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The negotiation scam
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<blockquote data-quote="MrFedEx" data-source="post: 1779991" data-attributes="member: 12508"><p>The reason contractors do so well is that Ground drivers do so poorly. The current profit margin is around 18%, which is phenomenal in today's economy. With that revenue stream, Smith can afford to cut the contractors/ISPs in on the scam, which they will defend to the death because they're cashing-in.</p><p></p><p>If the playing field were level and FedEx had to pay real world wages and benefits, the profit margin would be far less. And if Ground drivers were found to be employees and could and did unionize, then FedEx would be on par with UPS, which has to pay competitive wages, offer benefits and a real pension, AND actually buy and maintain safe vehicles.</p><p></p><p>It's one huge scam, and all of the usual suspects will come on here and tell us how legal it is, how the model has been modified etc. BS!!</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1779991, member: 12508"] The reason contractors do so well is that Ground drivers do so poorly. The current profit margin is around 18%, which is phenomenal in today's economy. With that revenue stream, Smith can afford to cut the contractors/ISPs in on the scam, which they will defend to the death because they're cashing-in. If the playing field were level and FedEx had to pay real world wages and benefits, the profit margin would be far less. And if Ground drivers were found to be employees and could and did unionize, then FedEx would be on par with UPS, which has to pay competitive wages, offer benefits and a real pension, AND actually buy and maintain safe vehicles. It's one huge scam, and all of the usual suspects will come on here and tell us how legal it is, how the model has been modified etc. BS!! [/QUOTE]
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