CORPORATE communication FEEDBACK

Discussion in 'Fedex Freight' started by SwampRatt, Mar 17, 2015.

  1. SwampRatt

    SwampRatt Well-Known Member

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    I think it's time to look seriously at "some" enhancement to the city side of the operation. We have covered this before, but let's put things in perspective. We are talking about Drivers, really. There is no reason to differentiate between city and road, in terms of benefits..

    1st The QUALIFICATIONS are exactly the same. No difference.

    2nd All pay structure applies equally to both, when performing the same function. Road and city both get paid mileage at identical rates when performing mileage tasks, both also get the some hourly rate when performing hourly tasks. Same pay structure also applies when performing flat rate tasks, like drop/hook/fuel, etc.

    3rd We all have the same insurance. Costs, co-pays, deductibles are all the same for ALL drivers.


    Eveything on down the line, as far as pay structure, applies to ALL DRIVERS, Period. Well, almost everything. The one thing that is different, which is far more fair for the road driver, is the VACATION BENEFIT.

    Even a city driver who does a significant amount of road runs, still gets a city vacation benefit, while a road driver who spends most of his time working the dock, gets a road driver vacation benefit. Does this seem to be fair and reasonable? Of course not.

    Can anyone justify... Really, honestly justify this?
     
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  2. SwampRatt

    SwampRatt Well-Known Member

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    Continuing on the Vacation benefit topic...

    City drivers Vacation benefit is a flat 40hrs/week. Road is based on a percentage of annual earnings (annual divided by 52 = 1 week vacation pay)

    Now then, we know there is a certain cost associated with bring the city in line with the road, and finally making the benefit the SAME for all drivers. That cost is said to be 8.6 mil. Not a small figure, BUT... And this is important... That amounts to between 1 and 2 tenth of 1% of the whole budget. A FAIRLY SMALL COST in the scheme of things.


    To keep these figures in perspective, if the budget was $100, the cost would be between 10 & 20 cents. That's right 10-20 cents per $100 bill, to make the city operation equal in that one area. Pretty cheap, it seems to me.
     
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  3. aflifer

    aflifer Well-Known Member

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    Great info swamp.......

    I am in no way shape or form going to argue against your proposal, but as always I have a few questions/comments to try and help me wrap my head around the figures.

    Where did you get the 8.6 mil figure?

    What figure are you using for the "total" budget?

    From our past conversations, I know you prefer looking at revenue, while I like the OI approach.

    The way I look at it is this:
    Last fiscal year FXF made 137 million in operating income, which is precisely where I figure the money to pay for this benefit would come from.........that resulted in an OR of 8.7%. If we take the 8.6 mil figure you quoted and deduct it from the OI, it would leave us with 128 million at an OR of 8.1%.

    Again, not saying it isn't earned, needed or feasible, just want to make sure that we are on the same page as far as the overall financial impact involved......I believe that until we are showing an OR over 10 that additional expenditures will/could/should be closely scrutinized, resulting in tougher decisions....the aic matrix you posted should give us all a great indicator of what OR is factored into the financial planning each year....

    Good stuff sir.....
     
  4. aflifer

    aflifer Well-Known Member

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    Well.......I told you before numbers kind of befuddle me sometimes. Just realized I posted 4th quarter figures in the OI. Same principle I guess, but it would cut the OR impact down significantly when carried over the full year......my apologies for the inaccuracy.....
     
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  5. SwampRatt

    SwampRatt Well-Known Member

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    Thanks again aflifer.

    The source of the 8.6 figure is going to have to remain unnamed. I fully expect the number to be questioned, but I won't question the integrity of this source. You'll have to trust me on the fact that this number is reliable and comes from (perhaps) the most informed person possible. I trust the number and the source, without question.

    We could, perhaps duplicate the number, but that would require extrapolating several sets of numbers to get ball park figures. I simply don't have certain numbers, such as number of city drivers, average hours, and average tenure. Using guesstimates, I came up with 9.5 mil, so I overestimated one, both or all three. I'd be happy to show how I got that number, if you're curious. Again, the number (8.6) is/was as absolutely correct as it can/could be, considering the predictive nature of the number.

    Total Budget: It seems to me the total budget would have to be (as you predicted), based on revenues, with costs calculated as a percentage that.

