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Fed Ex Media Campaign - Gloves coming off
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<blockquote data-quote="PobreCarlos" data-source="post: 545786" data-attributes="member: 16651"><p>JimJimmy;</p><p> </p><p>I mostly agree with what you're saying. However, I'm not so sure about the contractor model dying. In terms of a cost/benefit ratio, that MIGHT (again, "might") continue to make business sense, particularly if FedEx is able to continue switching from the single-driver contractor model to the multiple-employee contractor model as it's been doing since before the California court decisions of a few years back. Bear in mind that, even if the employees "go union", FedEx can simply dispose of the contractors that employ them (much as Airborne did a few years back) and hire another contractor that is more amiable.</p><p> </p><p>Not saying that's the way it should be, but that it's the way things might turn out. And, truthfully, it's a tough nut to crack, particularly since there's the impression that the customer base doesn't see a major differential between the employee and contractor model in terms of service.</p><p> </p><p>Lastly, I think the reason that FedEx hasn't turned the Express side to contractors is that (1) they hadn't figured the "contractor" lesson out until they learned it from RPS, and (2) once they DID figure it out, it was too late because they already had "employees" in place which couldn't be arbitrarily replaced (easily and inexpensively, at least) even under the prevailing Railway Act labor law. If they started over now, I'm fairly confident that FDX would probably pursue the contractor model at "Express" as well.</p></blockquote><p></p>
[QUOTE="PobreCarlos, post: 545786, member: 16651"] JimJimmy; I mostly agree with what you're saying. However, I'm not so sure about the contractor model dying. In terms of a cost/benefit ratio, that MIGHT (again, "might") continue to make business sense, particularly if FedEx is able to continue switching from the single-driver contractor model to the multiple-employee contractor model as it's been doing since before the California court decisions of a few years back. Bear in mind that, even if the employees "go union", FedEx can simply dispose of the contractors that employ them (much as Airborne did a few years back) and hire another contractor that is more amiable. Not saying that's the way it should be, but that it's the way things might turn out. And, truthfully, it's a tough nut to crack, particularly since there's the impression that the customer base doesn't see a major differential between the employee and contractor model in terms of service. Lastly, I think the reason that FedEx hasn't turned the Express side to contractors is that (1) they hadn't figured the "contractor" lesson out until they learned it from RPS, and (2) once they DID figure it out, it was too late because they already had "employees" in place which couldn't be arbitrarily replaced (easily and inexpensively, at least) even under the prevailing Railway Act labor law. If they started over now, I'm fairly confident that FDX would probably pursue the contractor model at "Express" as well. [/QUOTE]
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