Is there any reason for FedEx to keep contractors?

[bbsam]

Looks like the NLRB may be eliminating the gray area companies have enjoyed with contracting for decades. Kinda wonder what’s the point anymore.

Employers May Be Required to Bargain Under New NLRB Joint Employment Rule

On October 25 the National Labor Relations Board issued its Final Rule that ‎dramatically expanded the definition of joint employment…

www.schwabe.com

 

[Thebrownblob]

Looks like the NLRB may be eliminating the gray area companies have enjoyed with contracting for decades. Kinda wonder what’s the point anymore.

Employers May Be Required to Bargain Under New NLRB Joint Employment Rule

On October 25 the National Labor Relations Board issued its Final Rule that ‎dramatically expanded the definition of joint employment…

www.schwabe.com

Looks like the NLRB may be eliminating the gray area companies have enjoyed with contracting for decades. Kinda wonder what’s the point anymore.

Employers May Be Required to Bargain Under New NLRB Joint Employment Rule

On October 25 the National Labor Relations Board issued its Final Rule that ‎dramatically expanded the definition of joint employment…

www.schwabe.com

I think that would be a pretty big deal, and would certainly help even the playing field. A definite positive for workers.

 

[Fred's Myth]

Looks like the NLRB may be eliminating the gray area companies have enjoyed with contracting for decades. Kinda wonder what’s the point anymore.

Employers May Be Required to Bargain Under New NLRB Joint Employment Rule

On October 25 the National Labor Relations Board issued its Final Rule that ‎dramatically expanded the definition of joint employment…

www.schwabe.com

If a company is exposed to the same liabilities as their contractors, what point is there in having a contractor?

 

[zeev]

Fast Freddy not happy the mechanics are organizing and now the Ground plantation in jeopardy.

 

[bbsam]

If a company is exposed to the same liabilities as their contractors, what point is there in having a contractor?

Exactly

 

[bacha29]

Exactly

This could be the first step toward FXG contractors getting their own DOT operating authority allowing them to finally become true independent contractors.
It would appear that the only chance Fat Freddy has when it comes to preserving his little contractor plantation would be if the US Chamber of Commerce can tie the thing up in litigation for the next 30 years.
This will depend on the willingness of contractors to take this unexpected opportunity and actually use it to their benefit. But right now the class action lawyers are sharpening their tools.

 

[Mateo]

Fast Freddy not happy the mechanics are organizing and now the Ground plantation in jeopardy.

Vehicle and Gse mechanics?

 

[Fred's Myth]

This could be the first step toward FXG contractors getting their own DOT operating authority allowing them to finally become true independent contractors.
It would appear that the only chance Fat Freddy has when it comes to preserving his little contractor plantation would be if the US Chamber of Commerce can tie the thing up in litigation for the next 30 years.
This will depend on the willingness of contractors to take this unexpected opportunity and actually use it to their benefit. But right now the class action lawyers are sharpening their tools.

Or, it could be the death knell of the contractor system.

 

[yadig]

I’m waiting for dano to express his opinion. I’m sure he’s been told what we need to hear.

 

[It will be fine]

I don’t see this changing much at all. A contractor’s employees would still have to vote for a union. The contractor would have to keep the contract long enough for that union to sue to get FedEx classified as a joint employer to negotiate with. That sequence playing out in any reasonable timeline seems unlikely.

 

[yadig]

I don’t see this changing much at all. A contractor’s employees would still have to vote for a union. The contractor would have to keep the contract long enough for that union to sue to get FedEx classified as a joint employer to negotiate with. That sequence playing out in any reasonable timeline seems unlikely.

Sounds like you got it all figured out!

 

[It will be fine]

Sounds like you got it all figured out!

Is there anything I’m missing? Do you think a legal battle of this magnitude would play out quickly?

 

[bacha29]

Sounds like you got it all figured out!

He's right from the standpoint that the NLRB's more clearly defined definition of the joint employer rule will first have to be court tested and approved.
Contractors at this stage of what appears to be the beginning of the end for the FXG contractor network might be better off to take what they can get for their contract and get out now given the uncertainty and possibly lots of it is now being added to the witch's brew.

 

[yadig]

Is there anything I’m missing? Do you think a legal battle of this magnitude would play out quickly?

Who knows? I guess we’ll just have to follow the money..

