Fedex to pay $228 million to settle independent contractor case

UpstateNYUPSer(Ret)

Well-Known Member
I think the courts already ruled against the old model in California. This is a settlement for the damages for the rest of the drivers. Probably a couple drivers sued and won and they settle everyone else out of court since there's no point in continuing to go to court for each case.

In a class action lawsuit the lead plaintiffs generally receive much more than the rest of the claimants.
 

gixxer squid

Well-Known Member
Yes, Unfortunately still here, not by choice though.

My 02 cents, we are owned by fedex, always will be so move on if you don't like. Don't care how many PSA/ ISP whatever you wanna call it. We don't own :censored2: except the trucks that are worthless to anyone else except fedex.

Recently had fedex maintenance honcho come through and tear just about every contractor in the terminal a new a hole in preparation for our ISP negotiations LOL, regarding getting trucks up to date.

They dangled the carrot in front of us jack asses and gave 5k to void contract last OCT, not like we had a choice, and then we have had to repaint and decal just about every truck which a few were painted a few years ago, spending now 15-20k on 8 trucks to meet their guidelines.

So why have the trucks been fine to deliver before but now fedex needs to look brand-new??

We had a driver suspended, management calls us in before the day even over asking the broken record question...

'WHAT IS YOUR PLAN? ' hey :censored2:, supposedly your not my boss, so its none of your business what my plan is.....

Sorry, but no one can or should even try to convince me that we are independent service contractors....
 

gixxer squid

Well-Known Member
Here's the essence of FedEx Ground scam. FDX passes off all possible costs to the contractor, and then simultaneously controls the drivers as though they were employees. You, the contractor, get a decent amount in return for FDX just killing-it overall with their profit margins. When are you going to understand that you are just there to pay Fred's bills and make it seem like you run the business...when you don't. You're just Fred's mechanic and overseer.


Nothing more to say.......
 

gixxer squid

Well-Known Member
BTW, has anyone else been having their worker comp rates change each month at the whim of Marsh with no explanations, just "well rates have just gone up...."

Expenses are in no way staying in line with income and we run a very tight ship....... Our ISP rates straight said in our meeting, "Don't be asking for more money cause your not going to get it in this ISP transition."

Well don't call it negotiations than dumbs, Just say this is what we are going to give you, take it or leave it. Been trying to leave it the last 9 months........Cant find any dummies out there yet......
 

MrFedEx

Engorged Member
Yes, Unfortunately still here, not by choice though.

My 02 cents, we are owned by fedex, always will be so move on if you don't like. Don't care how many PSA/ ISP whatever you wanna call it. We don't own :censored2: except the trucks that are worthless to anyone else except fedex.

Recently had fedex maintenance honcho come through and tear just about every contractor in the terminal a new a hole in preparation for our ISP negotiations LOL, regarding getting trucks up to date.

They dangled the carrot in front of us jack asses and gave 5k to void contract last OCT, not like we had a choice, and then we have had to repaint and decal just about every truck which a few were painted a few years ago, spending now 15-20k on 8 trucks to meet their guidelines.

So why have the trucks been fine to deliver before but now fedex needs to look brand-new??

We had a driver suspended, management calls us in before the day even over asking the broken record question...

'WHAT IS YOUR PLAN? ' hey :censored2:, supposedly your not my boss, so its none of your business what my plan is.....

Sorry, but no one can or should even try to convince me that we are independent service contractors....


Great post. It's information like this that proves just how dependent FedEx Ground is on FDX Corporate. They are joined at the hip, and to pretend otherwise is preposterous. I especially like them calling you about "your" suspended driver.

What an effing joke.
 

