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Express / Ground merger
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<blockquote data-quote="dmac1" data-source="post: 3027205" data-attributes="member: 60252"><p>Vehicles aren't a problem at all. Fedex would not need to buy a new fleet or buy contractors' vehicles. It is perfectly legal for a company to require that employees use their own vehicles, provided that the company still pays at least minimum wage plus OT, etc AFTER all vehicle expenses are reimbursed. The original 'contract' was determined to be an 'employment' contract, and the so-called contractors were determined to be employees almost everywhere. Fedex could use nearly the same contract, except for ensuring drivers are paid at least minimum wage after expenses. If fedex wanted to change without buying a fleet, I'm sure they would allow current drivers to purchase/rent/lease vehicles contractors currently own from those contractors, and those drivers could become employees of fedex instead of employees of contractors.</p><p></p><p>Fedex would certainly have a lot more liability if one of those vehicles was determined to be unfit and had caused an accident or a death. But they have insurance for that, and could perform tighter vehicle maintenance checks.Eventually, fedex could replace those older vehicles, and gradually own the entire fleet.</p><p></p><p>It would be difficult for fedex to use contractors for express, since express has a lot of time specific deliveries. That and the fact that fedex wants fedex drivers in uniforms and fedex vehicles as advertising the brand make it harder to legally use contractors for express. </p><p></p><p>I still think that at some point fedex will be found to be joint employers of drivers hired by 'contractors.' I think that limiting vehicles to only carrying fedex shipments while on fedex duty presents a legal issue to be determined at some future point. Another issue is requiring that contractors have a minimum number of areas/stops.Requiring that a so-called 'independent contractor' hire employees is more control, and if a 'contractor' want to hire sub'contractors to make deliveries, and do it legally, a truly independent business would be able to do so. Fedex still exercises an inordinate amount of control of the 'independent' businesses, and eventually it will come back on them. </p><p></p><p>Only as long as Fedex manages to keep these contractors largely satisfied can they continue to get away with the current system. They will be willing to fight individual contractors and settle cases occasionally, but eventually, the cost of keeping the current system will catch up to using an all-employee workforce.</p></blockquote><p></p>
[QUOTE="dmac1, post: 3027205, member: 60252"] Vehicles aren't a problem at all. Fedex would not need to buy a new fleet or buy contractors' vehicles. It is perfectly legal for a company to require that employees use their own vehicles, provided that the company still pays at least minimum wage plus OT, etc AFTER all vehicle expenses are reimbursed. The original 'contract' was determined to be an 'employment' contract, and the so-called contractors were determined to be employees almost everywhere. Fedex could use nearly the same contract, except for ensuring drivers are paid at least minimum wage after expenses. If fedex wanted to change without buying a fleet, I'm sure they would allow current drivers to purchase/rent/lease vehicles contractors currently own from those contractors, and those drivers could become employees of fedex instead of employees of contractors. Fedex would certainly have a lot more liability if one of those vehicles was determined to be unfit and had caused an accident or a death. But they have insurance for that, and could perform tighter vehicle maintenance checks.Eventually, fedex could replace those older vehicles, and gradually own the entire fleet. It would be difficult for fedex to use contractors for express, since express has a lot of time specific deliveries. That and the fact that fedex wants fedex drivers in uniforms and fedex vehicles as advertising the brand make it harder to legally use contractors for express. I still think that at some point fedex will be found to be joint employers of drivers hired by 'contractors.' I think that limiting vehicles to only carrying fedex shipments while on fedex duty presents a legal issue to be determined at some future point. Another issue is requiring that contractors have a minimum number of areas/stops.Requiring that a so-called 'independent contractor' hire employees is more control, and if a 'contractor' want to hire sub'contractors to make deliveries, and do it legally, a truly independent business would be able to do so. Fedex still exercises an inordinate amount of control of the 'independent' businesses, and eventually it will come back on them. Only as long as Fedex manages to keep these contractors largely satisfied can they continue to get away with the current system. They will be willing to fight individual contractors and settle cases occasionally, but eventually, the cost of keeping the current system will catch up to using an all-employee workforce. [/QUOTE]
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