V1andGo,
WOW. Are you sure you aren't on FedEx's management negotiation team? First of all, if FedEx is having such a hard time being competitive in todays market, explain the following. Our CEO makes 10x more in compensation than the CEO at UPS. Our stock has more than doubled over the past 5 years, yet our company insists on instituting a dividend to our investors. Our negotiating committee knows exactly what each propsal will cost our company and how much they can afford and still be competitive. But FedEx has enjoyed record profits over the past five years, and you make it sound like we should take a pay cut.
The belief that Trucks will dominate the Domestic market. Yes the majority of freight moved in the US domestically is done by truck. But FedEx earns its money on "priority" freight. In todays market, time is money. To be competitive companies/corporations need "it" and they need "it" yesterday. Trucking it for 3 days is not an option for them.
The advent of e-mail. Does electronic documents take from our business? Probably yes. But let me ask you this question, how many things did you purchase "on-line" in 1999 compared to 2004? And multiply that by 300 million people in the US. And in the future, do you see more companies conducting operations on-line and using UPS and FedEx as their distribution networks? No need to answer, it was a rhetorical question.
Finally China. We have not even scratched the market in China or India. We are talking about a "domestic" network five times larger than the US.
There will always be competition, but that is not an excuse to pay employees minimal wages. Today, cost cuts are always associated with wages. That is the easy way, not the most effective way. Your whole arguement is based on that fact. The only way UPS and FedEX can be effective is cutting cost and more specifically employee wages. That is an archaic way of thinking. WE ARE NOT A COST, WE ARE A MEANS OF PROFIT.
WOW. Are you sure you aren't on FedEx's management negotiation team? First of all, if FedEx is having such a hard time being competitive in todays market, explain the following. Our CEO makes 10x more in compensation than the CEO at UPS. Our stock has more than doubled over the past 5 years, yet our company insists on instituting a dividend to our investors. Our negotiating committee knows exactly what each propsal will cost our company and how much they can afford and still be competitive. But FedEx has enjoyed record profits over the past five years, and you make it sound like we should take a pay cut.
The belief that Trucks will dominate the Domestic market. Yes the majority of freight moved in the US domestically is done by truck. But FedEx earns its money on "priority" freight. In todays market, time is money. To be competitive companies/corporations need "it" and they need "it" yesterday. Trucking it for 3 days is not an option for them.
The advent of e-mail. Does electronic documents take from our business? Probably yes. But let me ask you this question, how many things did you purchase "on-line" in 1999 compared to 2004? And multiply that by 300 million people in the US. And in the future, do you see more companies conducting operations on-line and using UPS and FedEx as their distribution networks? No need to answer, it was a rhetorical question.
Finally China. We have not even scratched the market in China or India. We are talking about a "domestic" network five times larger than the US.
There will always be competition, but that is not an excuse to pay employees minimal wages. Today, cost cuts are always associated with wages. That is the easy way, not the most effective way. Your whole arguement is based on that fact. The only way UPS and FedEX can be effective is cutting cost and more specifically employee wages. That is an archaic way of thinking. WE ARE NOT A COST, WE ARE A MEANS OF PROFIT.
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