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FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

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Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#11

Post by costcopizza »

eridius wrote: post #10
tyingq wrote: post #4

Interesting business space. Both UPS and FedEx manage to raise rates at a clip that is higher than inflation, every single year. Even when their costs decline, like when fuel prices dropped. I guess there is technically no collusion, but it doesn't seem like there is much competition either. It makes it difficult for smaller companies to do well because only the biggest companies get reasonable shipping rates. This i…

The only delivery company worse than Amazon's own delivery is OnTrac.

Only started seeing them when I moved to LA--they by far have the oldest delivery vehicles, some with noticeably worn out suspension parts.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#12

Post by jschwartzi »

There's some incorrect information in the article regarding UPS driver salaries. Drivers can make more than $100k/year if they work overtime. Some drivers make more than managers for similar amounts of work due to their being hourly.

This is all hearsay from the UPS driver that worked the route while I was clerking in a warehouse. He also seemed much happier than the FedEx drivers, both of which were pretty grumpy. He was also a lot more helpful and we often asked him to delay our pickup for last minute orders, which was something the FedEx drivers would never do.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#13

Post by coopernewby »

This article was written in 2004. Starting In 2005 FedEx got in a bunch of misclassification lawsuits over using 1099 contractors, today they have lost over $453 Million to these settlements. http://www.talentwave.com/fedex-worker-misclassification-cas...

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#14

Post by eridius »

costcopizza wrote: post #11
eridius wrote: post #10

Earlier quoted context omitted.

The only delivery company worse than Amazon's own delivery is OnTrac.

Only started seeing them when I moved to LA--they by far have the oldest delivery vehicles, some with noticeably worn out suspension parts.

OnTrac is the only company where I've had to call dispatch and request that they put a note on our address saying not to throw packages over the 10-foot gate onto hard concrete steps.

And I had to do that 3 times before they actually stopped.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#16

Post by SamReidHughes »

clumsysmurf wrote: post #7
katastic wrote: post #2

Perhaps I'm reading it wrong, but the article seems to slant in favor of FedEx using contractors. And then you look at the pros and cons. FedEx Ground Cons: - No benefits, no overtime pay, no sick time, no insurance - Drivers pay for vehicle, gas, supplies, insurance, and everything else - No company retirement, seemingly less stable environment - No Teamsters contract or collective bargaining - Drivers have only one…

This reminds me of a story posted here not long ago "To Understand Rising Inequality, Consider the Janitors at Two Top Companies, Then and Now" https://www.nytimes.com/2017/09/03/upshot/to-understand-risi... HN Comments: https://news.ycombinator.com/item?id=15161445

Sorry, did they use a janitor at Kodak as the example? The job market in Rochester was an anomaly in that time period.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#18

Post by pktgen »

ribs wrote: post #6

UPS has spent significant effort trying to put the Federal screws to FedEx in the past.[1] [1] http://reason.com/reasontv/2010/10/22/whiteboard http://reason.com/archives/2009/09/28/using-unions-as-weapon...

While UPS's motivation is obvious, their argument is valid. There is no good reason for FedEx Express drivers to not be covered by the NLRA.

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#19

Post by sjg007 »

katastic wrote: post #2

Perhaps I'm reading it wrong, but the article seems to slant in favor of FedEx using contractors. And then you look at the pros and cons. FedEx Ground Cons: - No benefits, no overtime pay, no sick time, no insurance - Drivers pay for vehicle, gas, supplies, insurance, and everything else - No company retirement, seemingly less stable environment - No Teamsters contract or collective bargaining - Drivers have only one…

FedEx => Uber => FedUbX Delivery

Re: FedEx vs. UPS: opposing models in the delivery business raise questions (2004)

#20

Post by godzillabrennus »

clumsysmurf wrote: post #7
katastic wrote: post #2

Perhaps I'm reading it wrong, but the article seems to slant in favor of FedEx using contractors. And then you look at the pros and cons. FedEx Ground Cons: - No benefits, no overtime pay, no sick time, no insurance - Drivers pay for vehicle, gas, supplies, insurance, and everything else - No company retirement, seemingly less stable environment - No Teamsters contract or collective bargaining - Drivers have only one…

This reminds me of a story posted here not long ago "To Understand Rising Inequality, Consider the Janitors at Two Top Companies, Then and Now" https://www.nytimes.com/2017/09/03/upshot/to-understand-risi... HN Comments: https://news.ycombinator.com/item?id=15161445

I fully support upward mobility but it's a tough argument to make that it was culturally good for an organization to promote people in part because of seniority.

Kodak is dead. In no small part because they lost their ability innovate.

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