FedEx struggles to buoy its logistics and supply chain services that are being heavily impacted by employees calling out sick, even as the pandemic wanes.
“The explosive surge of the COVID-19 Omicron variant has caused a temporary shortage of available crew members and operational staff in the FedEx Express air network,” officials warned in January.
After fulfilling the legal requirement of providing employees with WARN notices, a FedEx facility in Tobyhanna, Pennsylvania, plans to shutter permanently. The move is expected to leave 213 workers without jobs.
“FedEx Supply Chain operations at 2086 Corporate Center Drive West in Tobyhanna, PA, will be discontinued in 2022. We have provided information to our team members to learn about job openings at other FedEx Supply Chain facilities and other job opportunities nearby,” a company statement indicates.
The layoffs are expected to come in three phases, beginning April 1. Other businesses in that area of the Poconos also struggle to fill their workforce. But the FedEx closure took residents by surprise, given the rising wages associated with warehousing and trucking jobs.
“Maybe it’s just the location, but I thought trucking was on the way up, on the rise,” James Burke, a nearby tavern owner reportedly said. “We’ve been struggling for a while, we’ve been shorthanded, but it sounds like a broken record. I’m not the only one that’s shorthanded. A lot of restaurants and the service industry itself is shorthanded.”
In Portland, Tennessee, a FedEx Supply Chain facility also served employees with a WARN notice, and 65 residents are bracing for layoffs to start on April 4. Although ranked among the largest courier and delivery outfits in the U.S., FedEx has been losing ground in recent years.
In September, FedEx reportedly suffered a 7-percent drop in profits for the third quarter. The Memphis-based organization also reported a $450 million year-over-year labor cost increase. Logistics and freight insiders had predicted the household name delivery outfit would slip into decline as far back as 2019.
This is not to say business leaders at FedEx are not working diligently to revitalize operations. The delivery giant recently resumed its international economy Express freight services. However, domestic 2-Day and 3-Day freight services remain suspended due to labor shortages.
By contrast, rival United Parcel Service (UPS) has not necessarily lost ground due to employees calling out sick. Recent reports indicate UPS has picked up delivery slack and ramped up its profits. The Wall Street Journal reports UPS has earned more while shipping fewer parcels and plans to boost dividends by 49 percent.
Omicron is like a cold. Why would anyone call in sick?
Because our retarded government will pay you to stay home ! The country is imploding from within with the policy’s of this administrations .
Because you get more money staying home then if you work! ( it’s a Shame) but the truth. I drove for over 24+ yrs coast to coast, loaded and unloaded my own freight, now a days, this Generation, so many want a big paycheck for as little work as possible!I wish I could work again, it’s a Trucker’s market place out there now, specially if you got lots of Experience under your belt.Unfortunately, I’m Disabled and my working days are over.Good people, Good drivers, and Honestly are far, few between!!
There is NO SURGE in COVID!!! The FedEx Air is “UNION” Pilots. They call out sick because they get PAID either way. One hub FedEx should shut down & close is Atlanta GA. THAT place is worthless, racist, SLOW & EVERYTIME we’ve been to that place, we’ve had to SIT & WAIT. We waited 32 hrs, B4 they bobtailed 15-18 of us to Mississippi only to WAIT AGAIN 15 hrs., B4 FINALLY getting or home load.
The happiest day of my life was the day I sold my truck and abandoned my MC#.
Air freight and expedite freight is a?joke , customer gets reamed so many ways , and driver sits around and waits ?, then all of a sudden they say here it is haul ass
I thought it was because every big wreck on an inter-state usually has one or two Fed-Ex trucks in the middle of it.