Posted on 09/22/2021 8:40:04 PM PDT by lasereye
Do a read through of the disappointing earnings report out of FedEx on Tuesday night and you get the sense non-farm payrolls reports for the rest of 2021 may surprise economists to the downside.
The problem (one that may be getting worse, per FedEx)? Finding humans to accept jobs in a very tight labor market even at higher rates than what the job paid months ago.
"The impact of constrained labor markets remains the biggest issue facing our business as with many other companies around the world and was the key driver of our lower than expected results in the first quarter," FedEx COO Raj Subramaniam told analysts on an earnings call.
FedEx said its quarterly results were drilled by $450 million due to labor shortages alone, notably at its ground segment. The company estimated a shocking 600,000 packages across the FedEx network are being rerouted.
Those processing bottlenecks stand to wreak havoc on the holiday season if FedEx is unable to address the worker shortage, which increasingly appears unlikely.
To illustrate the point on its labor challenges, FedEx shared the current state of play at one of its facilities in Portland, Oregon.
Explained Subramaniam, "Our Portland Oregon hub is running with approximately 65% of the staffing needed to handle its normal volume. This staffing shortage has a pronounced impact on the operations, which results in our teams diverting 25% of the volume that would normally flow through this hub because it simply cannot be processed efficiently to meet our service standards. And in this case the volume that diverted must be rerouted and process, which drives inefficiencies in our operations and in turn higher costs. These inefficiencies included adding incremental linehaul and delivery routes, meaning more miles driven and higher use of third-party transportation to bypass Portland entirely."
(Excerpt) Read more at finance.yahoo.com ...
More than that, I’ve gone Gault. I refuse to pay taxes to Josef Stolen’s illegitimate government.
Well, at least you haven’t gone Galt, yet. :-)
The Christian School position could be a two way blessing.
And, you could always donate your salary back to the school. A TRIPLE blessing.
I took a retail job a few years ago. Most of the workers there were part-timers:
Young people living with their parents
Adults working two or three jobs
Retirees working for something to do
Moms working for extra cash
A combination of the above
They probably didn't have to return to work.
Still, around here, the stores have plenty of help, and the jobs fill quickly. Based on what I see, it's hard to believe there's a shortage.
No Bills?
Throw in an eviction moratorium, which many low end people took to be "FREE RENT" and their bills are low enough to make not working a viable option.
These business leaders, that are almost ALL in the tank for Biden and the Dims, are getting what they deserve. I hope they all go out of business. People will survive, new companies that don’t cow to the government will arise.
Exactly.
I ordered something from India and received an email from the seller that there “has been a glitch with FedEx but it should be resolved soon”. That was a week ago and the “glitch” hasn’t been resolved. Crap. .
I avoid having items delivered by FedEx. They leave packages out in the street.
I’ve had things arrive a week to ten days after the estimated delivery. Usually, tracking says the package is within the state. Expected delivery tomorrow. Then it takes another 5-7 days to arrive. Unacceptable.
If there are kids in the family, they are getting a monthly payment of child tax credits. That may cause some lower paid spouces to stay home, between that and not having to pay for childcare.
He may be taking a mandatory DOT break.
Is this why they’re tossing electronics outside my fence in the puddles of a muddy lane, during rain storms?
Nope, that has nothing to do with it. Bottom line, many jobs where Fedex needs help were second or even third jobs for many people. Now that our commie infested government has destroyed the entertainment industry, the restaurant industry, retail shopping and on and on people have decided they don't need the extra money. If you are forced to stay at home it's surprising how much less money you need.
Bottom line: Many many Americans have been living a lifestyle of excess. Not that it was bad at all. They wanted stuff so they worked a second job or extra overtime hours or whatever because they wanted stuff. Well our commie government ruined the fun for everybody and Americans are now living a MUCH more frugal lifestyle. Additionally people that lost jobs during the lock downs have found another way to earn a living. Gig jobs are everywhere and there has never been an easier time to be self employed. Why work at the Target electronics counter when you can work for yourself? Why put up with employer mask mandates and vaccine mandates when you can work for yourself and make your own rules.
Fedex better start thinking of how they are going to stay afloat with far less employees and far higher wage requirements. These big corporations signed on to fascism now they can live with it and it's going to be a LOT harder in the US because there are many other ways to earn a living.
The Help Wanted signs are not going away anytime soon.
“This isn’t due to welfare.”
No it isn’t, but they’ll still be saying it in six months.
Yes, that’s unacceptable.
Have you had any orders from overseas or is that what you were referring to?
Thanks for letting us know. I rarely get packages delivered by FedEx for some reason so was not aware of their problems.
Job "ghosting" is a thing with the latest generation. Apparently the latest batch of 18-25 year olds will get a job, and if they don't like it, they just no call/no show... forever. No notice. No warning. No emails or texts. They just stop coming to work.
Bingo!
Note to FedEx: Lose the muzzles and make it clear you’ll never mandate a vaxx.
Problem solved.
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