What is FedEx Express ?

Discussion in 'FedEx' started by Hottub, Feb 15, 2012.

  1. ExpressJames

    ExpressJames Bobtail Member

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    The reason Freight has 'good wages', is due SOLELY to the threat of unionization. If FedEx could somehow pull off getting Freight under RLA - wages would immediately stagnate there too.

    Freight is under the FedEx umbrella just like Express - FedEx DOESN'T like to pay a penny more for anything than it has to. It is ONLY the threat of unionization that keeps FedEx from trying to pay Freight drivers the same as Express RTDs (the ones with less than 12 years or so with Express).

    The threat of unionization is enough to keep most corporations somewhat 'honest' in compensating their employees. Since that threat was eliminated from Express back in late 2010 - there has been no reason for Express to offer any real pay raises or pay progression. The saying in Express is; "If you don't like the way it is, there's the door" - and many indeed are making their way towards that door (exit) in Express.

    I got just under a 40 cent pay increase this past March (that was IT for the year), and am still below what Freight pays its STARTING drivers. There is no 'individual performance review' any longer at Express - ALL wage employees receive the same pay adjustment - with the only variable being how far in 'progression' a particular employee is (Express is trying to keep the last of the high seniority wage employees happy - to keep them from agitating for unionization).

    I've been with Express for a good while and am no where near the top of range (which only drivers who were with the original Federal Express, pre-1993 hire date, receive). Those drivers by the way topped out in 4 years on average - some who hired on in the early 80's topped out in 23 months. When I hired in to Express not too far after the turn of the century, time to top out had reached 15-17 years. Now, it is a bad joke, it is mathematically impossible for ANY Express wage employee to make any real (post inflation) wage progression - they are stuck.

    If I could've received $1/hr pay raise every year till top out, along with a cost of living (inflation) boost on top of that - I'd be delighted and would have a far different opinion of FedEx. Freight drivers (those below top out), got (from your assertion), a total of $1.80/hr pay raise for the past year - and are counting on that till they hit top out for their respective market. I got less than 40 cents an hour, am a lot closer to Express' bottom end wage rate for RTDs than top out, and have absolutely no assurance that Express will give out and pay raise next year - they hand out what they want, when they want - since they only thing Express has to worry about is excessive turnover (it costs them a pretty penny to develop new hire RTDs before they can be cut loose on the road).

    The reason for the difference between Freight and Express... FedEx is worried that Freight may unionize if they push things too far there, while in Express, that threat of unionization was eliminated back in late 2010.

    During Express' annual SFA sessions (Survey, Feedback, Action), the wage employees constantly hammer home the fact that those with less than 15 years in, are BADLY under compensated. Express management knows the employees gripe about their pay - and really don't give a ####. I work side-by-side with guys doing the exact same job as me, and they are paid about $7/hr MORE than I. The only difference is that they managed to hire in when Express had pay progression, and I hired in after the turn of the century when pay progression had slowed to a crawl, then came to a complete stop in 2009.

    Just the fact that the Teamsters are actively attempting to organize Freight, causes FedEx to be a lot more generous with its compensation at Freight. FedEx would rather throw a few more dollars at its Freight drivers and keep the Teamsters out, than try to screw the Freight drivers over with $17/hr pay and have Freight drivers certify representation within 6 months as a result - which would cost FedEx A LOT more in wages and benefits.

    So... what does this all mean to the truck driver that is looking for a job at Express???

    If you are currently driving OTR, are getting tired of living in a tractor and would like to be able to go home at the end of each day, Express would be a viable option for you ('you' are who Express is looking for to replace the retiring and quitting RTDs). The compensation won't be much different from what you are getting from driving OTR (you'll pull in about $36k a year working full-time in most Express markets) - but you'll be able to sleep at home at the end of every day.

    However, there is no pay progression in Express any longer, the health insurance covers less and less each year, and the pension is an absolute joke now - the 'old' pension was taken away at the end of 2008. You can't call working for Express as a new hire wage employee a 'career' any longer - it is simply a job until you find something else that you can call a career.

    If you are able, you'd best be advised to look at Freight - you'd be paid more to start, have regular pay raises and because FedEx has to constantly worry about you and your co-workers unionizing, they will have to compensate you just enough to keep you from getting real pissed off and signing that dreaded union representation card the Teamsters like to hand out.
     
