I be on run I’ve been waiting to get for 11 years. He be retiring in june 24. Definitely agree have more control over company man. And imo I think lot ways that’s what need. Especially on package side. So I’d love see everyone go company. But not any type of dovetail. And 2 contractors I see all time pm line haul drive like absolute morons. Which being compared to one of them drivers drive me nuts. Lol. But again seeing Amazon go contractor route leads me more to think that’s the less hassle cost effective route
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FedEx only cares about the share holders and that’s it, bottom line! Remember that. If it comes down to the bottom line vs public image what do honesty think they’ll pick?

I hope you get your run you’ve been waiting for
 
SIKOFITALL said:
FedEx only cares about the share holders and that’s it, bottom line! Remember that. If it comes down to the bottom line vs public image what do honesty think they’ll pick?

I hope you get your run you’ve been waiting for
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SIKOFITALL said:
FedEx only cares about the share holders and that’s it, bottom line! Remember that. If it comes down to the bottom line vs public image what do honesty think they’ll pick?

I hope you get your run you’ve been waiting for
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Yup def agree bout shareholders.
 
Just switched to city for this reason. They will need company drivers for the short pm runs because they work the dock and cover vias. They are already doing this with Chicago freight going to Minnesota. Look up R&R they bring freight back and forth from Chicago daily in a day cab. They even have PT vans for Dayton, Ohio. That USED to be a road run.
 
suzy1052 said:
I'm not gonna worry about it until I see ground drivers at the dmv gettin hazmat and tanker endorsements.
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That's the part that gets ignored. Hazmat certification is expensive and a PITA to comply with the "within 90 days every 3 years" training.

There's also the steep competition in LTL. Why would I work for a freight contractor when I can go to ABF, OD, Saia, Pitt etc. They'd never be able to keep a butt in the seat.

Contractors will have a huge problem with being cancelled. Especially after paying for all of that hazmat certification and training.
How would it work during the March -November boom and the December to February bust?

Lastly, the threat of organizing. Freight isn't express or ground. If there's nothing left to lose, start organizing building by building.

There are too many obstacles to make it worth it. They'll continue to use PT as long as it's cheap and keep you on standby until they need you.
 
Agree hazmat is expensive and could cause reliability issues. I watch the local contractors on FB. They always listing that there hiring. I occasionally go thru there qualifications to see if hazmat is mentioned. So far it’s not required hopefully stays that way.
 
Diggger86 said:
Just switched to city for this reason. They will need company drivers for the short pm runs because they work the dock and cover vias. They are already doing this with Chicago freight going to Minnesota. Look up R&R they bring freight back and forth from Chicago daily in a day cab. They even have PT vans for Dayton, Ohio. That USED to be a road run.
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Exactly why I’m concerned. As previously mentioned I’m almost to getting the run always wanted. Being long hub turn. If long runs are eliminated and gotta stay shuttle I be finding something else. Won’t be nothing to be working up for in my opinion.
 
Corporations have increasing pressures through their ESG score.

By shifting to a contractor model and using electric trucks for drayage and city, FedEx can greatly reduce its environmental impact. The contractors would be the ones on the hook for the carbon crap, not FedEx.

Amazon is selling branded trucks to investors that want to “own their own small business”. Amazon will even match this new business owner to a driver, who then works for the contractor. Everything done by proxy. These drivers are payed in the low $20/ hour in most areas.
 
If you don't believe it is coming than you are blind.. All they needed was a turn in the economy. They have already blended FXG and FXE and separated from company workers. It is coming and has been in the works ever since FXF started injecting themselves into PEAK. A contractor model saves so much especially in health benefits.
Now what I could see happen is blended locations with city being contractor and using linehaul network to run FXF/FXG and some FXE. That alone would cut on a huge amount of cost and FXG is already running contractor / city routes.
To stock holders they are not worried about who is doing what.. it is profit and profit alone and with the economic turn things will have to be done. Here is the thing... Executive leadership does not have to deal with contracts or negations .. Anything and will be implemented.
 
SIKOFITALL said:
FedEx only cares about the share holders and that’s it, bottom line! Remember that. If it comes down to the bottom line vs public image what do honesty think they’ll pick?

I hope you get your run you’ve been waiting for
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Every corporation's board of directors has a fiduciary duty to the owner/shareholders. No one ever started a company to create jobs.
 
Talkischeap said:
If you don't believe it is coming than you are blind.. All they needed was a turn in the economy. They have already blended FXG and FXE and separated from company workers. It is coming and has been in the works ever since FXF started injecting themselves into PEAK. A contractor model saves so much especially in health benefits.
Now what I could see happen is blended locations with city being contractor and using linehaul network to run FXF/FXG and some FXE. That alone would cut on a huge amount of cost and FXG is already running contractor / city routes.
To stock holders they are not worried about who is doing what.. it is profit and profit alone and with the economic turn things will have to be done. Here is the thing... Executive leadership does not have to deal with contracts or negations .. Anything and will be implemented.
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So you FedEx is more apt to using a contractor to run city routes as opposed to line haul?
 
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