Fedex Ground drivers own the trucks, pay all operating costs and get no company benefits. No vacation, no sick days, no insurance, no overtime, nothing! The only benefit you get is money.
"They are paid on a complicated piece-rate formula based on how many pickups and deliveries they make, with bonuses for good service. Drivers can make $40,000 to $70,000 a year. A FedEx contract generally covers one route, but it is possible for one person to own up to four contracts, which can raise the earning potential to more than $100,000 per year. Because of this existing contracts have become a commodity in and of themselves...sometimes bought and sold like businesses for as much as $30,000 plus.
Contract drivers go through an initial two-week training program and then are on their own. The company does not supervise their daily routines, but does conduct customer satisfaction surveys. The business is strictly results oriented...if the customers are happy that is all that counts."
- FedEx Ground - Pros and Cons
Fed Ex Ground Pros:
Drivers can expand their business by hiring their own employees
Income can go over $100,000 with multiple contracts or routes
A sense of independence, working for yourself and managing yourself
Working "harder and smarter" can make you more money
Contractors manage their own business
Drivers are not monitored and are self directed
FedEx Ground Cons:
No benefits, no overtime pay, no sick time, no insurance
Drivers pay for vehicle, gas, supplies, insurance, and everything else
No company retirement, seemingly less stable environment
No Teamsters contract or collective bargaining
Drivers have only one client: FedEx
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- UPS - Pros and Cons
UPS Pros:
Drivers are employees with security and benefits
Tightly managed and controlled schedule and environment
Company guides improvement and efficiency overall
Teamsters contract and collective bargaining
Average tenure for drivers is more than 16 years
Nearly all drivers are hired from within the company
UPS Cons:
Unless moving up the "corporate ladder" drivers salaries cap out around $70,000
Tightly managed and controlled schedule and environment
Teamsters can lead to a strike and cause work disruption
It can take 4 to 12 years to get a job as a driver after joining the company
http://www.braunconsulting.com/bcg/newsletters/winter2004/winter20041.html