FDX- Council 7 Message 10/6/14
#121
Ask your rep...WHY?
One other observation...effectively a large number of us have had our A-plan "frozen" due to the lack of a high five cap adjustment. So why would it be a good thing to let FDX freeze all the rest? Why even entertain such a concession given all the FDX profits that our MEC chairman loves to tout?
As others more adept on this forum have done, I've cranked some numbers on my own and it just doesn't add up. For now or the future FDX pilot.
Why such an attempt to move toward management on this issue when they've shown (apparently) no willingness to overall rebuild our pension to what it was in 2006?
As others more adept on this forum have done, I've cranked some numbers on my own and it just doesn't add up. For now or the future FDX pilot.
Why such an attempt to move toward management on this issue when they've shown (apparently) no willingness to overall rebuild our pension to what it was in 2006?
#122
Information gleaned from LEC postings, follow ups and phone calls. I can only surmise that either I might have one block missing, but I think it's more likely that roll call might have played a part.
But as I said before, it's up to each of us to directly contact our reps and ask them directly if they went along with the attempt to freeze our pension plan. I've contacted mine and thanked him...
But as I said before, it's up to each of us to directly contact our reps and ask them directly if they went along with the attempt to freeze our pension plan. I've contacted mine and thanked him...
One last question, what do you mean by "roll call" ?
#123
This "dance" you speak of - does it require a partner? The company stalled for 2 years and then dumped PiBS on us. Stall another year and throw out a pension freeze! Yeah, we are supposed to listen to their proposals but it obvious that this dance is a solo event. What is going to be their next request?
"Don't let your mad get ahead of your money"
Remember that one? Bob was spot on then and its still good advice today. If this is a play by the company to cause hate, discontent and general mayhem amongst us, well congratulations we are falling right in line with their plan.
Time to stop *****ing in public. Talk to your rep, let em know how you feel and then let em do their jobs. If the Negotiating Committee really does speak for us we have nothing to worry about. If it turns out they don't speak for us then we'll have a chance to let them know that too.
#124
Part Time Employee
Joined APC: Jul 2006
Position: Dispersing Green House Gasses on a Global Basis
Posts: 1,918
#125
Did the Negotiating Committee have to come to the MEC and ask, "They want us to accept a PBS scheme, should we explore it?"
No, they knew it was a non-starter. No need to ask the MEC.
But when The Company proposed freezing the "A"-plan, there was less certainty. The Negotiating Committee, composed exclusively of scheduling experts, had to seek the advice of the MEC. One would have hoped that the former FedEx R&I Committee Chairman, former ALPA National R&I Committee Chairman, and former ALPA President's Blue Ribbon Panel on Regulated Age Change member SS would have known the short answer to the question -- " HELL, NO!". Apparently he's so far up The Company's keester that even he was open to consider freezing your "A"- plan.
As was said above, thank the block reps with the basic knowledge and the fortitude to answer not only, " No!", but "Hell no!!!"
.
#126
i'm often called cynical but even i am surprised at the comments from some of the fdx pilots.
There is clearly risk in an a plan and a b plan. Each unique to itself. No one that i've seen has tried to claim that either is risk free. Our prior benefit crafters (r&i committee/nc) from years ago weren't dummies. They were bright people that did their homework before they came to the best compromise. And that's what our plan is - a compromise. Any retirement plan will be so. The risks have been considered and minimized. The rewards have been maximized based on negotiating leverage at the time. And that time included a strong mec and pilot force that were not at all passive. Before anyone decides they are smarter than those previous union negotiators they should be certain that something has demonstrably changed that justifies consideration. That would be a new law or a change in fdx's stability. From where i sit, the only reason to think about modifying our current balance between a & b plans is to decide where it needs to be improved. No other discussion - concessionary or even leaving as is - should be in our thought process.
There is clearly risk in an a plan and a b plan. Each unique to itself. No one that i've seen has tried to claim that either is risk free. Our prior benefit crafters (r&i committee/nc) from years ago weren't dummies. They were bright people that did their homework before they came to the best compromise. And that's what our plan is - a compromise. Any retirement plan will be so. The risks have been considered and minimized. The rewards have been maximized based on negotiating leverage at the time. And that time included a strong mec and pilot force that were not at all passive. Before anyone decides they are smarter than those previous union negotiators they should be certain that something has demonstrably changed that justifies consideration. That would be a new law or a change in fdx's stability. From where i sit, the only reason to think about modifying our current balance between a & b plans is to decide where it needs to be improved. No other discussion - concessionary or even leaving as is - should be in our thought process.