M I Indy

Well-Known Member
This is only the beginning! Unfortunately for those still there in all divisions, this will come out of your butts. IWBF is a math genius! Amazing that all 2300 EMPLOYEES worked from 2000 to 2007 in his equation, of course they did, lol. Get real, it's over! Many states already are already or will be revamping their classification policies, and the lawyers asking for the changes are getting a test approved, that is not good for the Ex model as ISP or contractor. Problem for Ex is this test is the one used for state employees, contractors, etc. so Judges so far have had no problem with giving a unilateral decision for all. Once again, Ex disagreed with the decision, but of course doesn't bother to elaborate, just settles like "Oh well! Bummer". Just like a pick pocket doesn't know how your wallet ended up in their hand.
 

bbsam

Moderator
Staff member
Yes, Unfortunately still here, not by choice though.

My 02 cents, we are owned by fedex, always will be so move on if you don't like. Don't care how many PSA/ ISP whatever you wanna call it. We don't own :censored2: except the trucks that are worthless to anyone else except fedex.

Recently had fedex maintenance honcho come through and tear just about every contractor in the terminal a new a hole in preparation for our ISP negotiations LOL, regarding getting trucks up to date.

They dangled the carrot in front of us jack asses and gave 5k to void contract last OCT, not like we had a choice, and then we have had to repaint and decal just about every truck which a few were painted a few years ago, spending now 15-20k on 8 trucks to meet their guidelines.

So why have the trucks been fine to deliver before but now fedex needs to look brand-new??

We had a driver suspended, management calls us in before the day even over asking the broken record question...

'WHAT IS YOUR PLAN? ' hey :censored2:, supposedly your not my boss, so its none of your business what my plan is.....

Sorry, but no one can or should even try to convince me that we are independent service contractors....
"What is your plan?"

I love that question. My answer is, "I plan to fail miserably."

I'd have to fail miserably for a very long time to have the Agreement in any trouble. When push comes to shove, contractor relations will actually back up an ISP's "right to fail".
 

It will be fine

Well-Known Member
"What is your plan?"

I love that question. My answer is, "I plan to fail miserably."

I'd have to fail miserably for a very long time to have the Agreement in any trouble. When push comes to shove, contractor relations will actually back up an ISP's "right to fail".
The only time they ask me that is right before peak, but it makes sense then.
Gixxer, you can pretty much ignore them on vehicle appearance. It's at your discretion to maintain your trucks at a standard consistent to customer expectations. They've been hassling me for 4 years about the same rims and some mirrors being rusted on the back. I say, "thanks, I'll get right on it." I haven't done a thing and have no intention to and they still pay me for it. Press them on providing an actual standard beyond what some dude from maintenance says on any given day. They won't provide one so it goes back to your discretion. It always ruffles the feathers of new managers but there's nothing they can do about it.
 

FedGT

Well-Known Member
How are the non ISP states? Are they all pushing toward ISP model?

New member here, got into ground a little over 2 years ago. Finally have some time to jump on these boards again so hopefully I can add a little here and there.
I'm in a terminal that is still IC and yes they are pretty much all going toward the ISP model. They have been making a push to put pressure on single van operators to weed them out or if they are good contractors asking them if they have the means to expand.
Btw new ISP regulations that I have been hearing are 5 PSAs or 500+ stops opposed to 3 PSAs. They want at least one person out of truck if not 2+ I am sure for contingency plans as well as making the business look more legitimate.
 

MrFedEx

Engorged Member
That is one vote. It seems I'm reading that some of your peers don't agree though or this lawsuit wouldn't have existed. From my readings I'd say it isn't 100% either way, surprise, but I seem to read that more people rather be a full employee than a contractor. Now there are large discrepancies in what contractors can make in various sectors. It seems in package delivery it is low wages, however in things like systems programmers, it could be $100's of dollars per hour. So I can see those enjoying the higher end of the scale preferring to be a contractor.

Why do you prefer being a contractor?

This settlement is a drop in the bucket to FDX, and eventually, Ground will be all ISP. Sammy thinks that ISP will always be legal and that the model is bullet-proof. FDX runs the show, and anybody who has ever worked for an FDX opco will tell you it's all about control and micromanagement.