    8.6 (cost) as a percentage of 6191 (2015 revenue), in millions, is .139%. Using the previous $100 bill for perspective, the cost is 13.9 cents per $100.

    I appreciate your example of the effect of the 8.6 mil cost on the Operating Margin. For me, the principal of reasonable and fair outweigh the details of how to get there. Much like founding principals/business principals/core principals, we shouldn't ever waiver. Whether it's people first or PSP, the principals should trump the tenths of one percents... IMHO.
     
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  6. SwampRatt

    SwampRatt Well-Known Member

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    I especially like what the correction does to the effect on the margin. :1036316054:

    Thanks for the update :clapping:

    It's a shame we can't just take this straight to Mr. Ducker, and get this passed through, right away.
     
  7. Crazy Trucker

    Crazy Trucker Clown Math Expert

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    Lol
     
  8. Crazy Trucker

    Crazy Trucker Clown Math Expert

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    Ive got a question? If we send city drivers to different centers to help out, do they make their normal rate or do they make that center's rate? Just curious because we have to many city drivers and have been sending them to help out at different centers.
     
  9. SwampRatt

    SwampRatt Well-Known Member

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    Drivers always make their domicile rate, regardless of where the work is performed. In fairness, expenses (travel, lodging, and meals) are covered by the Company.
     
  10. SwampRatt

    SwampRatt Well-Known Member

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    Just to clarify, the effect that 8.6 mil has on the Operating Ratio/Operating Margin is the same 0.0013891132288806 figure (.139%), even when using Operating Income instead of Revenue.

    Based on the 2015 Annual report:
    [​IMG]
     
    Last edited: Nov 1, 2015
  11. aflifer

    aflifer Well-Known Member

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    I agree with you to an extent on the fair and reasonable factor. My only caveat is that changes must keep us in good financial position, so as to ensure we are as viable as possible moving into the future. I am sure that there are lots of changes that would result in positive contributions, but negative impacts to the overall financials must be weighed very carefully, as it is almost akin to buying something on credit. That said, I think you personally are epitomizing a "founding" principle that lost its way within our culture over the last several years. Not sure why, but it seemed as though many of the "ideas" dried up to an extent, which silenced a lot of the innovation that lead to our success in many previous years. Whether they weren't being shared out of frustration, weren't being forwarded up the ladder as needed or simply dried up, I don't feel that the contributions were there as compared to previous levels. I attribute some of it as a need to standardize things with the mergers, which through snapshot, etc wore a lot of folks creatvity down to a nub. Regardless of the reason, it needs to be reingrained as part of our culture. From what I have seen so far, Mr Ducker undertands that and has been taking great measures to get it flowing again, which gets him a big ol' hat tip from me.

    Bottom line is.......whether or not your recommended changes come to fruition, keep the thoughts and ideas flowing......that needs to be a huge part of the "living psp" culture that is being sought by many right now.....

    Be safe.....
     
    Last edited: Nov 2, 2015
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  12. aflifer

    aflifer Well-Known Member

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    I have a question for you swamp.....

    I heard a number the other day that I am having trouble deciding what it means.

    Healthcare is obviously a huge topic for us and pretty much the rest of the country, but it is also very individualized. I consider myself pretty lucky, as my family has actually rolled over funds in the HRA the last couple of years.

    In your opinion, what % of our employees would need to share the same result I have seen (basically 0 out of pocket) before the plan could be considered "successful" in the global view? I believe there will always be those that will have higher costs as well as a % with lower costs. I am having a hard time settling on a figure that could be considered "fair and reasonable" to judge the overall performance of the plan. Generally have found your opinions very sound in the General area....
     
    Last edited: Nov 2, 2015
  13. SwampRatt

    SwampRatt Well-Known Member

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    Interesting question af. I too have rolled over some Health Reimbursement Account balance. Before going any further, I will say there needs to be a more clear indication of what that balance is, at any given time, as well as the exact amount, if any, that is rolled over. I pay pretty close attention to things, but can't tell you where to find that info, short of calling directly to ask.

    I might like to think about that question, a little bit, before answering. When I first read your question, a number popped into my head. I'll share that with you later. I'm not sure where the number came from, but it seems high on the surface. I asked my wife her opinion, and the same number was the first to pop into her head as well.

