FedEx, UPS Find Formula for Delivering Seven Days a Week: Discount Sunday Drivers

UPS and FedEx will begin routine Sunday deliveries beginning in January, and the companies plan to use lower paid drivers to save money on the expensive, mostly residential, deliveries, according to a story in the Wall Street Journal:

Sundays will soon look a lot like weekdays at FedEx Corp. and United Parcel Service Inc., as delivery drivers fan out to neighborhoods to deliver online orders to doorsteps.

But there will be a key difference: Drivers working that day will be paid at a much lower rate than those who drive during the week.

FedEx and UPS, with some assistance from the U.S. Postal Service, will rely mostly on this lower-paid army of delivery drivers as the companies work to turn a profit. The bulk of deliveries will be residential, which are more costly than deliveries to businesses. Both companies recently disclosed the new seven-day-a-week schedule, which starts in January after the busy holiday season.

When the Postal Service in 2013 began Sunday delivery for one customer—Amazon—it created a new class of worker with the title of City Carrier Assistant. This temporary position has minimal benefits and pays $22.53 an hour, less than half the $47.21 hourly wage for full-time mail carriers covered under a labor contract.

“It’s low pay, very little benefits and they’ve got a pretty high turnover,” said Fredric Rolando, president of the National Association of Letter Carriers, a union that represents more than 300,000 letter carriers.

Source: FedEx, UPS Find Formula for Delivering Seven Days a Week: Discount Sunday Drivers – WSJ

  • peter jackson

    $22.53 per hour is a bloody good wage… $47 per hour is astronomical.

    If they were in the UK they’d be getting $12 per hour if they were lucky

  • Amazing_Kreskin

    These numbers are skewed to include total benefits. Employer paid health insurance is included in this figure as well, and does not include the employees share that they must pay. A newly hired carrier makes about $17.00 per hour.
    After 12 years of service the top pay is about $31.00 per hour.

  • QuestionU

    You are correct.

  • Dominick Dolce

    I worked as a CCA for a few months. It was a Sh*t show. The post office wasn’t built for delivering packages and it really shows

  • Steve

    Um, on what planet are we letter carriers making $47/hour unless u are stating what the rate would be to have us work on Sundays at 150% pay?

  • JY

    $47 per hour? Someone can’t read pay scales. Even with the Sunday premium, it’s still nowhere near that rate at top pay.

  • Jd

    Just to clear the air I am a city carrier and we do get paid even 20 bucks a hour for working on sundays we get our normal pay. This info about usps cca’s is incorrect.

  • Tee

    Are you kidding me im rca and dont make anything near $20 an hour and no benefits

  • Charles Carr

    I believe they are basing it on hourly salary and benefits together…

  • postalnews

    Correct. The number reflects the total cost per hour for a full time city carrier. It includes Health Benefits, Social Security, pension and TSP contributions, etc. The $22 for CCAs is the same total cost per hour number.

  • postalnews

    Skewed? How is it “skewed” to report the actual total cost of a work hour? It may not show up in your paycheck, but the USPS has to pay that cost, in real money, every week.

    The employee’s share of health insurance premiums is obviously not a component of the USPS total cost- just the employer share. You are under no obligation to have health insurance, or to buy health insurance from FEHB. The USPS IS obligated, however, to pay the lion’s share of FEHB insurance that employees DO purchase.

  • Lee

    Skewed is incorrect. Lies would be correct. Your article is spewing falsehoods about carrier wages and misleading the reader.

  • Archie Daneker

    No union employee makes $47.21 an hour, are you on drugs?

  • postalnews

    Read my previous comments. It isn’t your salary-it’s the total cost of salaries and benefits-what the USPS actually pays out for each hour worked.

  • postalnews

    No, it’s accurate. The only problem is that the reporter referred to “wages” when the numbers actually are total salaries and benefits.