fedex transition

bbsam

Moderator
Staff member
Why? Because the scam has worked out so well for you? Do you still liken the Ground model to a franchisor/franchisee arrangement? What's happening would appear to be stretching the bounds of legality even further.
Ironically it is changing to conform to being sued by single route owners and those claiming they were misclassified as contractors. I know, I know. It's not working out the way they/you envisioned. You thought they'd have to make everyone employees and then the union would swoop in and all would finally conform to your vision of how things should be. Unintended consequences, sure. But anyone paying attention should have seen it all coming from seven years ago.
 

FedexCares

Well-Known Member
Under ISP some will prosper some will perserve and some will become impoverished. It would be unwise simply to believe that you will be safe by " getting up to scale" and procuring some more routes because in this case as we all know the same unpleasant realities are not going away.You have in no way shape or form the contract language required to preserve your equity. Futhermore, you are only as economically viable as the strength of the local economy you are serving and your ability to find somebody willing to go out there every day and perform at a level that matches or betters what a UPS driver does for half what a UPS driver gets paid. Now I know that many of you multi routes are basing everything you do or about to do on wealth accumulation expectations but the aforementioned facts combined with the real prospects for the creation of an annual pattern of shrinking margins thanks to the impossible task of negotiating a balanced deal in an unbalanced negotiating environment will be value depreciating facts that will be impossible to hide from any qualified prospective buyer.

Half of what UPS pays? I think that's a bit generous. All the ground guys on my route (I'm Express btw) make ~750/week and work 55-60 hours which comes to 12-13$ an hour. UPS tops out at like what now, 34$/hour?
 

FedExer267

Well-Known Member
750 is hard to find the hours are accurate but it's 650 to 700 a week where I am at. Being in an OT state. Going to be interesting to see as minimum wage goes up how Contractors are going to keep drivers in the seats.
 

dmac1

Well-Known Member
Yeah I may be joining you soon. Should have put mine for sale a year sooner. Think there will be some court cases though. From what I read signing the limited contract also implies you agree not to sue over the announcement so X must feel vulnerable there. My current contract includes proprietary rights to operate , lease or sell. Seems to me the announcement breaches part of that by decreasing the value of my route and hindering the sale to only current contractors who can now wait me out.


You may notice that fedex has the right to simply cancel your HD contract if they decide to quit operating in your area without recourse for you.
 

dmac1

Well-Known Member
Ironically it is changing to conform to being sued by single route owners and those claiming they were misclassified as contractors. I know, I know. It's not working out the way they/you envisioned. You thought they'd have to make everyone employees and then the union would swoop in and all would finally conform to your vision of how things should be. Unintended consequences, sure. But anyone paying attention should have seen it all coming from seven years ago.

Why do you continuously misstate why people sued?????

People sued because fedex was not treating them as contractors, not the other way around. The courts have already decided that fedex was treating people like employees. Quit lying.
 

echo

Active Member
You may have up to 5 years to find a buyer. Around here there were plenty of desperate guys trying to get to scale that prices stayed relatively high. A lot can happen within a few years.
The waivers to not sue fedex are worth the paper they're printed on. Take their cash for signing them, but they're meaningless. If FedEx does something illegal you can still sue them. They hand out the waivers as intimidation so you don't think about suing, they'd never hold up.
Good point. Thanks
 

echo

Active Member
You may notice that fedex has the right to simply cancel your HD contract if they decide to quit operating in your area without recourse for you.
Yeah they can do that. My point was affecting my proprietary rights while under contract.
 

bbsam

Moderator
Staff member
Why do you continuously misstate why people sued?????

People sued because fedex was not treating them as contractors, not the other way around. The courts have already decided that fedex was treating people like employees. Quit lying.
In some cases, yes.

And now X has decided they will treat ISP's as contractors...and the same people can't stand it. Or is it more likely that you and others don't like that contracting law doesn't say what you want it to say?
 

It will be fine

Well-Known Member
Why do you continuously misstate why people sued?????

People sued because fedex was not treating them as contractors, not the other way around. The courts have already decided that fedex was treating people like employees. Quit lying.
People sued because they thought they could get some cash. I don't think anyone actually cared how they were treated. Certainly no one cared about the repercussions of their lawsuits for the contractors that remained.
 

bacha29

Well-Known Member
It was clearly a case of X wanting it both ways. When it came to command and control of a work force you were an employee. When it came to the divestiture of risk liability and variable costs you were an independent contractor. The courts have and are continuing to figure it out. ISP in response is nothing more than a reconfiguration that on the surface grants what would appear to be greater autonomy without having to relinquish any meaningful control or bind itself to any agreement that does not grant it exclusive interpretive rights as well as the right to unilaterally declare the agreement null and void anytime any place for any reason and allow it to walk away full free and clear of any liability. These unbalanced terms are the ones X demands if you want todo business with them and you should feel honored for having been granted the opportunity to do the company's dirty work.
 

dmac1

Well-Known Member
People sued because they thought they could get some cash. I don't think anyone actually cared how they were treated. Certainly no one cared about the repercussions of their lawsuits for the contractors that remained.


I am a named plaintiff because fedex violated the contract. Pure and simple. If fedex had followed the law and the contract, there could not have been any successful lawsuit.
 

echo

Active Member
Wanted to thank everyone for the insight. My worries are a bit different as I was wanting out anyway and trying now to salvage what I can on exit. Some of my friends are facing the other side of the coin. To expand and how? Or what to expect. I did notice the requirements say 5 PSA OR 500 stops. So a 5 PSA doing 400 is ok? Also a hypothetical for anyone that's been thru transition. Example: there is some outlying zipcodes at the outer most range of a terminal but no one wants it because everyone is trying to stay dense. Does the terminal force the nearest contractor to make it part of his CSA in return for approving the rest of the contract he wants? In other words does it have to go to nearest PSA or how else have you seen it resolved? I see from the time schedules whatever is going to sale will be done before the nest phase as you have to have an area to present them so at some point I should be able to sell mine but wondering how things get divided up.
 
Top