Ground Contractor Issues Relating to Express

[bbsam]

So in otherwords, you can operate your business as you please, but you'll be penalized with a withholding of monies if you don't operate as FedEx "suggests". This isn't an independent contractor model, it is legalized extortion. FedEx demands that your employees meet a certain standard, or they'll reduce payment to you? They can call it a bonus, but it is a requirement. I'm sure that $26,000 is a substantial part of your annual profit margin. You don't comply, you don't make a decent profit.

Are there any "contractors" that don't get the "bonus" and are still able to make a profit on their "business"?

More FedEx shell game of trying to claim the use of independent contractors, but exerting an employee-employer control all the way down to the "helpers". This is why this charade will eventually end. It is misclassification of the worst kind, only allowed to continue because of FedEx's legal struggles to keep it in motion.

The Express employees are getting like treatment, just not as severe; since we still have "employee" status with the corporation.

and if my drivers don[t show up and deliver the packages i we don't get paid for delivering them. in fact they could show up, walk around the truck throw up a card table, play poker for 10 hours and fedex would refuse to pay us for not delivering those 1200 packages. is that "extortion" ? is all piece work "extortion"? fedex's position, the legal position, is that they do not control methods, they simply aim to control results. and to me $26000 is ample compensation.

 

[FedEx Trade Networks]

So in otherwords, you can operate your business as you please, but you'll be penalized with a withholding of monies if you don't operate as FedEx "suggests". This isn't an independent contractor model, it is legalized extortion. FedEx demands that your employees meet a certain standard, or they'll reduce payment to you? They can call it a bonus, but it is a requirement. I'm sure that $26,000 is a substantial part of your annual profit margin. You don't comply, you don't make a decent profit.

Are there any "contractors" that don't get the "bonus" and are still able to make a profit on their "business"?

More FedEx shell game of trying to claim the use of independent contractors, but exerting an employee-employer control all the way down to the "helpers". This is why this charade will eventually end. It is misclassification of the worst kind, only allowed to continue because of FedEx's legal struggles to keep it in motion.

The Express employees are getting like treatment, just not as severe; since we still have "employee" status with the corporation.

Not too familiar with the IC model within Ground, but if I contracted someone to do a specific task and he or she didn't do it, I wouldn't dish out any money.

 

[Ricochet1a]

Not too familiar with the IC model within Ground, but if I contracted someone to do a specific task and he or she didn't do it, I wouldn't dish out any money.

You're missing the point. It isn't the piece work that is being paid with this "bonus", it is methods (personnel). It isn't the task that is being compensated with this money, it is the corporate assessment of the qualifications of the helpers to meet FedEx standards. By penalizing the contractor for not meeting FedEx personnel standards, the company is exerting undue influence upon the supposed independent contractor. If the requirement was that the helpers met the standard or the contract wouldn't be issued, that would be one thing. Coercing the supposed contractors into meeting a standard, or having them suffer a reduction in payment is another.

Corporations can create standards for their employees. Having a corporation extend those exact same standards to an independent contractor is undue influence, since monies are withheld if those standards are not met. An employee of an company CANNOT be paid just a little less for failing to pass a drug test or pass a background check. It is an all or nothing situation. Can the IC pay their helper just a little less if they are a stoner or can't speak basic English? This is the situation that is being forced upon the supposed IC by FedEx. Meet a corporate standard or suffer a reduction in compensation (but you're still good to go to get those pieces out with the stoners and illegals)...

 

[bbsam]

You're missing the point. It isn't the piece work that is being paid with this "bonus", it is methods (personnel). It isn't the task that is being compensated with this money, it is the corporate assessment of the qualifications of the helpers to meet FedEx standards. By penalizing the contractor for not meeting FedEx personnel standards, the company is exerting undue influence upon the supposed independent contractor. If the requirement was that the helpers met the standard or the contract wouldn't be issued, that would be one thing. Coercing the supposed contractors into meeting a standard, or having them suffer a reduction in payment is another.

Corporations can create standards for their employees. Having a corporation extend those exact same standards to an independent contractor is undue influence, since monies are withheld if those standards are not met. An employee of an company CANNOT be paid just a little less for failing to pass a drug test or pass a background check. It is an all or nothing situation. Can the IC pay their helper just a little less if they are a stoner or can't speak basic English? This is the situation that is being forced upon the supposed IC by FedEx. Meet a corporate standard or suffer a reduction in compensation (but you're still good to go to get those pieces out with the stoners and illegals)...

let's look at it a different way. if the local power company that contracts with an electrical contractor requires that all workers pass a backgroud check and submit to a drug screen before being allowed on the grounds, is that contractor suddenly an employee of the power company? or how 'bout this. ground has a service account. keep $1000 in that account and the company matches it with $200 per quarter. for those slow at math, that is an 80% return. noone has to do it, and we do have those stupid enough not to take advantage, but why pass up the money? the question remains the same for the epp program. a contractor need not do it, but only the worst business person would pass it up.

 

[FedEx Trade Networks]

You're missing the point. It isn't the piece work that is being paid with this "bonus", it is methods (personnel). It isn't the task that is being compensated with this money, it is the corporate assessment of the qualifications of the helpers to meet FedEx standards. By penalizing the contractor for not meeting FedEx personnel standards, the company is exerting undue influence upon the supposed independent contractor. If the requirement was that the helpers met the standard or the contract wouldn't be issued, that would be one thing. Coercing the supposed contractors into meeting a standard, or having them suffer a reduction in payment is another.

Corporations can create standards for their employees. Having a corporation extend those exact same standards to an independent contractor is undue influence, since monies are withheld if those standards are not met. An employee of an company CANNOT be paid just a little less for failing to pass a drug test or pass a background check. It is an all or nothing situation. Can the IC pay their helper just a little less if they are a stoner or can't speak basic English? This is the situation that is being forced upon the supposed IC by FedEx. Meet a corporate standard or suffer a reduction in compensation (but you're still good to go to get those pieces out with the stoners and illegals)...

