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

braunconsulting.com

61–70 of 84 posts

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

#61
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…

[deleted]

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

#63
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 is a naive comparison when taken out-of-context. Frankly, I don't really understand how you could be an independent contractor working 5 days a week on a single route contract for FedEx -- when would you have time to service your truck or how would unpaid sick days or vacation work -- but the retirement accounts are all commodities now, especially with the internet -- in fact, my CU offers better HSA than my former employer.

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

#64

Earlier quoted context omitted.

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.

Kodak is dead because of the MBAs outsourcing to Japan for short-term film profits...

Outsourcing what exactly?

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

#65
post #54

Earlier quoted context omitted.

Perhaps I'm comparing apples to oranges but my USPS guy who is the same nice man for at least the last 10 years, has been much more reliable than either the FedEx or UPS delivery staff. He even collected the strewn around mail from our mailbox the other day and visited us to let us know that someone has likely been stealing our mail and that we should check our credit cards. I'll miss him when he retires soon.

From my experience quality of USPS varies. Some employees are doing a superb job, but some just don't seem to give a f*k. I've seen mails delivered to wrong mailboxes, sometimes I've seen mail that is even from a different street. One time they marked item as delivered, before they actually did which made me worry it was stolen (fortunately the item was delivered 2 hours later). Other time (more an issue for Amazon i…

> but some just don't seem to give a f*k. I've seen mails delivered to wrong mailboxes

This happened to me during tax season no less. My only saving factor was that they put it into the mailbox of a relative who lived next door (and their last name is significantly different from mine) imagine a total stranger with my tax refund plus all that information. Thank you incompetent USPS employee. We definitely complained about them, not sure if they've sorted that out but I also bought a book not short after that, and you guessed it, my relative got my book instead.

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

#66
post #25

Earlier quoted context omitted.

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.

Kodak innovated just too late. They wanted to milk the profits from their film market as long as they could. That certainly wasn't a worker's decision.

In fact, they had their first digital camera in 1975. They basically shelved it.

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

#67
post #58

Earlier quoted context omitted.

Perhaps I'm comparing apples to oranges but my USPS guy who is the same nice man for at least the last 10 years, has been much more reliable than either the FedEx or UPS delivery staff. He even collected the strewn around mail from our mailbox the other day and visited us to let us know that someone has likely been stealing our mail and that we should check our credit cards. I'll miss him when he retires soon.

I love USPS, my packages shipped through them arrive before noon every time, never damaged, and if something requires a signature my carrier(a) wait for more than 3 seconds for me to get to the door.

I like USPS too. RFD isn't an option, so my mail goes to a post office in a nearby town. I often forget to check my mail and they just put it into a box for me. Usually, maybe once every two weeks, I'll go down and get it. If not, they hold it until the box is full and then they call me and tell me I have mail and should come get it.

The other delivery companies just drop my stuff off there or, if they aren't open, they'll drop it at the gas station/convenience store. UPS has gotten stuck on my lawn, twice. FedEx can never find the house. So, it is just easier this way and the post office has been very accommodating.

It is one of the great joys of living in a very rural area.

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

#68
post #49

Earlier quoted context omitted.

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.

I think it's kinda interesting that the HN takeaway is that Eastman was killed by its unions: if it had just treated its employees as disposable it'd still be the juggernaut today that it was in the 20th century. In fact our economy is littered with the detritus of collapsed or dying technology giants. To name just a few there's SGI, Sun, Thinking Machines, DEC and Yahoo. With the possible exception of DEC none of th…

Tangentially, I wish the discussions about "innovation" would distinguish between, and contrast, technological innovation and business model innovation. Those are two completely different beasts, and I suspect they arise under different conditions.

In your examples, for instance, Zynga and Groupon are companies that - as far as I know - did absolutely zero technological innovation; they're known for their business model innovations.

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

#69

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...

I'm amazed they still get away with this after losing multiple class action lawsuits over it, but apparently losing the string of class action lawsuits over violating labor laws is cheaper than just following the labor laws or they would have started following them a long time ago.

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

#70
post #28

I always feel like this contractor vs larger employee situation is weighted for early and late game. As a contractor style, at the start it seems fun there are potential rewards, etc.. but you need to manage yourself a lot more, and there is less of a safety net or any kind of belonging. As an employee style you are more of a robot at the start and have to submit to the company as it were, but later on you are looked…

FedEx's "contractors" conveniently get the worst of both worlds. They are treated exactly like employees except when it comes to pay/benefits. There have been multiple class action lawsuits over contractor misclassification and they just keep settling them.
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