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

Comments are closed.