Hypothetically...
#1
Gets Weekends Off
Thread Starter
Joined APC: Sep 2006
Posts: 329
Hypothetically...
Let's pretend you own a trucking firm with 600 employees. Half are truckers, half are clerical/sales/warehouse/maintenance personnel. Times get hard and volume goes down by a third. I only need 200 truckers, but still need almost all the other people to run the company.
I can get rid of 100 truck drivers, or I could keep all of them and drop their pay by a third to keep their relative cost to the company the same. I could cut the pay similarly for the other employees, but I need all of them to continue to run the company. They are a fixed cost, the truckers are a variable cost.
Everyone calling for all FedEx employees to share a 20-30% pay cut (shared sacrifice) don't seem to get the above. Volume is WAAAY down. They do not need all of us at present. The options allowed by the contract are to cut hours or F-word. Regardless of your interpretation of the 'implied' language of the contract, they are going to pay relative to volume and manning. I hate to say it, but like so many previous examples, if it ain't spelled out, we lose. Heck, we lose on occasion when it is spelled out.
I'm not looking forward to the paycheck hickeys that are coming, but I've still got a paycheck, medical benefits for me and my family, retirement accruing and a company that seems to be willing to keep me around rather than putting me on the street. Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. I'll limbo really, really low to keep us all on property.
I can get rid of 100 truck drivers, or I could keep all of them and drop their pay by a third to keep their relative cost to the company the same. I could cut the pay similarly for the other employees, but I need all of them to continue to run the company. They are a fixed cost, the truckers are a variable cost.
Everyone calling for all FedEx employees to share a 20-30% pay cut (shared sacrifice) don't seem to get the above. Volume is WAAAY down. They do not need all of us at present. The options allowed by the contract are to cut hours or F-word. Regardless of your interpretation of the 'implied' language of the contract, they are going to pay relative to volume and manning. I hate to say it, but like so many previous examples, if it ain't spelled out, we lose. Heck, we lose on occasion when it is spelled out.
I'm not looking forward to the paycheck hickeys that are coming, but I've still got a paycheck, medical benefits for me and my family, retirement accruing and a company that seems to be willing to keep me around rather than putting me on the street. Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. I'll limbo really, really low to keep us all on property.
Last edited by av8rmike; 01-06-2009 at 07:06 PM. Reason: spelling
#2
Gets Weekends Off
Joined APC: Aug 2006
Posts: 356
I only need 200 truckers, but still need almost all the other people to run the company.
Less truck drivers equals less truck loaders, less truck fuelers, less truck painters, less truck advertisers, less truck marketers, less truck cleaners. Remember.....they are parking "trucks" in the desert or retiring them for good. Struggling to follow your logic.
They are a fixed cost, the truckers are a variable cost.
Labor is a variable cost. Hourly, salary, part-time or full-time. Unless of course you have a contract that provides you with some additional protections(sound familiar?). Rent and depreciation are closer to fixed costs than labor.
Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. .
Less truck drivers equals less truck loaders, less truck fuelers, less truck painters, less truck advertisers, less truck marketers, less truck cleaners. Remember.....they are parking "trucks" in the desert or retiring them for good. Struggling to follow your logic.
They are a fixed cost, the truckers are a variable cost.
Labor is a variable cost. Hourly, salary, part-time or full-time. Unless of course you have a contract that provides you with some additional protections(sound familiar?). Rent and depreciation are closer to fixed costs than labor.
Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. .
#3
Let's pretend you own a trucking firm with 600 employees. Half are truckers, half are clerical/sales/warehouse/maintenance personnel. Times get hard and volume goes down by a third. I only need 200 truckers, but still need almost all the other people to run the company.
I can get rid of 100 truck drivers, or I could keep all of them and drop their pay by a third to keep their relative cost to the company the same. I could cut the pay similarly for the other employees, but I need all of them to continue to run the company. They are a fixed cost, the truckers are a variable cost.
Everyone calling for all FedEx employees to share a 20-30% pay cut (shared sacrifice) don't seem to get the above. Volume is WAAAY down. They do not need all of us at present. The options allowed by the contract are to cut hours or F-word. Regardless of your interpretation of the 'implied' language of the contract, they are going to pay relative to volume and manning. I hate to say it, but like so many previous examples, if it ain't spelled out, we lose. Heck, we lose on occasion when it is spelled out.
