FedEx Contractor Troubles??

bbsam

Moderator
Staff member
The economy wasn't in a meltdown 15 years ago. And has there ever been a politician who wasn't aspiring to a higher office? The reality is that they are going after someone with deep pockets who deserves to pay-up. A scam is a scam.
Who's the bigger scam? Fedex or the states looking to line their self depleted coffers? Set aside your prejudice and answer that one honestly.
 

MrFedEx

Engorged Member
Who's the bigger scam? Fedex or the states looking to line their self depleted coffers? Set aside your prejudice and answer that one honestly.

FedEx, because denying the states legitimate tax revenue is illegal. Why do you think the RPS business model was so attractive to FedEx in the first place? Besides passing-off almost all costs to the "contractor", they also avoided paying a slew of taxes.

You're just playing the hand of cards you've been dealt, so I don't blame you. It's the basic RPS model itself that is a scam. It always has been a scheme to have "employees" but not call them as such in order to reap massive profits and undercut the competition.
 

bbsam

Moderator
Staff member
FedEx, because denying the states legitimate tax revenue is illegal. Why do you think the RPS business model was so attractive to FedEx in the first place? Besides passing-off almost all costs to the "contractor", they also avoided paying a slew of taxes.

You're just playing the hand of cards you've been dealt, so I don't blame you. It's the basic RPS model itself that is a scam. It always has been a scheme to have "employees" but not call them as such in order to reap massive profits and undercut the competition.
You might want to look into Ground's use of ISP's (Independent Service Provider). Should more courts find the contractor model deficient, this is the direction the company will head--not the employee model.
 

MrFedEx

Engorged Member
You might want to look into Ground's use of ISP's (Independent Service Provider). Should more courts find the contractor model deficient, this is the direction the company will head--not the employee model.

This worked in California. Are you assuming other states will buy-off on this? Also, what do the states do to collect all of the tax revenue they lost between the sale of RPS to FedEx and their speculated acceptance of the new ISP model? I'm guessing that they sue, and then collect.
 

JimJimmyJames

Big Time Feeder Driver
Is the ISP model where an IC owns multiple routes?

If it is, then technically the drivers who worked for said IC would be able to unionize under their employer.

Now, would an IC allow this to happen? Heck no! To unionize today you have to jump over such hurtles (the major one not being fired by your employer) it is near impossible in many instances.

But remember folks, according to one person (not me), the 7.4% in America in the private workforce who are unionized are destroying the country. So maybe were better off.
 

bbsam

Moderator
Staff member
Is the ISP model where an IC owns multiple routes?

If it is, then technically the drivers who worked for said IC would be able to unionize under their employer.

Now, would an IC allow this to happen? Heck no! To unionize today you have to jump over such hurtles (the major one not being fired by your employer) it is near impossible in many instances.

But remember folks, according to one person (not me), the 7.4% in America in the private workforce who are unionized are destroying the country. So maybe were better off.
Actually, think of i the ISP model as the multiple route IC on steroids. Not in effect in California but in a couple states out east, maybe Maryland or Vermont? In that model, terminals go from having say, 30 contractors to 3-5 contractors. Not sure how the company accomplishes that, but from what I hear, the ISP's are very, very, well compensated. I also understand that the ISP's negotiate directly with Fedex for pay and benefits.
 
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