Earnings - Wages - Hours

I noticed that someone hit this page looking for "fedex home delivery contractor wages" and I thought I'd post here an example of what they consider a "good" route's earnings.

His route is somewhat urban so he can make more stops per mile thus gas expenses and truck wear and tear are less. As the case is supposed to be, as you start to get more experience and the route grows, you can handle more stops per day in a more condensed area. To leverage this they reduce your core zone part of the settlement (remember its TEMPORARY CORE ZONE and its being phased out). He's been handling the same average amount of stops per week since he started and his area hasn't been condensed and actually "stretches" a bit as they loose contractors. In reality, his total weekly settlement is going to come down but his expenses and total driving isn't. Anyway, One would think that you'd earn "MORE" the harder you work - right? NOPE. This is not the case. My belief is, if they see a contractor making gains, they will figure out a way to reduce their cost to where they want it anyway.

So rounded - His gross this year will probably be about 62K, his expenses, and he's been lucky on maintenance so far since the truck is new, will be around 21K (I expect this to go up during winter and next year) and net earnings before taxes almost 42K.

Consider that you are working 10-11 hours per day plus part of just about every monday to take care of maintenance issues. If you say its a 55 hour work week, he earns around $14-15 per hour.

I've posted a sheet here. I think I'm missing a couple of things in the expense column (claims, uniforms and a few other things that may already be taken out in the settlement) but these numbers are "close" to accurate and I'll update it a bit more when the finals are in at the end of the year and I do the "REAL" taxes.

All in all, this is the least amount he's made in the past 10 years.

He only took this route as something to do to gain some experince running a business and to be involved in the trucking/shipping industry. He believes that ground shipping in some format has to stay in the states - unlike the 2 different jobs that he's had in manufacturing, who's plants went overseas leaving workers, supervisory and middle management jobless. I think manycontractors are in a similar boat, taking this as a way to make ends meet until something better comes along - and they worry about what to do with the truck later.

Personally, I think the amount of responsibility that these guys take on for the amount of money they make is not worth it. I see the stress levels that he is under most of the time. The contract states continuity of service.

There are no paid vacation or sick days so he limits those and drives even when he's sick and besides finding a reliable relief driver is DIFFICULT at best. They then have to worry, will they get claims against them based on the temp? Will the temp get in an accident and jeapordize things for them in terms of insurance (3 strikes and they drop your coverage).

If the truck breaks down he has to scramble to get it working and a rental for the meantime.

A Wife's View

At the Troy and Gay blog that I mentioned on an earlier day, there is a post by a FHD contractor's wife that I find to be the perfect reply to a guy Leo - telling the other contractors who are posting complaints that they are basically idiots for complaining, that he's done his homework and cannot wait to start his new "business". With her permission, I'm re-posting it here because she covers many aspects with a great sense of humor.

Dear Leo Perez:
I'm the wife of a dedicated FedEx contractor who puts in 40 - 60 hours a week trying to make a paycheck from FedEx Home Delivery. He delivers 99.9% of his packages every week, but still can't make ends meet because FedEx Home Delivery sucks every penny they can out of his paycheck one way or another.

Let me offer you some words of wisdom. We thought we did all the research too; my husband rode on a route for several weeks, investigated the compensation plan, did the math, talked to drivers, thought he had it all covered, but that still wasn't enough. He read the contract over and over and it seemed to cover all the bases. In fact, it covered so many bases, they didn't leave a stone unturned. Those FedEx lawyers made that contract read so well, everything is to their advantage. They can change or alter anything they want, anytime they want. It's all up to interpretation...theirs.

My husband was just ecstatic when FedEx made him buy a truck for $30K. It turned out to be such a worthless piece of dog shit and so far this year, it has been in the shop more than it's been on the road. Of course, that wouldn't be because the truck isn't heavy duty enough to handle the job or anything!! Oh no. FedEx spec'd the truck in and said it would be perfect for this type of work. The funny part is, they're certainly not offering to pay any of the $1,000.00 a month we're spending on repairs!! Neither is Chevy. I could go on and on and on about that story. But wait...it gets better. Between the claims, repairs, gas prices, taxes, insurance, uniforms, truck payments and all other associated expenses, last year my husband made about as much money as a gas station attendant. Our accountant thinks we've lost our minds. But I'm sure you'll be able to put aside a good 10% of your pay so you have a retirement account someday. I'm sure FedEx will gladly match .50 cents on the dollar too. I hear the contractor pension is awesome. Why don't you research THAT?

Does the Core Zone they're offering you look good today? Well, mentally, try to hold onto that picture because soon, you can kiss it goodbye. Eventually, the core zone will disappear and then they'll change your route around on you so that your daily miles will go from 110 miles per day to about 230 and your stops will decrease by 20%. But I forgot...you completely understand how FedEx works so this is old news to you.

I'm sure you're also aware that contractors CAN get medical insurance if they pay astronomical premiums too. Or, they can hope that their spouse has really good insurance that covers chiropractic or medical care when they hurt their back... which probably happened when they were carrying that 120 lb. package up someone's icy staircase, which of course the owner's didn't bother to shovel or sand, they lost their balance, slipped, fell down the stairs and landed on their a*s *s in the snow. After digging around to find their glasses and scanner which had sunk a foot below the snow, they went back on their merry way delivering packages in 20 below weather hoping they didn't catch pneumonia because their clothes were soaking wet. I'm sure they also had a "back-up" driver on stand-by just waiting for a phone call telling them that they had work this week because they were bed-ridden and couldn't make it in. You know...you'll have those days when you're in the bathroom with a stomach bug so bad you wish you could rip your guts out...but you know you're tied to that FedEx contract,... and you know "the deliveries must get done". So you shake it off, take some Pepto and hope and pray to God you're near a McDonald's in a hour when Montezuma's revenge hits again. Yeah, my husband thinks it's great to be a contractor.

Trust me, in 6 months, you're going to be wishing you had a cubicle to go back to. While you're at it, why don't you get a supplemental driver for the holidays too?? That way you can put a second truck on and make some really GOOD money. I'm sure you've figured out how much extra money you can make on an additional driver and an additional route.....until that additional driver just doesn't show up for work one day because you're not paying him nearly enough, you can't find a replacement driver and you're stuck paying 2 truck payments, can't afford the insurance, have no savings account, they foreclose on your house, your wife leaves your sorry a* s* s* because you're broke and your kids have to go on welfare. Good luck with FedEx.

Posted by: The Wife on July 26, 2004 08:13 PM

Overnight Parking Liabilities and the LOGO

One of the contractors had his truck broken into and 5 packages were stolen. From what they have heard, he is going to be held responsible for the full cost of these packages since its thought that he wasn't assuring the safety them (possibly by going to sleep in his house instead of the van?) Thankfully, there weren't any super expensive items. Still, this is just another way FHD seems to have to push off costs to the contractors.

If a person is out until 7pm its not possible to return before 5pm when the terminal is closed to bring back anything that wasn't delivered. They don't want to keep anyone on staff to man the terminal, so the contractors have no choice.

Are they supposed to bring them in with them? Put them in a garage? I doubt homeowners insurance would cover the packages either. Its outrageous.

And, this is just another reason why I think the "permanent" logos that they insist you put on "YOUR" vehicle are a bad idea. Look everyone! There may be good stuff in here!! Break into it! And, come to think of it. Look Everyone, a FedEx Home Delivery Billboard right in your neighboorhood = Free advertising as well.

I think all contractors should decline the logos and ask for the removable plackards.