#127
The sky simply ain't falling, fellas
In Fact....
****************************************
FedEx: All Set for a Smooth Takeoff
By Riddhi Kharkia - 11 hours ago
About FDX
While, e-commerce has sabotaged the high revenue times of the brick-and-mortar retailers and left them with squeezed margins, it has done well for another industry.
I am talking about the supply chain and cargo industry, which has gained from this surge in e-commerce as it has expanded reach and brought affordability to many households.
One of the companies in this industry that has benefitted by this trend and has been on the high horse since the beginning of the year, is FedEx (FDX).
This betterment in operations and increasing confidence of investors is evidenced by the 30% surge in stock price over the last 12 months.
The company, founded in 1971 and based in Memphis, Tennessee, had a great earnings report recently and, going into the Christmas season, would appear to be a nice play for investors.
Solid quarter
FedEx, in its last reported quarter, posted an increase in both sales and operating margins in all its three segments -- Express, Ground, and Freight.
The company's Freight segment reported a notable growth with its revenue surging by 13% and income by 7%, as its average daily shipments in its "LTL," or "less-than-truckload" category, grew remarkably.
FedEx's largest division, its Express segment, which contributes about two-fifths of the company's total revenue, grew moderately by 4% both in terms of revenue and earnings.
On overall terms as well, the company put up a good show by reporting a reasonable increase of 6% y-o-y in revenue to $11.7 billion, which also beat Street estimate of $11.4 billion.
The Ground segment of the company has become an indispensable and high-growth area for the company in the past quarters as it has grown over 56% in the last four years.
The Ground segment accounts for half of the Express segment's revenue, but it generates a reasonably high operating margin.
In the last reported quarter, the Ground segment's revenue grew 8%, with its operating margins increasing to 18.4%.
Due to overall network expansion costs, the rise in the Ground segment's operating margin was somewhat neutralized, but the company expects this division to grow on a sustainable basis.
Undeniably, Ground division is one of the biggest opportunities for FedEx.
The Ground division's growth should help FedEx boost its companywide profit margin over time by driving a mix shift toward the most profitable part of its business.
Smart cost-cutting initiatives
Adept cost management is one of the things that is hard to efficiently execute but once done, it gives optimum results in terms of margin expansion.
The CEO of FedEx, Mr Fred Smith, had announced his intent to make all three of the above-mentioned divisions, operating at double-digit margins.
Well, FedEx has already embarked on a multiyear cost-cutting plan that is aimed to achieve $1.7 billion in profit improvement, in the Express division.
Besides shedding jobs and improving technology that will help the giant carrier in streamlining staff and operations, the top area to cut costs will be aircraft replacement.
As per reports, FedEx will retire 40 outdated MD-10s and replace them with a similar number of new Boeing 767s in the next four years.
Each replacement is expected to boost operating profit by $10 million, thanks to lower fuel and maintenance costs.
This fleet renewal program will lead to hundreds of millions of dollars in annual cost savings just a few years from now, helping return the Express division to double-digit margin territory.
E-commerce is booming
At the onset, I mentioned about the phenomenal growth in e-commerce that has lent strength to FedEx's operations.
According to a survey by Forrester Research, e-commerce is estimated to grow from $263 billion in 2013 to $414 billion in 2018 in the U.S. alone, which interestingly represents just 11% of the total U.S. retail sales thereby, providing many lucrative opportunities in the future.
Certain analysts have expressed scepticism about the fact that growing e-commerce chains might soon start an in-house supply chain mechanism, with a view to cut costs and ensure quality.
In my opinion though, this is a far-fetched notion because most of the growing e-commerce chains are facing intense competition and industry saturation.
In such a case, it would be prudent for the companies to invest in initiatives that improve customer adoption and foster brand loyalty.
In a bid to develop their own package delivery system, these retailers would have to invest heavily in manpower and other infrastructure and this would not be a wise move, considering the high growth and intensely competitive phase, that is prevalent in the e-commerce industry.
Takeaway
By now, it is amply clear that this package delivery service giant has a reasonable number of opportunities in the future.
In addition to that, the stock is trading at a forward multiple of 14.77 and has a PEG ratio of around 1.41, both favourable when compared to the industry average.
As such, FedEx scores high on being the ideal candidate for your portfolio.
In Fact....
****************************************
FedEx: All Set for a Smooth Takeoff
By Riddhi Kharkia - 11 hours ago
About FDX
While, e-commerce has sabotaged the high revenue times of the brick-and-mortar retailers and left them with squeezed margins, it has done well for another industry.
