Contractor to ISP conversion

scrappy203

New Member
With the recent court ruling, it is a near certainty CA, OR, and WA will convert to the ISP model. It would be helpful to hear from business owners that have already gone through these conversions in other states. Here a few questions it would be good to have information on :
- How did Fedex handle the smaller contractors (<3 PSA's)? Was there any payout (from FedEx involved)? If so, how much?
- How did the smaller contractors cope with the change - did they combine forces so to speak? Did they sell to larger contractors?
- What was the effect on prices for route sales (did they go down or up)?
- etc.
 

STFXG

Well-Known Member
There's no certainty. California won't change at all. OR and WA are possible, but I doubt it. It's an old lawsuit. The changes needed have already been made.
 

scrappy203

New Member
Well, at least one Ground depot in WA has already held a contractor meeting letting the contractors know they're going to be converting to an ISP model - but they didn't have many answers beyond that.
 

Catatonic

Nine Lives
What is a FedEx Ground Independent Service Provider?

Go here to get FedEx explanation:
http://www.buildagroundbiz.com/documents/Grow with FedEx Ground Brochure_090111.pdf

Under the ISP Model, each ISP Candidate (in other words, a business seeking to enter into an ISP Agreement)
negotiates an ISP Agreement with FedEx Ground for a CSA. The ISP Agreement is a legally-enforceable contract
that sets forth the business objectives of the ISP and FedEx Ground and summarizes the rights and obligations of
both parties. Many of the provisions of the ISP Agreement are based on requirements that are mandated by the U.S.
Department of Transportation and its corresponding regulations.
Under the ISP Agreement, an ISP has the flexibility to negotiate many contract terms that best fit business and
service area needs. For example, ISP Candidates have the option to choose whether to use FedEx Ground logos on
all or some vehicles and whether to outfit employee-drivers in FedEx Ground uniforms, in exchange for negotiated
brand promotion fees.
 

MrFedEx

Engorged Member
There's no certainty. California won't change at all. OR and WA are possible, but I doubt it. It's an old lawsuit. The changes needed have already been made.

Read the post from the CA contractor in the other thread. You would seem to be wrong, which isn't unusual.
 

STFXG

Well-Known Member
I don't believe it. FedEx doesn't send out emails about legal stuff. It would be a meeting in the morning to discuss the possibility, followed by a packet of information that local management will read, that packet of info posted to mygroundbiz.

But what do I know.
 

dvalleyjim

Well-Known Member
CA is going ISP. I have worked as a driver for an ISP in my new state. It ain't a good deal. I now have a new better job and am out of Fed Ex. 18 years as a CA contractor. Almost 2 years as a home delivery driver. 20 years with this crony capitalist company. I still wan't my $ from the Class Action.
 

STFXG

Well-Known Member
Yeah I saw that. NV switching as well. I was wrong. What's new, right?

Should've read some articles. Hadn't read anything since the court decision.
 
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gixxer squid

Well-Known Member
To: All affected authorized officers

From Sean O’Connor: Moving to the Independent Service Provider agreement in select states
Time, information, options and incentives will be provided to assist with transition

In light of legal and regulatory developments in several states – including the recently published U.S. Court of Appeals for the Ninth Circuit decision – we are announcing a transition to the Independent Service Provider Agreement (ISPA) for businesses providing pickup and delivery service (including Home Delivery) that are domiciled in California, Oregon, Washington, Nevada and the Yuma, Ariz., colocation.

{{text removed - please don't copy / paste copyrighted content on our forum}}
 
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gixxer squid

Well-Known Member
There you go boys. Thats the email. Sorry to rain on your parade STFXG.

I truly am trying to keep a positive attitude but seems like we are a dead horse continually getting beat when we are already down….
 
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Cactus

Just telling it like it is
"We recognize that change is never easy*, and we are committed to providing you as much information as we can, as soon as we can. In the meantime, please know that the ISPA remains true to the entrepreneurial spirit of our business model, and has proved to be successful in 17 states, where more than 800 businesses successfully transitioned to the ISPA and are providing outstanding and reliable service."

*for you guys but for us, were gonna get wealthier, not you. But you'll get to work harder.
 

gixxer squid

Well-Known Member
I like the comment that "proven successful in 17 states…."

Did the contractors even have a choice, successful for who (don't answer, haha)
 

gixxer squid

Well-Known Member
Good luck gixxer. I don't mind being proven wrong. Sucks to hear that news though.

No worries, we are all wrong from time to time. I would love to know more from other ISP providers the ins and outs, and not from the propaganda machine either. I can be PM'd with a number that I can call someone to get info from. If there is any negotiation I would like to prepare myself for the best possible scenario and package if thats even possible…..
 

CJinx

Well-Known Member
How did the smaller contractors cope with the change - did they combine forces so to speak? Did they sell to larger contractors?
Oh boy. YES - we had a few contractors form "multi-headed monster" ISP corps. They are a nightmare to deal with. Only one of them is recognized as the 'owner' but the others like to think they're owners as well and hound station personnel to make changes that only the owner is allowed to do. We don't have any left today because they eventually fail due to infighting.

The successful ones were the former contractors who sold their routes and became drivers or left the business entirely.
 

Steve Mawhorter

New Member
With the recent court ruling, it is a near certainty CA, OR, and WA will convert to the ISP model. It would be helpful to hear from business owners that have already gone through these conversions in other states. Here a few questions it would be good to have information on :
- How did Fedex handle the smaller contractors (<3 PSA's)? Was there any payout (from FedEx involved)? If so, how much?
- How did the smaller contractors cope with the change - did they combine forces so to speak? Did they sell to larger contractors?
- What was the effect on prices for route sales (did they go down or up)?
- etc.
Did anyone respond to your post?
 
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