FedEx Changes Deadhead pay and FSC

guest · Aug 21, 2006

I was at the home office today and was told that FedEx will be paying us after 50 miles of Dead head now from the delivery to their next Express center. Once you check in any dead head to the pick up will be also payed after 50 miles. The FSC will be paid on top of the Deadhead pay.

Ask your CC about if you want to know more.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

targuard86 · Aug 21, 2006

Here's What i've been told.......

Customer rate increase

toll assistance for standard tariff customers

FSC on all shipments (no matter if they are discounted tarrif or not) This should bring all fuel cost to $1.20 per gallon.

FSC on all authorized miles, including DH to p/u and DH to layover.

deadhead pay to begin after 50 miles as oposed to 100 miles.

simon says · Aug 21, 2006

Sounds better than my deal...Perhaps I should move? Don't like to sit as solo; have this nagging feeling they have the freight now (?) but what happens when it dies off next Feb.?

greg334 · Aug 21, 2006

Yep I wonder... Sounds good, so does all the other things discussed at the truck driver appreiciation day here in Detroit - the only problem is that the food does not set right with me and now I really don't care about anything. No more detroiter for me.

Oh I would like to see a change with the backhaul program, instead of 2 weeks, one week sounds better to me.

tec1959 · Aug 21, 2006

Hi just wondering If now FedExCC has more loads than trucks with these new changes????? It sounds good either way...

guest · Aug 22, 2006

I will tell you more tomorrow. I was told today .20 a mile for the FSC on all loaded miles and .20 FSC on all okayed deadhead miles.
If that is the Case, that is less that we are getting now. I will keep you posted. We are going to the home Office in the morning.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

guest · Aug 22, 2006

Just went to our website and it explains everything in the new
package....now, maybe the gossip and guessing will stop...oh yeah, that's right....it will have to be read and understood.

terryandrene · Aug 22, 2006

To clarify Dave's comment.

The example given for FedEx Custom Criticals FSC is 20 cents to a straight truck IF the price of Diesel is $3.00. A van would be 12 cents fsc at $3.00 fuel

It is true that the total FSC paid may be less, overall, for some trucks, Sprinters, in particular, but it seems a fair application of a surcharge that brings the cost of fuel to an effective price of no more than $1.20 gallon for every truck in the fleet; there will always be slight variences. The fair part of the new procedure is we'll get the surcharge on authorized miles of all runs, not just the full tariff runs as is now the case. Free deadhead to pickup or layover has been reduced from 100 miles to 50 miles, for DH pay. FSC will be paid on all DH miles to pickup and all DH miles to authorized layover.

guest · Aug 22, 2006

I can understand what your saying Terry. I just don't like it.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

C5BILL · Aug 22, 2006

Received my info in the mail today. At first glance, I think I prefer the old FSC system based upon percentages. Time will tell!

Discounted loads may pay a 'little' more, full tariff loads will pay a 'lot' less. Am I wrong in my analysis?

guest · Aug 22, 2006

Yea, I did the math on the old and the new. We would lose $646.00 every week on the new fuel surcharge way. and that is for just one truck.

The new way pays you over 50% less than you are getting now.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

davekc · Aug 22, 2006

That is a major hit in pay. Do you recover some of it through the deadhead that is paid after 50 verses after 100.
Sounds the same way Conway started the flat FSC prior to their sale.
It kinda sounds like forced repositioning for coverage. What I mean is, say you are in northern CA and they tell you to go to Oregon when you know there is freight out of Oakland. Do you lose if you go to Oakland?

Davekc
owner
22 years
PantherII
EO moderator

C5BILL · Aug 22, 2006

Is it mandatory that we accept the contract addendum?

simon says · Aug 22, 2006

I get the .20 BNS miles for DH after the 1st 50 miles myself. That should equal, at 9 mpg, fuel costing $1.20. FSC varies from .15 to .36? based on the customer. That sounds like what the FECC rate used to be. The main difference for me is that my base rate is much lower than yours.
I can understand why they made the change, and I would guess it has something to do with being more competitive with lower rate carriers. Some bean counter figured it out and found if they made the FSC & bonus miles constant, they could pay you deadhead after less miles. By keeping the FSC constant, it probably reduces the load on the dispatchers and/or computer programming. My dispatchers don't know what the FSC is, until they key in the load.

I would really like to know, can a solo 24' running a real D unit do well without a lot of sitting around. Does FECC really have more freight now? I live in MI. and running Canada is a no-brainer for me...

guest · Aug 22, 2006

No there not changeing what there going to charge the customer there going to still charge the customer a percentage of what the load pays and then put it all in a big kitty and use it to pay us this way. I feel we should get 100% FSC they charge the customer because we are paying the fuel not FedEx.

Everyone knows I love working for FedEx but this really make me want to leave because I feel like there taking things away from us and we don't have a choice. I have talked to a lot of Folks today over this and a lot have said they will look to go to another company if this goes on.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

guest · Aug 22, 2006

>Is it mandatory that we accept the contract addendum?

That something you have to get leagal help on. I don't know

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

greg334 · Aug 22, 2006

Now I am a little upset. Forget what I posted earlier.

The way it was presented yesterday to our little group;

->They lowered the DH miles from 100 to 50

->They now give FSC to reduce the cost of fuel from $x to $1.20 a gallon

->This FSC is given to authorised layovers and pickups

->This FSC starts from the moment you start your truck to go to the authorised layover or to the pickup

->Everything else is the same

->Absolutely nothing was mentioned outside of that

If I knew that there was a change in the FSC for the run, I would have said something than. I was under the impression (and so were others) that we would still receive the FSC charged to the customer.

Not good!

Big Redd · Aug 22, 2006

When the new policy is first presented it sounds like a good deal. But once you start to run the numbers you can see where you really stand.Not really any better off..

NoProblem · Aug 22, 2006

Dave,

I feel we should get 100% FSC they charge the customer because we are paying the fuel not FedEx.

I'm not trying to be a smart arse, I am merely dropping my .02 into the mush pot.......................

If my guess is correct, some customers will not only refuse to pay any fsc, but some of those same customers will only pay the lowest possible rate.

In both cases, if Fedex refuses the load for FSC, there will be 2 dozen other carriers that are not only willing, but able to jump all over that same load for a discount rate.

This is reality.

So my question is this: If you were to get 100% of FSC all the time; would you take (not refuse) 100% of zero - along with 100% of a fair fsc?

Just curious and thanks in advance.

nightcreacher · Aug 22, 2006

guys good luck,i told recruiting this was just smoke screens
i took my last 17 loads,under new pay system,and the tractor system is a little different than the others,that i was getting 30cpm less on every load,also,only get the fsc on m t miles if you go to the authorized layover,and you already know there will be no dead head if you dont do what they say
i told them id give them 30 days,im not leaving fed ex,but hauling cars for pass port is in the future
nightcreacher
ooida 263839
E6613
fed ex cc since 1984