I am talking about the supply chain and cargo industry, which has gained from this surge in e-commerce as it has expanded reach and brought affordability to many households.
One of the companies in this industry that has benefitted by this trend and has been on the high horse since the beginning of the year, is FedEx (FDX).
This betterment in operations and increasing confidence of investors is evidenced by the 30% surge in stock price over the last 12 months.
The company, founded in 1971 and based in Memphis, Tennessee, had a great earnings report recently and, going into the Christmas season, would appear to be a nice play for investors.
Solid quarter
FedEx, in its last reported quarter, posted an increase in both sales and operating margins in all its three segments -- Express, Ground, and Freight.
The company's Freight segment reported a notable growth with its revenue surging by 13% and income by 7%, as its average daily shipments in its "LTL," or "less-than-truckload" category, grew remarkably.
FedEx's largest division, its Express segment, which contributes about two-fifths of the company's total revenue, grew moderately by 4% both in terms of revenue and earnings.
On overall terms as well, the company put up a good show by reporting a reasonable increase of 6% y-o-y in revenue to $11.7 billion, which also beat Street estimate of $11.4 billion.
The Ground segment of the company has become an indispensable and high-growth area for the company in the past quarters as it has grown over 56% in the last four years.
The Ground segment accounts for half of the Express segment's revenue, but it generates a reasonably high operating margin.
In the last reported quarter, the Ground segment's revenue grew 8%, with its operating margins increasing to 18.4%.
Due to overall network expansion costs, the rise in the Ground segment's operating margin was somewhat neutralized, but the company expects this division to grow on a sustainable basis.
Undeniably, Ground division is one of the biggest opportunities for FedEx.
The Ground division's growth should help FedEx boost its companywide profit margin over time by driving a mix shift toward the most profitable part of its business.
Smart cost-cutting initiatives
Adept cost management is one of the things that is hard to efficiently execute but once done, it gives optimum results in terms of margin expansion.
The CEO of FedEx, Mr Fred Smith, had announced his intent to make all three of the above-mentioned divisions, operating at double-digit margins.
Well, FedEx has already embarked on a multiyear cost-cutting plan that is aimed to achieve $1.7 billion in profit improvement, in the Express division.
Besides shedding jobs and improving technology that will help the giant carrier in streamlining staff and operations, the top area to cut costs will be aircraft replacement.
As per reports, FedEx will retire 40 outdated MD-10s and replace them with a similar number of new Boeing 767s in the next four years.
Each replacement is expected to boost operating profit by $10 million, thanks to lower fuel and maintenance costs.
This fleet renewal program will lead to hundreds of millions of dollars in annual cost savings just a few years from now, helping return the Express division to double-digit margin territory.
E-commerce is booming
At the onset, I mentioned about the phenomenal growth in e-commerce that has lent strength to FedEx's operations.
According to a survey by Forrester Research, e-commerce is estimated to grow from $263 billion in 2013 to $414 billion in 2018 in the U.S. alone, which interestingly represents just 11% of the total U.S. retail sales thereby, providing many lucrative opportunities in the future.
Certain analysts have expressed scepticism about the fact that growing e-commerce chains might soon start an in-house supply chain mechanism, with a view to cut costs and ensure quality.
In my opinion though, this is a far-fetched notion because most of the growing e-commerce chains are facing intense competition and industry saturation.
In such a case, it would be prudent for the companies to invest in initiatives that improve customer adoption and foster brand loyalty.
In a bid to develop their own package delivery system, these retailers would have to invest heavily in manpower and other infrastructure and this would not be a wise move, considering the high growth and intensely competitive phase, that is prevalent in the e-commerce industry.
Takeaway
By now, it is amply clear that this package delivery service giant has a reasonable number of opportunities in the future.
In addition to that, the stock is trading at a forward multiple of 14.77 and has a PEG ratio of around 1.41, both favourable when compared to the industry average.
As such, FedEx scores high on being the ideal candidate for your portfolio.
#128
Gets Weekends Off
Joined APC: Feb 2011
Position: Bus driver
Posts: 322
It sounds like it was the company that proposed the A plan freeze, not our negotiating chair. It sounds like we listened and discussed it. It sounds like we have dismissed the idea of a freeze. So what's the problem, we're in contract talks.
#129
Part Time Employee
Joined APC: Jul 2006
Position: Dispersing Green House Gasses on a Global Basis
Posts: 1,918
The fact that we discussed it vice summarily dismissing it means it will keep rearing its ugly head from the company side just like PIBS!
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