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CEO says: In summer 2021, he says, “we were 40,000 package-handlers short, and there were people in the media saying that the stimulus checks didn’t have anythi
by TxProgrammer 5y ago
CEO says:
In summer 2021, he says, “we were 40,000 package-handlers short, and there were people in the media saying that the stimulus checks didn’t have anything to do with that.” Such people are “divorced from the world we’re living in.” FedEx made up the shortfall by December: “It took a lot of effort.” Mr. Smith concedes that large numbers of people may simply have decided not to work for fear of the pandemic. But “if I’m getting a government check,” he says, there’s less incentive to “go into a warehouse.”
for the average worker:
15 per hour average FedEX package handler salary - from another source on the shipping industry “They underpay everyone. The cost per package is literally .12 to .40 cents and we’re paying people $50.00 to unload four 45ft. trailers in 3.5 hours.”
making a company a success by shortchanging the little guy is the American Way.. the American public is fine getting their crap delivered fast..as long as its cheap right
- sj4nz 5y agoThis is pretty much why 1/5 of packages I'm getting via FedEx Ground are smashed or damaged. They aren't even supposed to be "overnight" and mishandling is rife.
- FYYFFF 5y agoFYI FedEx ground is a separate company. They are actually locally owned / individually owned franchises that pay FedEx to route and ship their packages. The routes are owned by individuals. Its a great biz as many are making very good livings managing the routes.
- deleted 5y ago[deleted]
- Spooky23 5y agoYeah Fedex is a "you get what you pay for" company. They bid low and underdeliver. The problem they have is that geography drives the business, and their hubs are usually near competing hubs for UPS. They must have made a policy decision to not get into a price war re: wages with UPS. My guess is that Amazon's logistics buildout is hurting them more than UPS.
- tyrfing 5y agoIf you're curious how that was solved, it certainly wasn't stimulus or unemployment running out. It was FedEx increasing starting pay rate 30-40% overnight, bringing them near parity with competitors.
- gitfan86 5y agoThe good news is that people like this CEO are pissed off because things have changed. Welcome to America Mr. CEO, where I can sit on my ass until you pay me enough that I fell like working for you. You don't like it? Well you can set an example and you can start working for $9/hour.
- bch 5y agoA bit late for that to be a meaningful example.
- res0nat0r 5y agoFedEx had a labor shortage during Covid unlike UPS because it wasn't unionized and paid much less. https://www.bloomberg.com/news/articles/2021-11-04/labor-shortage-ups-union-drivers-give-delivery-service-edge-over-fedex-fdx https://www.bloomberg.com/news/articles/2021-11-04/labor-sho... >The massive labor shortage that’s rocked the U.S. since the pandemic and disrupted long-established employment relationships hasn’t had much impact on UPS, which pays its unionized drivers the highest wages in the industry. That’s helped it maintain a stable workforce and rising profits throughout the current disruptions. Meanwhile, lower-paying, nonunionized FedEx racked up $450 million in extra costs because of labor shortages. And while UPS easily beat earnings expectations and predicted a rising profit margin in the U.S. for the fourth quarter, FedEx signaled that its profit margin will fall further.