It will be fine
Well-Known Member
What type of shady stuff were you doing with your own payroll that an audit upsets you so much? You didn't even have employees.
Looking for some insight on purchasing and running a ground route
- Thread starter FdxExp4217
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What gives them the right. Besides that your forced to agree to it. Again, try to negotiate that you won't do it. Oh yea, it's not really a negotiation, I forgot!
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Am I free to walk away and work elsewhere?
And are you saying YOU are upset that I don't have as much say in the Agreement as YOU think I should?
STFXG
Well-Known Member
I think it's crossing the line. I felt very uncomfortable when I got audited, but I also agreed to it. It's b.s.
I agree it seems like crossing the line but at the same time I think it's all driven by keeping in legal compliance.
It is crossing the line! Wake up!
Am I free to go elsewhere?
That's not really negotiating. That's your weak answer every time you don't have a legit answer.
Why can't you hire subcontractors to deliver packages for you??? Why MUST you treat your drivers as employees????
You know why- it's because fedex wants to control every step of the delivery process- making you an employee, no matter how many routes you manage for them. All you are is a manager who takes on any risk fedex can get you to fall for. You can't expand past their artificial limits, you don't have 'unlimited' potential. Fedex STRICTLY limits what you can and can't do.
How come you can't deliver appliances for Sears in the same truck that you use for fedex at the same time???? Is it because you can choose what goes in your vehicle????
All the control makes you an employee, no matter that it hasn't yet been litigated. Fedex can call you an ISP, and you can pretend that you believe it. But when they control what you can put in YOUR vehicle, who can drive YOUR vehicle, and tell you where to be and when to be there in your own vehicle, you are not making your own decisions. Why can't you buy an old Geo metro and put all your rural deliveries in it to save on fuel, or hire someone with a moped to drop off a few packages for you?
You don't run the service the way you want if you were truly independent- you run it the way they want you to run it.
. Dmac, he's not going to answer because Fred hasn't told him how to answer.
No it's because it is the same worthless argument. You both know the reasons same as everyone that has been involved with this business.
What happened back in the day? FedEx could care less if you subcontracted but guess what the govt realized that none of these subs were paying their taxes so Uncle Sam shoved his foot up Xs ass, now it is mandatory. It is your beloved govt to thank for that one.
Why can't you deliver stuff from Sears?? You can, just make sure you cover all FedEx decals and opt out of $8,000 worth of incentives to not advertise and don't do it while you have their packages on your truck. Get your own DOT number, get your own trucking liability (extra thousands a month) since they have no interest in covering you for unbranded trucks and other people deliveries. So now that you have cost yourself $30,000+ worth of additional costs you can hire your own drivers and subcontract them for the other deliveries that you do on the side and pay an extra $500-1000 a month in liability for the guy with numerous speeding tickets and DUIs that you desperately want to hire.
Nobody has ever told me how to run my route or what time I need to make any deliveries before. Also I run my service on average at 99.85 because I want to they don't give me any incentive to do that.
So why didn't you guys tell them you would rather get your own DOT number and self insure your trucking liability to have more freedom?? We all know the answer to that question too.
Actually, I've always run my business with employees rather than subcontractors. Why? Because legally I had to. Why does X demand we use employees rather than subcontractors? Because too many companies exploit subcontracting and misclassified them.
Once again, everything you claim I should be able.to do you actually complain when it's done. What do I hear when a Ground driver is seen working out if uniform? "How unprofessional!" And yet here we have the voices of Ground detractors complaining that they are required to wear a certain uniform.
You are wrong. Legally, you can use subcontractors if you have your own business. But fedex won't let you. You could subcontract to a local courier company, or even an Uber driver. You could have people with smaller vehicles call in daily to see if you have work for them. Only certain vehicles need DOT numbers and you know that, but don't want to admit it to yourself. A package doesn't require that a fedex marked vehicle deliver it- fedex requires it. You really need to quit lying to yourself.
It's too late for them, they are in too deep. Fred has them brainwashed. Let them believe the are great entrepreneurs. They must defend the scam.
Legally I can but not be able to run it the way I want to. The subcontractor would have to do his own taxes pay for fuel, repairs, could set his own hours etc.
Honestly, I would say 99% (and probably more) of Ground contractors who operated with subcontractors were doing so illegally. And your assertion is that they should have that right and X should still have to do business with them?
I have an unmarked truck that delivers on a daily basis. had a minivan like that too.
The point you are trying to avoid is that you could legally use subcontractors, but fedex demands otherwise. You could easily carry other deliveries for other shippers at the same time not affecting your fedex deliveries, but fedex won't let you. You could legally drop off remote rural packages at some other local delivery service to save you money, but fedex won't let you. Try telling an independent trucker with a 53 foot trailer that he can only carry your cargo, even though he has 20 feet extra and is going right next door where he could earn another $500. You are prohibited from making decisions that are in your own financial interest and would have no effect on fedex. You can't even admit it. Pathetic.
They want to audit you so next contract negotiations, they have an edge. Knowing what you pay out tells them if they can cut your contract. How is that independent, when your 'customer' knows how much you are making, down to the penny, when you don't have the same right???? The knowledge they gain limits your ability to negotiate.
It will be fine
Well-Known Member
They've never audited my payroll. I've negotiated several times, they really don't care about my expenses. They care about how cheap they can get someone to do this for and that is based on what they pay everyone else. To determine wages they just need to look at publicly available data for average light duty truck drivers. We end up paying a bit more than average around here.
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