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The Competition
FedEx Discussions
Big announcement coming in Jan
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<blockquote data-quote="dmac1" data-source="post: 4302980" data-attributes="member: 60252"><p>They can only be sued because their 'independent' contractors are only very questionably independent. </p><p></p><p>At some point, there can't be any savings for fedex by having contractors' pay all the costs that any employer must pay, plus have an entire 'contractor relations' layer, plus still have all the management costs at every terminal. Fedex already has a payroll department, a full HR department to do hiring, and also needs to pay independent contractors to do the same tasks. With technology, payroll can pay double the number of people at no extra cost, other than the cost of printing the extra checks. Fedex has vehicle purchase contracts, and could probably get even better deals if they just bought all fedex vehicles. Instead, independent contractors need to pay more, and then fedex needs to pay them more so the contractors can do their job and still pay legal wages. By using 'independent' contractors fedex is actually reducing potential efficiencies they could obtain through integrating the ground side. Just in the potential of having only a single vehicle in each area in so much of the country would save billions of dollars. That is why UPS can compete with the low wage fedex drivers. </p><p>If contractors are truly independent, there is NO legitimate interest for fedex in the wages being paid to delivery drivers.</p></blockquote><p></p>
[QUOTE="dmac1, post: 4302980, member: 60252"] They can only be sued because their 'independent' contractors are only very questionably independent. At some point, there can't be any savings for fedex by having contractors' pay all the costs that any employer must pay, plus have an entire 'contractor relations' layer, plus still have all the management costs at every terminal. Fedex already has a payroll department, a full HR department to do hiring, and also needs to pay independent contractors to do the same tasks. With technology, payroll can pay double the number of people at no extra cost, other than the cost of printing the extra checks. Fedex has vehicle purchase contracts, and could probably get even better deals if they just bought all fedex vehicles. Instead, independent contractors need to pay more, and then fedex needs to pay them more so the contractors can do their job and still pay legal wages. By using 'independent' contractors fedex is actually reducing potential efficiencies they could obtain through integrating the ground side. Just in the potential of having only a single vehicle in each area in so much of the country would save billions of dollars. That is why UPS can compete with the low wage fedex drivers. If contractors are truly independent, there is NO legitimate interest for fedex in the wages being paid to delivery drivers. [/QUOTE]
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