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<blockquote data-quote="dmac1" data-source="post: 2330846" data-attributes="member: 60252"><p>I have always thought that using contractors to save money was false economy for the reasons you do, but Fred S seems to be personally invested in using contractors. He has proven that fedex doesn't care as much about quality simply by not paying Express drivers as much as their UPS counterparts earn. </p><p></p><p>Fedex uses cutrate vehicles and cut rate drivers. It proves that the intangibles of loyalty and dedication don't have much value. </p><p></p><p>As long as he can get away with settling lawsuits for less than the illegal action saved, he is doing what he thinks is right for stockholders. If using contractors until an illegal contract for nearly 20 years cost fedex $1 billion in settlements, but saved him $2 billion in costs, he comes out ahead. And the fact that it took 16 years to settle the IC/employee issue can only give Fred even more encouragement. This new ISP arrangment should save even more money than the IC model did, and probably take even longer in court, with a greater chance of Fred winning.</p></blockquote><p></p>
[QUOTE="dmac1, post: 2330846, member: 60252"] I have always thought that using contractors to save money was false economy for the reasons you do, but Fred S seems to be personally invested in using contractors. He has proven that fedex doesn't care as much about quality simply by not paying Express drivers as much as their UPS counterparts earn. Fedex uses cutrate vehicles and cut rate drivers. It proves that the intangibles of loyalty and dedication don't have much value. As long as he can get away with settling lawsuits for less than the illegal action saved, he is doing what he thinks is right for stockholders. If using contractors until an illegal contract for nearly 20 years cost fedex $1 billion in settlements, but saved him $2 billion in costs, he comes out ahead. And the fact that it took 16 years to settle the IC/employee issue can only give Fred even more encouragement. This new ISP arrangment should save even more money than the IC model did, and probably take even longer in court, with a greater chance of Fred winning. [/QUOTE]
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