I'm not looking forward to the paycheck hickeys that are coming, but I've still got a paycheck, medical benefits for me and my family, retirement accruing and a company that seems to be willing to keep me around rather than putting me on the street. Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. I'll limbo really, really low to keep us all on property.
I can get rid of 100 truck drivers, or I could keep all of them and drop their pay by a third to keep their relative cost to the company the same. I could cut the pay similarly for the other employees, but I need all of them to continue to run the company. They are a fixed cost, the truckers are a variable cost.
Everyone calling for all FedEx employees to share a 20-30% pay cut (shared sacrifice) don't seem to get the above. Volume is WAAAY down. They do not need all of us at present. The options allowed by the contract are to cut hours or F-word. Regardless of your interpretation of the 'implied' language of the contract, they are going to pay relative to volume and manning. I hate to say it, but like so many previous examples, if it ain't spelled out, we lose. Heck, we lose on occasion when it is spelled out.
I'm not looking forward to the paycheck hickeys that are coming, but I've still got a paycheck, medical benefits for me and my family, retirement accruing and a company that seems to be willing to keep me around rather than putting me on the street. Talk about increasing costs to the company (APU use,etc) and negatively impacting reliability is moronic and self-destructive. I'll limbo really, really low to keep us all on property.
#6
Volume might be down, but you still need to make all the stops. Your example would be good if all the trucks were going in the same direction to the same destinations. In our case, we still need the stop in Cedar Rapids, as well as in Tampa - and the same truck can't make both stops - or in our case, the jets can't make both stops and still provide our absolutely positively service. We've already 'tweaked' the schedules with the optimizer causing the shorter and lighter loads to be covered by fewer jets and fewer crews. The trouble is - especially internationally - one hiccup can cost millions. And if you don't think we're having hiccups - take a look at the number of MD-11 standby crews at our international locations.
#7
Gets Weekends Off
Joined APC: Aug 2006
Posts: 356
I must have mis-read the Union's message stating that reducing the BLG's as they propose is violating the contract. No need for you and I to go to Kirby. I would expect OUR Union to file the grievance for us if they implement the cuts as proposed. You know.....the ones you say you would be willing to take without a fight.
#8
Volume might be down, but you still need to make all the stops. Your example would be good if all the trucks were going in the same direction to the same destinations. In our case, we still need the stop in Cedar Rapids, as well as in Tampa - and the same truck can't make both stops - or in our case, the jets can't make both stops and still provide our absolutely positively service. We've already 'tweaked' the schedules with the optimizer causing the shorter and lighter loads to be covered by fewer jets and fewer crews. The trouble is - especially internationally - one hiccup can cost millions. And if you don't think we're having hiccups - take a look at the number of MD-11 standby crews at our international locations.
#9
I think what he is referring to is the vagueness of our contract. The company is picking and choosing how to employ the blg reductions instead of doing it across the board. If the DC-10 goes to 48 and the MD11 stays close to 68(or more in ANC), then how is this fair.
I guess one could say that in the looking glass we should bid what we want, but a top Fortune 500 company, one would think, would have thought of contingencies for aircraft transitions and lack of productivity as they park and replace planes. Some PHD in the company has had to made some calculation along those lines on how to do this efficiently...
Anyway, I am back to my light switch...I replaced the old one with a dimmer...it's twisty!
I guess one could say that in the looking glass we should bid what we want, but a top Fortune 500 company, one would think, would have thought of contingencies for aircraft transitions and lack of productivity as they park and replace planes. Some PHD in the company has had to made some calculation along those lines on how to do this efficiently...
Anyway, I am back to my light switch...I replaced the old one with a dimmer...it's twisty!
#10
Gets Weekends Off
Thread Starter
Joined APC: Sep 2006
Posts: 329
I must have mis-read the Union's message stating that reducing the BLG's as they propose is violating the contract. No need for you and I to go to Kirby. I would expect OUR Union to file the grievance for us if they implement the cuts as proposed. You know.....the ones you say you would be willing to take without a fight.
One other thought, bad in the good ol' days, when the 727 BLG was 72 and the MD-11 was 75, who complained? Unequal, but ok. Going downhill, unequal isn't ok? I WISH our contract had unambiguous language in this section saying below 68 hours, all tracks will match, but it doesn't.
Last edited by av8rmike; 01-06-2009 at 07:49 PM. Reason: added thought