Contractor to ISP conversion

Discussion in 'FedEx Discussions' started by Scott Heydon, Aug 30, 2014.

  1. scrappy203

    scrappy203 New Member

    With the recent court ruling, it is a near certainty CA, OR, and WA will convert to the ISP model. It would be helpful to hear from business owners that have already gone through these conversions in other states. Here a few questions it would be good to have information on :
    - How did Fedex handle the smaller contractors (<3 PSA's)? Was there any payout (from FedEx involved)? If so, how much?
    - How did the smaller contractors cope with the change - did they combine forces so to speak? Did they sell to larger contractors?
    - What was the effect on prices for route sales (did they go down or up)?
    - etc.
     
  2. STFXG

    STFXG Well-Known Member

    There's no certainty. California won't change at all. OR and WA are possible, but I doubt it. It's an old lawsuit. The changes needed have already been made.
     
  3. scrappy203

    scrappy203 New Member

    Well, at least one Ground depot in WA has already held a contractor meeting letting the contractors know they're going to be converting to an ISP model - but they didn't have many answers beyond that.
     
  4. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    What is a FedEx Ground Independent Service Provider?

    Go here to get FedEx explanation:
    http://www.buildagroundbiz.com/documents/Grow with FedEx Ground Brochure_090111.pdf

    Under the ISP Model, each ISP Candidate (in other words, a business seeking to enter into an ISP Agreement)
    negotiates an ISP Agreement with FedEx Ground for a CSA. The ISP Agreement is a legally-enforceable contract
    that sets forth the business objectives of the ISP and FedEx Ground and summarizes the rights and obligations of
    both parties. Many of the provisions of the ISP Agreement are based on requirements that are mandated by the U.S.
    Department of Transportation and its corresponding regulations.
    Under the ISP Agreement, an ISP has the flexibility to negotiate many contract terms that best fit business and
    service area needs. For example, ISP Candidates have the option to choose whether to use FedEx Ground logos on
    all or some vehicles and whether to outfit employee-drivers in FedEx Ground uniforms, in exchange for negotiated
    brand promotion fees.
     
  5. MrFedEx

    MrFedEx Engorged Member

    Read the post from the CA contractor in the other thread. You would seem to be wrong, which isn't unusual.
     
  6. STFXG

    STFXG Well-Known Member

    I don't believe it. FedEx doesn't send out emails about legal stuff. It would be a meeting in the morning to discuss the possibility, followed by a packet of information that local management will read, that packet of info posted to mygroundbiz.

    But what do I know.
     
  7. dvalleyjim

    dvalleyjim Member

    CA is going ISP. I have worked as a driver for an ISP in my new state. It ain't a good deal. I now have a new better job and am out of Fed Ex. 18 years as a CA contractor. Almost 2 years as a home delivery driver. 20 years with this crony capitalist company. I still wan't my $ from the Class Action.
     
  8. M I Indy

    M I Indy Member

    Correct, some well known members just don't know, they think they do, using blurred memory instead of a search engine.
     
  9. STFXG

    STFXG Well-Known Member

    Yeah I saw that. NV switching as well. I was wrong. What's new, right?

    Should've read some articles. Hadn't read anything since the court decision.
     
    Last edited: Aug 31, 2014
  10. gixxer squid

    gixxer squid Member

    To: All affected authorized officers

    From Sean O’Connor: Moving to the Independent Service Provider agreement in select states
    Time, information, options and incentives will be provided to assist with transition

    In light of legal and regulatory developments in several states – including the recently published U.S. Court of Appeals for the Ninth Circuit decision – we are announcing a transition to the Independent Service Provider Agreement (ISPA) for businesses providing pickup and delivery service (including Home Delivery) that are domiciled in California, Oregon, Washington, Nevada and the Yuma, Ariz., colocation.

    {{text removed - please don't copy / paste copyrighted content on our forum}}
     
    Lasted edited by : Sep 1, 2014
  11. gixxer squid

    gixxer squid Member

    There you go boys. Thats the email. Sorry to rain on your parade STFXG.

    I truly am trying to keep a positive attitude but seems like we are a dead horse continually getting beat when we are already down….
     
    Last edited: Aug 31, 2014
  12. STFXG

    STFXG Well-Known Member

    Good luck gixxer. I don't mind being proven wrong. Sucks to hear that news though.
     
  13. Cactus

    Cactus Just telling it like it is

    "We recognize that change is never easy*, and we are committed to providing you as much information as we can, as soon as we can. In the meantime, please know that the ISPA remains true to the entrepreneurial spirit of our business model, and has proved to be successful in 17 states, where more than 800 businesses successfully transitioned to the ISPA and are providing outstanding and reliable service."

    *for you guys but for us, were gonna get wealthier, not you. But you'll get to work harder.
     
  14. gixxer squid

    gixxer squid Member

    I like the comment that "proven successful in 17 states…."

    Did the contractors even have a choice, successful for who (don't answer, haha)
     
  15. gixxer squid

    gixxer squid Member

    No worries, we are all wrong from time to time. I would love to know more from other ISP providers the ins and outs, and not from the propaganda machine either. I can be PM'd with a number that I can call someone to get info from. If there is any negotiation I would like to prepare myself for the best possible scenario and package if thats even possible…..
     
  16. rdy4trvl

    rdy4trvl New Member

    Any contractors that converted to ISP care to comment on the "negotiations" and net financial impact?
     
  17. CJinx

    CJinx Well-Known Member

    Oh boy. YES - we had a few contractors form "multi-headed monster" ISP corps. They are a nightmare to deal with. Only one of them is recognized as the 'owner' but the others like to think they're owners as well and hound station personnel to make changes that only the owner is allowed to do. We don't have any left today because they eventually fail due to infighting.

    The successful ones were the former contractors who sold their routes and became drivers or left the business entirely.
     
  18. Steve Mawhorter

    Steve Mawhorter New Member

    Did anyone respond to your post?
     
  19. gixxer squid

    gixxer squid Member

    500 stops or 5 PSA's. You got till April to comply. Get out if you can IMHO
     
  20. bbsam

    bbsam Moderator Staff Member

    Any luck selling?