Independent Contractor

TerryFXHD

Member
After driving Tractor/trailer for a number of years, I decided to buy my own. I signed a contract with a company under the following terms. They had the right to do an initial inspection of my tractor and annual inspections to follow. I had to display their decal, and no other company markings. I had a minimum amount of time the truck was to be able to move freight and could only move freight provided by them. I was required to provide non-trucking liability and my own physical damage and workers comp, but was able to buy it through a group they administered. They conducted DMV, drug tests etc. so on and so forth

This is standard owner-operator agreement. How is this not a scam but Ground is??
 

UpstateNYUPSer(Ret)

Well-Known Member
Are you required to follow all of the rules and regulations of your employer yet you are not considered to be an employee?

(BTW, I happen to like the ground business model)
 

MrFedEx

Engorged Member
After driving Tractor/trailer for a number of years, I decided to buy my own. I signed a contract with a company under the following terms. They had the right to do an initial inspection of my tractor and annual inspections to follow. I had to display their decal, and no other company markings. I had a minimum amount of time the truck was to be able to move freight and could only move freight provided by them. I was required to provide non-trucking liability and my own physical damage and workers comp, but was able to buy it through a group they administered. They conducted DMV, drug tests etc. so on and so forth

This is standard owner-operator agreement. How is this not a scam but Ground is??

The answer is "degree of control", as in Ground exerts far more control than the ordinary owner/operator scenario you describe. FedEx Ground drivers are de facto employees.
 

Cactus

Just telling it like it is
The answer is "degree of control", as in Ground exerts far more control than the ordinary owner/operator scenario you describe. FedEx Ground drivers are de facto employees.
Only classified that way because of Fred's buddies on Capitol Hill. The sole purpose is to keep the union out.
 

TerryFXHD

Member
The answer is "degree of control", as in Ground exerts far more control than the ordinary owner/operator scenario you describe. FedEx Ground drivers are de facto employees.

This is what I am trying to explain to you. I see no more control by FedEx to the ISP I now work for than I saw as an owner operator of a big rig. I am trying to enlighten you. My paycheck has the ISP's company name on it. If any of the terminal personel call me or try to talk to me at the station, I can refer them to my ISP and say nothing. Anything that happens on the road the ISP gets the first call.
 

MrFedEx

Engorged Member
Terry, you are wasting your time. I have tried to have the same conversations.

Who pre-screens the applicants and tells the contractor who to hire? FedEx. Whose management personnel run the terminals and hand-out discipline? FedEx. I could go on and on, but you clearly don't get it that the ISPs/contractors are just window dressing. The drivers get treated like employees and the expectations of them are those of employees.
 

bbsam

Moderator
Staff member
Who pre-screens the applicants and tells the contractor who to hire? FedEx. Whose management personnel run the terminals and hand-out discipline? FedEx. I could go on and on, but you clearly don't get it that the ISPs/contractors are just window dressing. The drivers get treated like employees and the expectations of them are those of employees.
I think the OP's point is that Fedex isn't doing anything with Ground that isn't common with many other OTR carriers.
 

CJinx

Well-Known Member
Who pre-screens the applicants and tells the contractor who to hire? FedEx.
They're free to hire whoever they want. Fedex approves them for driving. They could be the contractor's secretary or wrench monkey or manservant for all we care.
Whose management personnel run the terminals and hand-out discipline? FedEx.
Of course we run the stations; they are our stations to run. We also cannot 'discipline' a driver because they don't work for us. The most management can do is give the contractor hell and/or try to DQ the driver.
 

Cactus

Just telling it like it is
Not really. It's just as I've always said. If you want the contractor model to change significantly, get the law changed. You keep on the symptom rather than the cause.
You need a fat wallet and political buddies like Fred has to get the laws changed to your satisfaction. Or have you not been paying attention?
 

TerryFXHD

Member
Well, now I have to admit he is correct about handing out discipline. I 27'd a box yesterday and this morning the SM gave me a spanking in front of the whole belt!
 

bbsam

Moderator
Staff member
Well, now I have to admit he is correct about handing out discipline. I 27'd a box yesterday and this morning the SM gave me a spanking in front of the whole belt!
incorrect. You have a pushover for a contractor. We had a SM in our region fired for repeating that offense. In fact, the company hunts SM's like that because it's what causes lawsuits.

Our SM once called me at 8pm because one of my drivers refused to go back and reattempt a delivery. So I said, "So you called MY driver, gave HIM AN ORDER, he said no and now YOU want ME to clean up YOUR friend'n mess?!". Haven't had that pop up ever since. My drivers are more than happy to direct management in my direction and I am more than happy to discuss issues with management. But the model is what it is and they don't get to cut corners because it's "easier". Get a track record of a SM pulling that crap and guess who's going to be calling for his head? The legal department. It's a clear violation and one that Pittsburgh can't let go unattended.

Your contractor's response should have been, "So what was our service percentage yesterday? Because if it was over 99%, we really don't have a lot to talk about with one code "27". And yes, the MD and Contractor Relations would back the contractor.
 

STFXG

Well-Known Member
Agree with BB. It takes one good argument with your contractor telling management not to talk to his drivers.

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