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Softening Us Up?
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<blockquote data-quote="Ricochet1a" data-source="post: 980199" data-attributes="member: 22880"><p>Actual cost to a "customer" (in your case FedEx) for your services and effective end compensation for an employee are two separate issues/numbers. </p><p></p><p>The actual cost to FedEx in having a contract with a particular contractor is absolutely irrelevant in making comparisons in actual employee compensation <u>between different companies and business models.</u> Again, take what you pay your employees, add in the cost of any benefits they receive, divide that by total hours they work, and you have their effective compensation rate. What FedEx pays you as a contractor is absolutely irrelevant when it comes to determining the total compensation a "helper" (non-owner operator) makes. </p><p></p><p>One cannot make a direct comparison between compensation received by Ground contractors to the effective compensation rates for <u>employees </u>across the industry. </p><p></p><p>This is all part of the smoke and mirrors that FedEx has been engaging in for years. The "owners" are paid X dollars a year for the routes they own. Well, that is the cost to FedEx, but then the owner has to expense everything (vehicle, fuel, maintenance, wages for non-owners) and they are left with a much smaller figure in their pocket. </p><p></p><p>Then the "helpers" are left with getting more often than not a very small salary for doing 50-60 hours a week of work. What the route owners receive from FedEx for running the route ISN'T the effective compensation rate of the drivers actually doing the work which don't own the route and don't receive dividends.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 980199, member: 22880"] Actual cost to a "customer" (in your case FedEx) for your services and effective end compensation for an employee are two separate issues/numbers. The actual cost to FedEx in having a contract with a particular contractor is absolutely irrelevant in making comparisons in actual employee compensation [U]between different companies and business models.[/U] Again, take what you pay your employees, add in the cost of any benefits they receive, divide that by total hours they work, and you have their effective compensation rate. What FedEx pays you as a contractor is absolutely irrelevant when it comes to determining the total compensation a "helper" (non-owner operator) makes. One cannot make a direct comparison between compensation received by Ground contractors to the effective compensation rates for [U]employees [/U]across the industry. This is all part of the smoke and mirrors that FedEx has been engaging in for years. The "owners" are paid X dollars a year for the routes they own. Well, that is the cost to FedEx, but then the owner has to expense everything (vehicle, fuel, maintenance, wages for non-owners) and they are left with a much smaller figure in their pocket. Then the "helpers" are left with getting more often than not a very small salary for doing 50-60 hours a week of work. What the route owners receive from FedEx for running the route ISN'T the effective compensation rate of the drivers actually doing the work which don't own the route and don't receive dividends. [/QUOTE]
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