    Now then, adding credibility to this higher number, is the fact that the "zero out of pocket", only relates to the portion of medical covered by the HRA. There are other costs (prescriptions for example) that are not reimbursed. Also, keep in mind, many delay visits and or treatment, in order to preserve the balance in that account. Once that balance is used, it's a pretty significant amount that will be spent meeting the deductible, before any further coverage is applied.

    Stay tuned, but I'm not sure that there is a correct number. Or is there?
     
  14. aflifer

    aflifer Well-Known Member

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    Sounds kind of like where I am at with it......I feel that the days of zero deductible type plans are pretty much gone, but that shouldn't mean that there isn't opportunity for reliable basic coverage for most folks. I certainly realize that other costs exist, like you mentioned, but also feel that they will have very high variance and would be tough to get a baseline on......

    Like you, I am unsure if there is a correct number to look at, or what it might actually be. Basically, would like to be able to look at it on a global scale in order to better gauge where it is at on an overall level. That is NOT to say that folks with higher need levels don't need to be reviewed and updates made to ensure they are covered at acceptable levels as well.

    I guess I just look at the coverage and hra account as the "basic" coverage. You will always have folks on both ends of the spectrum outside of the norm, but that is pretty much what group insurance is all about.

    I will let you know that I was surprised a bit by the number I heard, which is what really got me thinking about it....

    Carry on....
     
  15. silent trucker

    silent trucker Well-Known Member

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    I sincerely doubt there is a correct number. The whole point to co pays and deductibles is to force folks to think twice about going to the doctor, without endangering their health in the process. My wife works for a major health care company, and you'd be stunned if you realized the reason most emergency rooms are filled to the brim...people with paper cuts. Yep, cry babies, and I'm personally convinced most are FxF employee's. OMG, I'm bleeding to death here! Here's an effen bandaid you moron.
     
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  16. Redracer3136

    Redracer3136 BANNED

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    Please excuse me if I've misunderstood your question but can't you find that info pertaining to your HRA on Anthem's website? I can log on and see exactly how much is in my HRA at any given time. As for the amount rolled over, wouldn't simple arithmetic answer that question?
     
  17. SwampRatt

    SwampRatt Well-Known Member

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    Thanks Red. THAT is helpful info. I'd not logged into the Anthem site, only the Cigna one, which only covers dental. I was actually looking at the fedex benefits site and couldn't find anything.
     
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  18. SwampRatt

    SwampRatt Well-Known Member

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    I think that to some extent the percentage that use the insurance, while fairly constant, includes different people each year. Certainly some consistently utilize it to significant (high) extent, while MOST don't use it enough to crack the deductible threshold. Many of those who do, probably do so , on a high scale. This is speculation, I admit.
    The number that came up (out of thin air?) was 75%, but that was in an effort to provide a universally agreed to success level. Realistic? I don't know. I'm sure the Company and many analysts would consider any number above 50% successful. I suspect the true and realistic number to be somewhere between the two.

    Again, I've got little to base that opinion on, other than personal track record and purely subjective reason. The vast majority of the time, in past years, I've not met the deductible, but when I did, I blew past it with a vengeance. That deductible used to be down in the ball park of the HRA, so I guess that is where the number came from, rather than thin air. :idunno:
     
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  19. aflifer

    aflifer Well-Known Member

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    I would have to say I reside in that same ballpark as you do (somewhere between 50 and 75 being the ideal target). The number that I heard was that we were running a bit shy of 50%. That would have to have been based on 2014's results, as we obviously haven't finished 2015 yet. Unclear whether familiarity with the process that was new in 2014 would move that number up or down going forward. Not sure why I assumed it would actually be quite lower. Guess it is probably because the feedback ratio probably leans toward the negatives. I always try and utilize the "just because it isn't important to me doesn't mean it isn't important" approach when looking at things like this and probably thought my situation was more of an anomaly. Turns out I guess I wasn't as "special" as I originally thought. Interesting exercise though.......trying to figure out how you would gauge successfullness of a program covering a couple of hundred thousand people in a diverse group like that.

    Carry on.....
     
    Last edited: Nov 4, 2015
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  20. SwampRatt

    SwampRatt Well-Known Member

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    I wonder if there will be a November communication... Should be coming soon...
     

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