William B. Cassidy | Jun 16, 2010 4:27PM GMT
The Journal of Commerce Online - News Story
LTL| Trucking| United States
Shipping volume increases, but price discounting cuts into earnings
FedEx Freight's losses more than tripled in the fiscal year ending May 31, as steep price discounting in 2009 cut deeply into its earnings, despite market share gains.
The less-than-truckload carrier reported a $153 million loss on $4.3 billion in revenue for its fiscal year, compared with a $44 million loss on $4.4 billion in sales the previous year.
The company did narrow its losses in the fourth quarter, as LTL carriers called a truce in their price war and began trying to prune unprofitable freight from their books.
FedEx Freight lost $36 million on $1.23 billion in revenue in the fourth quarter, compared with a $106 million loss a year ago, when sales totaled $948 million.
Over the past year, FedEx Freight became the largest stand-alone LTL carrier in the nation, passing YRC Worldwide's nationwide LTL subsidiary YRC in sales.
Its shipment volume increased 11 percent for the full year, rising from 74,400 shipments to 82,300 shipments per day. LTL yield, however, dropped 10 percent for the year.
In the February-to-June quarter, daily LTL shipments increased 34 percent at FedEx Freight. The company's LTL yield declined, but at a lower rate than in the third quarter.
Revenue per hundredweight fell 6 percent in the fourth quarter, compared with 8 percent in the third quarter. In the fourth quarter, FedEx Freight handled 91,500 shipments a day.
Thursday, June 17, 2010
Tuesday, June 15, 2010
FedEx Loophole Prevents Express Drivers From Joining Unions
As many as 100,000 workers who drive trucks and deliver packages for FedEx Express face unfair obstacles to organizing unions because the company has been misclassified under federal labor laws, according to a new report from The Leadership Conference on Civil and Human Rights.
The report, "Railroaded out of Their Rights," explores the history of FedEx Express' coverage under the Railway Labor Act (RLA), a 1920's era labor law that was intended to regulate the railroad and airline industries. FedEx Express has lobbied aggressively to remain covered under the Railway Labor Act (RLA), while similar package-delivery companies such as UPS are covered under the National Labor Relations Act (NLRA).
The report, "Railroaded out of Their Rights," explores the history of FedEx Express' coverage under the Railway Labor Act (RLA), a 1920's era labor law that was intended to regulate the railroad and airline industries. FedEx Express has lobbied aggressively to remain covered under the Railway Labor Act (RLA), while similar package-delivery companies such as UPS are covered under the National Labor Relations Act (NLRA).
Monday, June 14, 2010
Anaheim Driver Says
The Los Angeles service center has taken manpower management to a new level; commonly known as terrorism, yes, terrorism. Los Angeles management made it mandatory for hourly employees to view anti-union videos (propaganda) and sign statements denouncing unionization. This is simply a scare tactic, pure manipulation focused on the uninformed and the uneducated segment of FedEx employees. Are we entering a new phase of Human Resource Management? Are we entering a new era of employer vs. employee warfare? If so, I pray that it remains non- violent.
According to the National Labor Relations Act (or Wagner Act) which is a 1935 United States federal law limits the means with which employers may react to workers in the private sector that create labor unions, engage in collective bargaining, and take part in and other forms of concerted activity in support of their demands. Employers cannot prevent employees from organizing or participating in union organizing efforts.
Whatever LA management used to manipulate their FedEx workers into signing, there will be legal ramifications.
What is truly sad is that every manager at the Los Angeles service center could be deported if pulled-over without their birth-certificates in Arizona.
So to me, that says that the sorry group of managers in that non-diverse part of Arkansas singled out the minority controlled service center in Southern California to conduct this Nazi type program.
Patients are wearing thin, organize now!
According to the National Labor Relations Act (or Wagner Act) which is a 1935 United States federal law limits the means with which employers may react to workers in the private sector that create labor unions, engage in collective bargaining, and take part in and other forms of concerted activity in support of their demands. Employers cannot prevent employees from organizing or participating in union organizing efforts.
Whatever LA management used to manipulate their FedEx workers into signing, there will be legal ramifications.
What is truly sad is that every manager at the Los Angeles service center could be deported if pulled-over without their birth-certificates in Arizona.
So to me, that says that the sorry group of managers in that non-diverse part of Arkansas singled out the minority controlled service center in Southern California to conduct this Nazi type program.
Patients are wearing thin, organize now!
Friday, June 11, 2010
A Truck Driver is a Truck Driver, Not an Airline Pilot
By Teamsters General President Jim Hoffa
Published By The Hill on June 10, 2010
A truck driver is a truck driver is a truck driver. All the bullying and threats by FedEx Chief Executive Fred Smith to Congress won’t change that simple fact.
But Smith is demanding that Congress preserve a special loophole that applies only to FedEx Express – or else. In 1996, Smith lobbied for, and essentially received an exemption from the labor law that governs every other package delivery company in the United States.
As a result, FedEx Express is covered by a labor law that applies to only airlines and railroads. So even though FedEx Express drivers pick up and drop off packages exactly the same way as every other delivery driver in the United States, they are treated like airline pilots under labor law. Because of this, they face legal barriers to joining a local union.
The Teamsters Union has launched a campaign to remind Americans that truck drivers are not airline pilots.
You’d think we wouldn’t need to explain the difference – that truck drivers’ cruising level is about four feet off the ground, and pilots don’t have to stop the plane to use the bathroom.
But FedEx Express insists on telling Congress that it’s an airline. That’s quite a pronouncement for a company that employs more than 90,000 truck drivers, sorters, loaders and unloaders who don’t even touch an airplane. FedEx has 13,000 more truck drivers than UPS, according to the U.S. Transportation Department.
And FedEx trucks log about 165 million more miles a year than UPS trucks.
READ MORE
Published By The Hill on June 10, 2010
A truck driver is a truck driver is a truck driver. All the bullying and threats by FedEx Chief Executive Fred Smith to Congress won’t change that simple fact.
But Smith is demanding that Congress preserve a special loophole that applies only to FedEx Express – or else. In 1996, Smith lobbied for, and essentially received an exemption from the labor law that governs every other package delivery company in the United States.
As a result, FedEx Express is covered by a labor law that applies to only airlines and railroads. So even though FedEx Express drivers pick up and drop off packages exactly the same way as every other delivery driver in the United States, they are treated like airline pilots under labor law. Because of this, they face legal barriers to joining a local union.
The Teamsters Union has launched a campaign to remind Americans that truck drivers are not airline pilots.
You’d think we wouldn’t need to explain the difference – that truck drivers’ cruising level is about four feet off the ground, and pilots don’t have to stop the plane to use the bathroom.
But FedEx Express insists on telling Congress that it’s an airline. That’s quite a pronouncement for a company that employs more than 90,000 truck drivers, sorters, loaders and unloaders who don’t even touch an airplane. FedEx has 13,000 more truck drivers than UPS, according to the U.S. Transportation Department.
And FedEx trucks log about 165 million more miles a year than UPS trucks.
READ MORE
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