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<blockquote data-quote="bbsam" data-source="post: 554564" data-attributes="member: 22662"><p>I know what Smith is thinking. Its all about the fluidity of the business model. The loss of the RLA exemption is problematic, and there is relatively little that Fedex can effectively do about it. I actually agree with a UPS spokesman who call Brownbailout.com turning up the noise. Even though i think Fedex has a cogent and intelligent challenge to the removal of that exemption, I don't know that it will matter.</p><p>That brings us to the IC legal battles. Without the exemption, I don't see that it is worth it for Fred to continue to operate separately. The simple savings made through incorporating the two and shedding 1/3 to 1/2 of expresses employees would easily fascillitate the continuation of legal battles. And if you doubt that the transition would be that easy, look at what Fedex has been spending their money on. I would be willing to bet that a simple reflash of the starIII scanners would allow us to scan express packages. I don't know about Express hubs but Ground hubs have been growing exponentially in size and sophistication. While most of Fedex posted huge losses Ground showed a slight profit. Knowing what we know of Mr. Smith it seems to defy logic to suggest that Ground contractors would be jettisoned when there remains legal precedent as well as IRS acknowledgement of the IC model.</p></blockquote><p></p>
[QUOTE="bbsam, post: 554564, member: 22662"] I know what Smith is thinking. Its all about the fluidity of the business model. The loss of the RLA exemption is problematic, and there is relatively little that Fedex can effectively do about it. I actually agree with a UPS spokesman who call Brownbailout.com turning up the noise. Even though i think Fedex has a cogent and intelligent challenge to the removal of that exemption, I don't know that it will matter. That brings us to the IC legal battles. Without the exemption, I don't see that it is worth it for Fred to continue to operate separately. The simple savings made through incorporating the two and shedding 1/3 to 1/2 of expresses employees would easily fascillitate the continuation of legal battles. And if you doubt that the transition would be that easy, look at what Fedex has been spending their money on. I would be willing to bet that a simple reflash of the starIII scanners would allow us to scan express packages. I don't know about Express hubs but Ground hubs have been growing exponentially in size and sophistication. While most of Fedex posted huge losses Ground showed a slight profit. Knowing what we know of Mr. Smith it seems to defy logic to suggest that Ground contractors would be jettisoned when there remains legal precedent as well as IRS acknowledgement of the IC model. [/QUOTE]
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