Ground Contractor Issues Relating to Express

[MrFedEx]

Originally Posted by FedEx Trade Networks

That does make more sense; thanks for the clarification. But from a high level, it is still simply a contract. If you're not willing to meet the terms/standards/conditions outlined in the contract (no matter what they are) don't agree to the terms or suffer the consequences. No one is forcing you to sign the contract.

I know you are relatively new to FedEx, but do a bit of research into how this company does business. I guarantee you'll have some revelations. As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare. Watch and see what happens.

[Ricochet1a]

Originally Posted by FedEx Trade Networks

That does make more sense; thanks for the clarification. But from a high level, it is still simply a contract. If you're not willing to meet the terms/standards/conditions outlined in the contract (no matter what they are) don't agree to the terms or suffer the consequences. No one is forcing you to sign the contract.

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

[Hoaxster]

Originally Posted by MrFedEx

As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare.

FedEx Trade Networks,
That is probably not good advise!

[bbsam]

Originally Posted by Ricochet1a

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

this is something that confuses me. i believe you yourself have posted the irs differentiation between employees and contractors. but where in that differentiation does it suggest that the "paying party doesn't poes the expertise or resourses..." is this personal opinion? that is not to say that opinions are not valid, but many trucking companies with plenty of expertise have used ic models. the united states government has used ic to do every thing from base maintenece to troop support. and although i fond kbr and blackwater personally reprehensible, to suggest that they are a sham seems a stretch. and as for the contractors at ground, i know of few who would want to be employees anyway. guys who have been around several years become territorial. something that always amazed me when fedex bought rps was that noone seemed to want to transfer to the other side, as if the grass didn't look greener on the other side.

[FedEx Trade Networks]

Originally Posted by Ricochet1a

Again, the issue isn't the contract between FedEx and the owners, it is the subterfuge that Fedex is engaging in to prevent the helpers/employees/slaves of Ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against FedEx. FedEx specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that FedEx doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the IC model of Ground is a sham. It exists to prevent the drivers from being able to unionize. FedEx had no choice but to have Ground and Express as separate operating companies, since if they did operate as a combined unit, there would be ABSOLUTELY no way Express could keep its RLA status. By engaging in this subterfuge, FedEx can keep Express covered by RLA, keep the Ground drivers from unionizing and keep the wages that Ground drivers are paid low, so FedEx can maintain a competitive advantage over UPS or other systems integrators.

I would think the issue falls with the IC. Aren't they the ones setting the wages for their employees? I mean, one would think you'd know your break even point, potential profit, etc...

In the construction world, it is built on contracting, sub-contracting and so forth. I would say a good portion of those folks possess the skills needed to complete the function, they just chose the alternative route. (I've had some bad experiences with this, too!)

Also, didn't RPS have this model and FedEx Corp adopt it??

Good points and thanks for educating the "newbie."

[FedEx Trade Networks]

Originally Posted by MrFedEx

I know you are relatively new to FedEx, but do a bit of research into how this company does business. I guarantee you'll have some revelations. As you gain experience at FedEx, pay close attention to their tactics. At your next workgroup meeting, for example, bring-up the subject of unions if you dare. Watch and see what happens.

I certainly don't agree with everything they do, but that's generally the nature of things. I don't have a lot of visibility into the Express side of things but don't think any company would welcome the idea of employees disucssing unions in the work place.

There were some employees discussing unions several years ago and they're still with the company. Granted, I don't know what went on "behind closed doors" I can only attest that they're still around.

[Testicular Fortitude]

Originally Posted by ricochet1a

again, the issue isn't the contract between fedex and the owners, it is the subterfuge that fedex is engaging in to prevent the helpers/employees/slaves of ground from receiving a decent wage, or being able to collectively bargain. Because they are broken up over a few thousand owners, they can't form a unified bargaining unit against fedex. Fedex specifically chose this model to prevent the individuals that actually move the packages from being able to create a union.

At the heart of the independent contractor model, is an underlying assumption that the paying party doesn't possess the expertise to either perform the work themselves, or with their employees. It would be a very far stretch to state that fedex doesn't possess the expertise, experience or resources to hire, train and employ people for the purpose of package delivery.

That is why the ic model of ground is a sham. It exists to prevent the drivers from being able to unionize. Fedex had no choice but to have ground and express as separate operating companies, since if they did operate as a combined unit, there would be absolutely no way express could keep its rla status. By engaging in this subterfuge, fedex can keep express covered by rla, keep the ground drivers from unionizing and keep the wages that ground drivers are paid low, so fedex can maintain a competitive advantage over ups or other systems integrators.

several state attorney generals signed and sent a joint letter to the fedex liars sorry meant lawyers about the misclassification of the fedex ground and home drivers as independent contractors.every express worker in the country should contact their state attorney general and complain about the independent contractor sham being perpetrated upon the taxpayers of their state by the fedex corporation.the corporate tax structure is greatly higher than the taxes paid by the independent contractor robbing all the states of tax monies due to them.

[UpstateNYUPSer]

The IC model is a sham and needs to be exposed but unfortunately its exposure, in conjunction with the removal of the RLA exemption, will come at the detriment of the express drivers as Fred will simply shift more and more work over to the newer FedEx employees until eventually your business model will mirror ours. Do you think he is spending all of this money in upgrading and building new ground facilities for the hell of it it?

[MrFedEx]

Originally Posted by UpstateNYUPSer

The IC model is a sham and needs to be exposed but unfortunately its exposure, in conjunction with the removal of the RLA exemption, will come at the detriment of the express drivers as Fred will simply shift more and more work over to the newer FedEx employees until eventually your business model will mirror ours. Do you think he is spending all of this money in upgrading and building new ground facilities for the hell of it it?

You've got it. Has anyone else noticed that all of the Ground trailers that used to be at Express ramps have disappeared during the RLA fight? As Upstate astutely points out, why would Smith invest so heavily into new Ground facilities if he didn't have plans to greatly expand Ground's scope? Some of it can be explained away by the shift to lower costs modes by shippers during this recession, but why did Smith purchase so many air-only Ground trailers? There can be only one logical answer.

[bbsam]

Originally Posted by Testicular Fortitude

several state attorney generals signed and sent a joint letter to the fedex liars sorry meant lawyers about the misclassification of the fedex ground and home drivers as independent contractors.every express worker in the country should contact their state attorney general and complain about the independent contractor sham being perpetrated upon the taxpayers of their state by the fedex corporation.the corporate tax structure is greatly higher than the taxes paid by the independent contractor robbing all the states of tax monies due to them.

what i would like to know is why these states attorneys didn't just file suit. sounds like they are trying to get changes made without a long messy trial where the outcome would be uncertain. of course why would fred that? also the headline said that the attorneys general said the contractors were misclassified, but the article gave a different angle, almost like they thought a lawsuit would be a waste of the states time and money.