Without turning this into a pissing contest you know the company through a canada contract for owner operator with one truck. Heres my experience with the contractor side with Watkins. Most owners owned five or more trucks, were driven by people who speak very little English so miles dont mean crap to them as a employee to the owner. They didn’t always get team miles and had to layover in California for days but yet the owner of the truck seemed to be always happy. What ever your talking about with magnetic logos may of happened in canada but never here. I respect your opinion but I recall the rail was to be a TRIAL. We all know how that ended. You have been away to long to sway my thinking. Been through to many lies here to believe this is a good thing. For who may I ask
You don't seem to be understanding me. I'm not talking about how CANADA does it, nor am I talking about how WATKINS did it. I'm trying to get you to understand that "contractor" does not mean "cheap labor" and that the Watkins days are from a different time when drivers were willing to work for less and cheap foreign labor was a growing problem. Now? The going rate for an owner/operator's driver is $0.50/mi and climbing fast.
I DO know that Watkins linehaul contractors who serviced Canada knew what FedEx was willing to offer. I DO know almost nobody was willing because the contract wasn't worth the paper it was written on. Why? Because FedEx hit them with the Ground model, but for less pay, no means of bidding on a run, and no operating authority.
I also know that there were SOME
US linehaul contractors who stayed because they were big enough to afford their own operating authority and were located in areas they were needed. A number of these contractors left when National was merged into Freight, but a few stuck around. They were not obligated to use magnetic signage but many did because the ones left were actual small companies with FedEx serving as just another customer. As I said, I've seen photos. It was a red Peterbilt 379 with a FedEx Freight logo and associated numbering set on a white square on the side of the door.
Canada does not allow this. FXFC tractors must be white as per the contract. And this tractor was pulling a set. The photographer was a FedEx Freight employee and specifically remarked on how rare it is to see a contractor.
Finally,
none of that really matters because if these people were employees they would be even more likely to give them that 800mi run.
I never said that this was a GOOD thing for you. It IS good for FedEx, as anything they do would be. What I AM telling you is that if FedEx wanted to replace you with contractors, they would have done so YEARS ago. And indeed if they wanted to reduce the number of meet and turn runs, teams are less preferable to just laying down a road driver because finding two truckers that'll put up with each other is HARD.
You are looking at it from a perspective of "someone who doesn't work here is hauling my freight" and that's
the wrong way to be looking at it. If these guys worked for FedEx like you do, it would have the exact same effect on you. The reason FedEx is using contractors for team runs instead of employees? It places the burden of finding a second driver on the contractor, and if the trial fails they can let them all go with zero consequences. How do I know? Because as a businessman myself, that's what I'd do. Lower exposure, less risk, but with the potential to decrease the transit time between hubs? At that point, cost doesn't matter because you can offer a premium service to make up for it.
At the end of the day, this is unlikely to have a meaningful effect on anyone but PTS contractors. And seeing them disappear is always a win in my book.