Trucks are all being branded purple and orange.
Ground to absorb Express
- Thread starter dvalleyjim
- Start date
Future
Victory Ride
So r people ...go look outside
It will be fine
Well-Known Member
They accelerated the timeline for ISP transition and overlapped service areas by about a year.
zeev
Well-Known Member
You are so correct, no reason to pay anybody anything period.
dvalleyjim
Well-Known Member
Not happening until Ground and HD merge by 2020. Then if the ISP model is still holding up and the numbers work out this may begin to happen.
The Youngin' Of It All
Well-Known Member
If the model is still holding up. So far I know of 3 ISPs in terminals around me who have lost their contract and we haven't even gone 1 full year yet. How much more do you expect that to increase?
Were they terminated, defaulted or simply ran out of cash?
dvalleyjim
Well-Known Member
I mean if it withstands any legal challenges (lawsuits). And after the lawyers finish with the PSA model I think they will start going at the ISP model.
The Youngin' Of It All
Well-Known Member
They were terminated and disqualified of course. Tried to collapse routes in rural areas in the middle of nowhere and had little to no overlap. Kid who used to work for me moved and got a job with him. In less than 2 weeks there he saw guys quitting left and right and they forgot to pay him too. Operation was a mess. Sometimes it's FedEx and sometimes it's the contractor. Trucks were taken off property and parked out by the road and he had 24 hours to get them all or have them towed and impounded.
The Youngin' Of It All
Well-Known Member
That's the problem Jim. It's a failing model and a complete violation of our rights. All they did was delgate tasks, like we do for BC's. They didn't change any control. The D.O.T. number is the last card in their hand. Once that's gone the cookie can only crumble two ways. Indirectly by controlling that number it's opening up the door for them to directly control all aspects of the operation and what goes into it. They just won't tell it to you that way. When something goes wrong they want no part of it.
The Youngin' Of It All
Well-Known Member
I do believe they will be sued again down the road under ISP. Don't get me wrong, I love my job and my employees but what gives X the right to pull a random drug test on a person who "does not work for them" and then have it directly effect my operation and leads to service failure and then not take the blame. Fortunately I had a plan in place anyway but what if I didn't?
Oldfart
Well-Known Member
They want to make sure the person delivering their packages is not smoking a "fattie" while doing their job. Aren't all DOT couriers subject to random and post accident drug test?
The Youngin' Of It All
Well-Known Member
I'm very well aware of this. I'm talking about directly impacting ones business and using that against them as a breach of contract for service failure because of their own doing to begin with. As stated before I had plans and resources in place. But what if I didn't? You guys have endless supply of drivers at disposal over at Express compared to Ground's pool. Why can't I apply for my own D.O.T. number if that's the case and control what happens under my number myself?
Vehicles under 10000 lbs don’t have DOT numbers. Why do those drivers need DOT cards?
With most if not all class actions having been settled with no admission of quilt the result is that it has clearly emboldened them and are simply reestablishing the same strict command and control they've always used in the past.
Hopefully it will serve as a reminder of the fact that they are NOT in the business of building an enterprise for YOU. They are in the business of getting that damn box from point A to point B at the lowest possible cost.
Could it be that the real reason for switching to purple and orange might have something to do with a possible fear of an eventual collapse of the Ground model requiring Express being pressed into service as a caretaker until Ground can be restructured or absorbed?
These days you can't completely rule out anything.
It took 12 years to settle the last set of lawsuits that covered from 1999 until 2013(?). During that time, fedex saved tens of millions of dollars even after settlement costs. The IRS lost interest in pursuing them at all, the NLRB was stymied, and for some reason even the states lost interest. Sure, fedex ended up reimbursing some costs for uniforms, scanners, etc, but the paid nothing as far as the FICA taxes they owed on our full compensation. At $100k gross compensation, their share was at least $7000 per year per 'contractor.'
Perhaps with people now 'investing' huge sums to buy only the right to service a contract that can easily be cancelled, with little chance of any recovery if fedex unilaterally decides to cancel the contract for ANY or NO reason, someone(S) might find it worth filing new lawsuits to recover what might have been their life's savings, or whatever they had in a retirement account. The contract only allows an award of lost profit, not total loss, if you are fired and the arbitrator decides you were wrongfully terminated. Then they will look at your tax returns to determine what you profit per month, and give you that much multiplied by the remaining time you have under the contract.
At renewal, they have no requirement to give you anything. Anyone buying such a business is only buying a limited term right until the end of the contract term. Eventually, no one will want to pay a dime for these 'businesses' when the risk is so high. Smart people won't even want to invest in buying a vehicle when fedex can unilaterally cancel your income with no notice.
Perhaps with people now 'investing' huge sums to buy only the right to service a contract that can easily be cancelled, with little chance of any recovery if fedex unilaterally decides to cancel the contract for ANY or NO reason, someone(S) might find it worth filing new lawsuits to recover what might have been their life's savings, or whatever they had in a retirement account. The contract only allows an award of lost profit, not total loss, if you are fired and the arbitrator decides you were wrongfully terminated. Then they will look at your tax returns to determine what you profit per month, and give you that much multiplied by the remaining time you have under the contract.
At renewal, they have no requirement to give you anything. Anyone buying such a business is only buying a limited term right until the end of the contract term. Eventually, no one will want to pay a dime for these 'businesses' when the risk is so high. Smart people won't even want to invest in buying a vehicle when fedex can unilaterally cancel your income with no notice.
The Youngin' Of It All
Well-Known Member
BBSAM if you don't mind me asking what vehicles do you run in your fleet? I'm running all vehicles that are well over 10,000 lbs. Including a p1000 for HD. When I first got them there were previous contractors trying to underweight the vehicles so I reregistered them properly because it isn't worth the risk and liability. Sprinters are obsolete as far as I'm concerned. With X's oversize and bulk what vehicle can you use under 10,000 lbs and still run efficiency daily? Even before a driver applies he has to have a medical card. How can they enforce that if they don't even know what he's going to drive?
In addition, there is another class action by drivers of ISPs (Case 3:17-cv-00987-WWE) in Connecticut who are claiming fedex employee status who have a pretty strong case, considering that it is really fedex who directs and controls them, sometimes directly, sometimes indirectly through demands made on the ISP.
This may lead to either a truly independent ISP running each terminal under their own DOT number, or could lead to a co-employment situation, which could negate any benefit fedex is getting using ISP. That could lead to fedex ground merging with express using an all employee workforce. But it will likely be at least another 10-15 years to get this battle settled.
This may lead to either a truly independent ISP running each terminal under their own DOT number, or could lead to a co-employment situation, which could negate any benefit fedex is getting using ISP. That could lead to fedex ground merging with express using an all employee workforce. But it will likely be at least another 10-15 years to get this battle settled.
I run a pickup truck, two gmc p500 box trucks, and a half ton cargo van all under 10000 lbs.
Express has non-DOT drivers.
UpstateNYUPSer(Ret)
Well-Known Member
To give them the flexibility to drive whatever size vehicle(s) that particular contractor has in his/her fleet?
