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FEDEX DELIVERY FAILURE RATE RISES DRAMATICALLY TO ONE IN EVERY NINE SHIPMENTS

MEMPHIS, Tenn., Dec. 15 /PRNewswire/ -- According to published news reports, an independent audit has revealed that the pilot labor dispute at Federal Express is creating significant service problems. Planes are late, package sorts are significantly delayed and customers are being disappointed because 11 percent of one- and two-day shipments now are arriving late.

"Instead of making the smart business decision to come to an agreement with FedEx pilots on a fair contract, our management has chosen to allow operations to deteriorate to the point where customer service is significantly impaired," said Captain Joe DePete, chairman of the FedEx unit of the Air Line Pilots Association. Knight-Ridder and the Journal of Commerce both verified in December 15 stories that FedEx's fabled reliability has taken a hit in recent weeks, according to a computer audit of 11,000 shipments.

The Dec. 15 edition of the Journal of Commerce reported that, "the audit, performed by AMFS Inc., (Air Freight Management Services) a Portland, Ore., transportation consultant, shows that for the seven days that ended Dec. 12, the failure to meet delivery deadline for overnight and two-day deliveries increased to 11% ... It had been in the 3.5% range the first 14 days of November, when the monitored customers sent 7,000 shipments a week."

"The report correctly recognizes that if this significant failure rate does not improve very soon, previously loyal customers of FedEx could be forced to look at competitors, especially after the holidays when domestic lift is more available," he added.

Mike Erickson, general manager for AFMS was quoted as saying, "I've never seen FedEx go this high on service failure. It's pretty dramatic."

"I can not imagine why a company that prides itself on loyalty and reliability continues to subject the very consumers it depends on to this unnecessary labor dispute," said DePete. "Pilots are willing to end this dispute right now by submitting the matter to a mutually-acceptable third party. Loyalty and reliability flow both ways. If the company says yes to a neutral arbitrator, the pilots will go back to giving FedEx customers their traditional 150 percent effort."
 -0- 12/15/95


/CONTACT: Will Johnson of the Air Line Pilots Association, 901-685-2751/

CO: Air Line Pilots Association; FedEx ST: District of Columbia, Tennessee IN: AIR SU: LBR

ER-DC -- DCF031 -- 3984 12/15/95 18:13 EST
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Publication:PR Newswire
Date:Dec 15, 1995
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