Originally Posted by
Albief15
One point...if margins on domestic service are less than 7%, how much do we want to "take back" from the optimizer? I'm not disputing that FDX is still a profitable enterprise, but trying to extract gains from our lowest margin area is going to be tough. Raise the cost there too much and we'll see more pressure to truck the goods. Granted, FDX Ground has its own issues, but even with Diesel at 4.80 the trucks are not our friends.
International? Yeah...we can squeeze there. There's room. But domestic yields don't invite a huge "unwinding" of the optimizer. Not saying we can't do some stuff to allieviate some issues, but protecting the goose is still important.
Not arguing, and when they develop the star track transporter we are all screwed. But when we make things more efficient for the company that makes furloughs (or blg reductions) more likely in hard times and we hire less dudes in good times. If they want efficiencies make them pay instead of giving them up for free as we did in the last contract.