    Last edited: Jul 23, 2015
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  3. DSH69

    DSH69 Bobtail Member

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    Thanks for the great info! I was curious as I just got hired on with Freight from Express where I was a courier. Talking with a friend who is an RTD he is making $25hr but only PT. I had no idea what they started out at (and neither did he).
     
  4. ExpressJames

    ExpressJames Bobtail Member

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    RTDs are in the same pay grade as Swing Couriers - pretty sure... So moving from a Courier to a RTD position would only gain one around 75 cents an hour or so.

    The reason one would move from Courier to RTD, is if one got completely pissed with the "AIM" program, and decided to get a marketable skill with which to get the hell out of Express with..... just saying (for those who are currently in Express).

    $25/hr is top out in Market Level A - must have been with Express since the early 90's or earlier - and in a Courier or RTD position since the early 90's at least (could've also been a Dispatcher or Ramp Agent too in that time period, same general pay scales). Time spent in a lower pay grade (Handler, DG Agent) does next to squat for progression when one moves into a higher pay grade.

    My question is did Freight let you keep your seniority date you had with Express, or did they set your seniority date to your first day with Freight?

    I know of many 'transplants' to both Freight and Ground (into salaried positions), that were more or less induced to leave Express for the other opcos, with one of the benefits of being able to keep their seniority date from when they hired into Express.
     
  5. DSH69

    DSH69 Bobtail Member

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    My friend has been with Express for 16 years. He started as a handler and moved to RTD.

    Honestly, I have no idea if I kept my seniority or not. I've only been with Express for about a year and lack of hours is the only thing that started me looking at Freight. About a 30% bump in hourly pay plus full-time hours was enough to entice me :) Though I will admit, and I told my management as much, I really like my courier job. I'm just not getting the hours they promised me.
     
  6. MadeinMX

    MadeinMX Light Load Member

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    You keep your employee number, but you start all over again on seniority.
     
  7. Sean_Memphis

    Sean_Memphis Light Load Member

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    That's not true. FedEx Express was started by Fred Smith as a pkg. delivery service.
     
  8. ExpressJames

    ExpressJames Bobtail Member

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    He (LW88 ) meant FedEx Freight - people crosslink the different operating companies all of the time (FedEx actually LIKES that, since it serves their purposes of appearing to be a single company to the public at large).

    Federal Express transformed into FedEx Express back around 1997. At the same time, FedEx Corporation was 'born', to become the holding corporation for what they planned to be a whole list of separate operating companies.

    FedEx Ground is the former Roadway Package System, which was brought under the FedEx umbrella in 2000.

    FedEx Freight is the former Viking, Watkins and American Freightways. They were officially branded FedEx Freight back in 2002. There was a separation between LTL operations - but that was ended a few years ago.

    FedEx Office was Kinkos, which was brought in as FedEx Kinkos back in 2004, and the Kinkos name entirely dropped in 2008.

    FedEx Custom Critical was the old Roberts Express, which was brought under FedEx in 2000.

    There are a whole list of other FedEx operating companies, which provide specialized services related to logistics.

    As far as truck driving is concerned:

    FedEx Express - employee drivers, substantial turnover as of current - due to low wages that are not market competitive.

    FedEx Freight - employee drivers, wages significantly higher than Express, due to the threat of unionization if FedEx tried to use Express wage practices in an environment in which unionization is significantly easier for employees.

    FedEx Ground - all drivers work for an Independent Contractor (IC) or Independent Service Provider (ISP)., the drivers are employees of these ICs and ISPs, but NOT of FedEx Ground

    FedEx Custom Critical - Owner Operators. Work solely for FedEx Custom Critical who performs all the load dispatching, pricing to customers, etc. Some of the owner operators own multiple vehicles and they in turn hire employees to operate these vehicles for them - but NONE are actual employees of FedEx Custom Critical.
     
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  9. radioshark

    radioshark Road Train Member

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    FedEx freight was american freight. FedEx bought them out and renamed it fedex freight. Then after that they bought Watkins motor lines and merge that into fedex freight
     
  10. Sean_Memphis

    Sean_Memphis Light Load Member

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  11. Zooiey

    Zooiey Bobtail Member

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    Jan 9, 2020
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