 

[zeev]

Just another reason to stay away from contracting, advertising on Facebook and Instagram seem the height of desperation how many people are going to have the capital and knowledge to run this show and now another unknown variable.

 

[bbsam]

This could be the first step toward FXG contractors getting their own DOT operating authority allowing them to finally become true independent contractors.
It would appear that the only chance Fat Freddy has when it comes to preserving his little contractor plantation would be if the US Chamber of Commerce can tie the thing up in litigation for the next 30 years.
This will depend on the willingness of contractors to take this unexpected opportunity and actually use it to their benefit. But right now the class action lawyers are sharpening their tools.

That won’t happen. They’ve been infected with the control bug. They can’t get the level of control by trying to herd 6000 cats. Their level of discontent with lax safety, crappy uniforms, bad customer service and disappointed investors has never been higher. Having high turnover in subpar contractors won’t help the matter.

So if they want all that control, it’s going to cost. To get uniform compliance means being strong centrally. Only way to be assured of that is an employee model.

Can they pull it off? Maybe. Buy off the contractors with money they’ve held back In reduced contract valuations, bring average driver pay from $16/hr to $23, toss in a subpar benefit package to make it all look good and…Wall Steeet darlings!!! Drivers will be sedated for a while and give the company time to put out area specific talking points for why unions are the devil!.

 

[NC man]

Every time I see one of those FB ads I tell people to run fast and far in comments

 

[bbsam]

I don’t see this changing much at all. A contractor’s employees would still have to vote for a union. The contractor would have to keep the contract long enough for that union to sue to get FedEx classified as a joint employer to negotiate with. That sequence playing out in any reasonable timeline seems unlikely.

I think you’re looking at this in a vacuum. Contracts are worthless. Turnover is high. The vehicle values have tanked. Terminals like those in Milwaukee have been dumpster fires for years. FedEx is combining operations. The model is failing and there doesn’t seem to be much value in propping it back up.

 

[bacha29]

That won’t happen. They’ve been infected with the control bug. They can’t get the level of control by trying to herd 6000 cats. Their level of discontent with lax safety, crappy uniforms, bad customer service and disappointed investors has never been higher. Having high turnover in subpar contractors won’t help the matter.

So if they want all that control, it’s going to cost. To get uniform compliance means being strong centrally. Only way to be assured of that is an employee model.

Can they pull it off? Maybe. Buy off the contractors with money they’ve held back In reduced contract valuations, bring average driver pay from $16/hr to $23, toss in a subpar benefit package to make it all look good and…Wall Steeet darlings!!! Drivers will be sedated for a while and give the company time to put out area specific talking points for why unions are the devil!.

Points to what their entire objective has been right from the beginning.
It was to get you to spend your money so they didn't have to spend theirs on the parts of the business that are the most volatile and margin stressed while keeping the best parts of it for themselves and chained the individual to their DOT tags and to the task of hauling only their freight.

This was clearly evidenced by the fact that the contract contained no language that recognized contractor equity participation in the venture.

Clearly the best times have have come and gone and only the most rate sensitive shippers will be willing to deal with FDX.

On the other hand I was impressed with the number of FDX Freight doubles and 53's I saw out on the interstate yesterday. With Yellow gone there's simply not many LTL's left in that sector. Freight in the end might ended up the strongest of the OPCO's.

 

[bbsam]

Points to what their entire objective has been right from the beginning.
It was to get you to spend your money so they didn't have to spend theirs on the parts of the business that are the most volatile and margin stressed while keeping the best parts of it for themselves and chained the individual to their DOT tags and to the task of hauling only their freight.

This was clearly evidenced by the fact that the contract contained no language that recognized contractor equity participation in the venture.

Clearly the best times have have come and gone and only the most rate sensitive shippers will be willing to deal with FDX.

On the other hand I was impressed with the number of FDX Freight doubles and 53's I saw out on the interstate yesterday. With Yellow gone there's simply not many LTL's left in that sector. Freight in the end might ended up the strongest of the OPCO's.

The beginning of what? Don’t be mistaken. Ground was an easy investment to make good money for contractors. That’s evaporated in the last few years. Ground adopting an employee model, eliminating the contracts, and forcing its metrics onto drivers making 1/3 to 1/2 what UPS drivers make is still incredibly profitable. And isn’t that always the endgame?