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What if the Ground ISP Model Fails?
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<blockquote data-quote="MrFedEx" data-source="post: 784085" data-attributes="member: 12508"><p>Here's an interesting "problem". Perhaps we over here at Express should actually be rooting for the ISP <em>not </em>to fail. Think about it. In order to shift E2 and SOS over to Ground, FedEx has to make substantial improvements in the Ground system. That means increased Express oversight and interference, more pay for drivers, <em>and</em> an increasing chance that the ISP model will be declared ilegal. If that happens, and Ground drivers actually do become employees, there will be an increased incentive to make the shift based on higher pay and more competent employees. Whether or not it will be worth it for Fred is debatable, because he isn't paying new Express employees that much more than he would need to pay new Ground employees. Presumably, they would also share in the new combined insurance package as well. <em>If </em>the Ground cost structure remains less than Express, you'd have to figure the Evil One will head in that direction.</p><p> </p><p>That would also mean a buyout of contractors, and since we know that Fred isn't exactly generous, that would also create some new legal battles over what routes/vehicle are worth. Think Fred would offer top dollar? Think again.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 784085, member: 12508"] Here's an interesting "problem". Perhaps we over here at Express should actually be rooting for the ISP [I]not [/I]to fail. Think about it. In order to shift E2 and SOS over to Ground, FedEx has to make substantial improvements in the Ground system. That means increased Express oversight and interference, more pay for drivers, [I]and[/I] an increasing chance that the ISP model will be declared ilegal. If that happens, and Ground drivers actually do become employees, there will be an increased incentive to make the shift based on higher pay and more competent employees. Whether or not it will be worth it for Fred is debatable, because he isn't paying new Express employees that much more than he would need to pay new Ground employees. Presumably, they would also share in the new combined insurance package as well. [I]If [/I]the Ground cost structure remains less than Express, you'd have to figure the Evil One will head in that direction. That would also mean a buyout of contractors, and since we know that Fred isn't exactly generous, that would also create some new legal battles over what routes/vehicle are worth. Think Fred would offer top dollar? Think again. [/QUOTE]
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