Fred is happy to pay the ISPs a decent amount, but FDX retains the real control. Smith doesn't want anything happening to his 17-18% profit margin at Ground.
 

Cactus

Just telling it like it is
This settlement is a drop in the bucket to FDX, and eventually, Ground will be all ISP. Sammy thinks that ISP will always be legal and that the model is bullet-proof. FDX runs the show, and anybody who has ever worked for an FDX opco will tell you it's all about control and micromanagement.
Whether it's IC/ISP it's all still smoke and mirrors. Smith lives for total control no hiding behind some ISP title is gonna change that.
 

It will be fine

Well-Known Member
This settlement is a drop in the bucket to FDX, and eventually, Ground will be all ISP. Sammy thinks that ISP will always be legal and that the model is bullet-proof. FDX runs the show, and anybody who has ever worked for an FDX opco will tell you it's all about control and micromanagement.

Fred is happy to pay the ISPs a decent amount, but FDX retains the real control. Smith doesn't want anything happening to his 17-18% profit margin at Ground.
It's not that the model is bullet proof. It's certainly stronger and less likely to be challenged. The biggest take away from settlements like this is, even if FedEx is in the wrong a penalty like this is not a discouragement. They'll pay this penalty, tweak the model again and keep rolling. It's not like congress is going to pass any laws limiting contractor designations anytime soon.
 

M I Indy

Well-Known Member
Not congress responsibility, individual states will determine status through their classifications. What happens when Ex can't pass a states test with their model? Just pay the penalty and keep rolling? How many will put up the money to contract with a company that deceived the contractors for years? Sure, there are suckers born every minute, but, most of those suckers aren't carrying a couple hundred thousand to purchase a tenuous operation. Gixxer can't find one, and that situation may soon be coming to you. Media fueled public perception built Ex, over the next few years it
may kill them.
 

bbsam

Moderator
Staff member
Not congress responsibility, individual states will determine status through their classifications. What happens when Ex can't pass a states test with their model? Just pay the penalty and keep rolling? How many will put up the money to contract with a company that deceived the contractors for years? Sure, there are suckers born every minute, but, most of those suckers aren't carrying a couple hundred thousand to purchase a tenuous operation. Gixxer can't find one, and that situation may soon be coming to you. Media fueled public perception built Ex, over the next few years it
may kill them.
Gixxer isn't looking in the right places.
 

M I Indy

Well-Known Member
You may be right, he is probably looking for decent, upstanding US citizens.That is a dwindling group at ground. Probably should advertise abroad, with Somali pirates and the like, right?
 

bbsam

Moderator
Staff member
You may be right, he is probably looking for decent, upstanding US citizens.That is a dwindling group at ground. Probably should advertise abroad, with Somali pirates and the like, right?
Almost. Investor types. We've seen two sold in 9 months.
 

FedGT

Well-Known Member
Two larger contractors were bought out within two months of listing them in our terminal $700k and $800k and a couple singles as well. There are many, many buyers if you are in the right areas
 

Slick silver

Well-Known Member
When I was at ground years back, I watched as contractors would buy out other contractors. Eventually years down the road, I can still see each ground terminal be run by one single contractor. It's like a game of monopoly, eventually there is only one winner.
 

gixxer squid

Well-Known Member
Great post. It's information like this that proves just how dependent FedEx Ground is on FDX Corporate. They are joined at the hip, and to pretend otherwise is preposterous. I especially like them calling you about "your" suspended driver.

What an effing joke.

Its the system, our managers are decent. However, they are on the reward system with DNA (did not arrive/attempt) which I am assuming you all know what that means. If they keep there 98 or 99% for the terminal they are rewarded. I believe they don't personally care about customer service from the heart but its all about their bonus but they discuss as truly caring about the customers package. Lets cut through the crap and be real now.....
 
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