That does make more sense; thanks for the clarification. But from a high level, it is still simply a contract. If you're not willing to meet the terms/standards/conditions outlined in the contract (no matter what they are) don't agree to the terms or suffer the consequences. No one is forcing you to sign the contract.

 

[MrFedEx]

That does make more sense; thanks for the clarification. But from a high level, it is still simply a contract. If you're not willing to meet the terms/standards/conditions outlined in the contract (no matter what they are) don't agree to the terms or suffer the consequences. No one is forcing you to sign the contract.

I know you are relatively new to FedEx, but do a bit of research into how this company does business. I guarantee you'll have some revelations. As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare. Watch and see what happens.

 

[Ricochet1a]

That does make more sense; thanks for the clarification. But from a high level, it is still simply a contract. If you're not willing to meet the terms/standards/conditions outlined in the contract (no matter what they are) don't agree to the terms or suffer the consequences. No one is forcing you to sign the contract.

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

 

[Catatonic]

As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare.

FedEx Trade Networks,
That is probably not good advise!

 

[bbsam]

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

this is something that confuses me. i believe you yourself have posted the irs differentiation between employees and contractors. but where in that differentiation does it suggest that the "paying party doesn't poes the expertise or resourses..." is this personal opinion? that is not to say that opinions are not valid, but many trucking companies with plenty of expertise have used ic models. the united states government has used ic to do every thing from base maintenece to troop support. and although i fond kbr and blackwater personally reprehensible, to suggest that they are a sham seems a stretch. and as for the contractors at ground, i know of few who would want to be employees anyway. guys who have been around several years become territorial. something that always amazed me when fedex bought rps was that noone seemed to want to transfer to the other side, as if the grass didn't look greener on the other side.

 

[FedEx Trade Networks]

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

I would think the issue falls with the IC. Aren't they the ones setting the wages for their employees? I mean, one would think you'd know your break even point, potential profit, etc...

In the construction world, it is built on contracting, sub-contracting and so forth. I would say a good portion of those folks possess the skills needed to complete the function, they just chose the alternative route. (I've had some bad experiences with this, too!)

Also, didn't RPS have this model and FedEx Corp adopt it??

Good points and thanks for educating the "newbie."

 

[FedEx Trade Networks]

I know you are relatively new to FedEx, but do a bit of research into how this company does business. I guarantee you'll have some revelations. As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare. Watch and see what happens.

I certainly don't agree with everything they do, but that's generally the nature of things. I don't have a lot of visibility into the Express side of things but don't think any company would welcome the idea of employees disucssing unions in the work place.

There were some employees discussing unions several years ago and they're still with the company. Granted, I don't know what went on "behind closed doors" I can only attest that they're still around.

 

[Testicular Fortitude]

again, the issue isn't the contract between fedex and the owners, it is the subterfuge that fedex is engaging in to prevent the helpers/employees/slaves of ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against fedex. Fedex specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that fedex doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the ic model of ground is a sham. It exists to prevent the drivers from being able to unionize. Fedex had no choice but to have ground and express as separate operating companies, since if they did operate as a combined unit, there would be absolutely no way express could keep its rla status. By engaging in this subterfuge, fedex can keep express covered by rla, keep the ground drivers from unionizing and keep the wages that ground drivers are paid low, so fedex can maintain a competitive advantage over ups or other systems integrators.

several state attorney generals signed and sent a joint letter to the fedex liars sorry meant lawyers about the misclassification of the fedex ground and home drivers as independent contractors.every express worker in the country should contact their state attorney general and complain about the independent contractor sham being perpetrated upon the taxpayers of their state by the fedex corporation.the corporate tax structure is greatly higher than the taxes paid by the independent contractor robbing all the states of tax monies due to them.

 

[UpstateNYUPSer(Ret)]

The IC model is a sham and needs to be exposed but unfortunately its exposure, in conjunction with the removal of the RLA exemption, will come at the detriment of the express drivers as Fred will simply shift more and more work over to the newer FedEx employees until eventually your business model will mirror ours. Do you think he is spending all of this money in upgrading and building new ground facilities for the hell of it it?

 

[MrFedEx]

The IC model is a sham and needs to be exposed but unfortunately its exposure, in conjunction with the removal of the RLA exemption, will come at the detriment of the express drivers as Fred will simply shift more and more work over to the newer FedEx employees until eventually your business model will mirror ours. Do you think he is spending all of this money in upgrading and building new ground facilities for the hell of it it?

You've got it. Has anyone else noticed that all of the Ground trailers that used to be at Express ramps have disappeared during the RLA fight? As Upstate astutely points out, why would Smith invest so heavily into new Ground facilities if he didn't have plans to greatly expand Ground's scope? Some of it can be explained away by the shift to lower costs modes by shippers during this recession, but why did Smith purchase so many air-only Ground trailers? There can be only one logical answer.

 

[bbsam]

several state attorney generals signed and sent a joint letter to the fedex liars sorry meant lawyers about the misclassification of the fedex ground and home drivers as independent contractors.every express worker in the country should contact their state attorney general and complain about the independent contractor sham being perpetrated upon the taxpayers of their state by the fedex corporation.the corporate tax structure is greatly higher than the taxes paid by the independent contractor robbing all the states of tax monies due to them.

what i would like to know is why these states attorneys didn't just file suit. sounds like they are trying to get changes made without a long messy trial where the outcome would be uncertain. of course why would fred that? also the headline said that the attorneys general said the contractors were misclassified, but the article gave a different angle, almost like they thought a lawsuit would be a waste of the states time and money.