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<blockquote data-quote="Ricochet1a" data-source="post: 574351" data-attributes="member: 22880"><p>You missed the point....</p><p> </p><p>Yes, they are covered under the NLRA. But... how are the drivers that work for a SINGLE contractor supposed to organize??? They can't organize as a collective, since they all work for different contractors. So bbsam's drivers would have to decide to sign union cards and petition for a union to represent them in their quest to get better compensation from him, NOT FedEx - good luck. OK, they have a union, of how many... 5 drivers. That's not a union. If they decide to strike against him, what will bbsam do? Hire more drivers and never look back. </p><p> </p><p>Now, if they were all employees of a single company, THEN they'd have some bargaining power. Why do you think Fred went through the charade of having independent contractors? First it was to keep Express under the RLA, second it was to prevent the Ground drivers from being able to organize successfully under the NLRA. This is called having your cake and eating it too. </p><p> </p><p>Express will still be under RLA, keeping out any unionization attempt and as long as Ground is operated with the IC model, it won't be unionized. </p><p> </p><p>All the UPS folks keep on talking about seeing two trucks and how inefficient it is. It is just the other way around, it is VERY COST efficient. One truck costs about $40,000 a year in compensation to operate and the other costs FedEx just a little less (driver compensation plus IC profit). FedEx can put two trucks on the road for about $75k a year. A SINGLE UPS truck costs about $90,000 a year in employee compensation to operate. Fred gets a lower cost of doing business AND keeps the Teamsters out of both operations. Having his cake and eating it too.</p><p> </p><p>There are some problems with the "cake" though. Customers see FedEx and think they are one in the same. They are not. They are starting to catch on, and it is causing Fred problems. Express Couriers aren't trying to smooth over differences any more (we realize it is against our self interest) and customers are getting very frustrated. Customers are learning FedEx isn't necessarily FedEx (I'm teaching them this every day). Part of Fred's cake is having the operations being legally separate, so he can use different labor laws to govern them; but he really wants customers to think they are seamless. </p><p> </p><p>By taking the "FedEx" brand, which was established by what is now "Express" and using it to describe everything Fred wants to get into has resulted in the brand suffering tremendously. Customers formerly refered to me as the "FedEx Courier", now I'm the Express driver. A change in semantics, but VERY important. FedEx is losing the brand prestige it once had as a result of Fred's applying it to everything.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 574351, member: 22880"] You missed the point.... Yes, they are covered under the NLRA. But... how are the drivers that work for a SINGLE contractor supposed to organize??? They can't organize as a collective, since they all work for different contractors. So bbsam's drivers would have to decide to sign union cards and petition for a union to represent them in their quest to get better compensation from him, NOT FedEx - good luck. OK, they have a union, of how many... 5 drivers. That's not a union. If they decide to strike against him, what will bbsam do? Hire more drivers and never look back. Now, if they were all employees of a single company, THEN they'd have some bargaining power. Why do you think Fred went through the charade of having independent contractors? First it was to keep Express under the RLA, second it was to prevent the Ground drivers from being able to organize successfully under the NLRA. This is called having your cake and eating it too. Express will still be under RLA, keeping out any unionization attempt and as long as Ground is operated with the IC model, it won't be unionized. All the UPS folks keep on talking about seeing two trucks and how inefficient it is. It is just the other way around, it is VERY COST efficient. One truck costs about $40,000 a year in compensation to operate and the other costs FedEx just a little less (driver compensation plus IC profit). FedEx can put two trucks on the road for about $75k a year. A SINGLE UPS truck costs about $90,000 a year in employee compensation to operate. Fred gets a lower cost of doing business AND keeps the Teamsters out of both operations. Having his cake and eating it too. There are some problems with the "cake" though. Customers see FedEx and think they are one in the same. They are not. They are starting to catch on, and it is causing Fred problems. Express Couriers aren't trying to smooth over differences any more (we realize it is against our self interest) and customers are getting very frustrated. Customers are learning FedEx isn't necessarily FedEx (I'm teaching them this every day). Part of Fred's cake is having the operations being legally separate, so he can use different labor laws to govern them; but he really wants customers to think they are seamless. By taking the "FedEx" brand, which was established by what is now "Express" and using it to describe everything Fred wants to get into has resulted in the brand suffering tremendously. Customers formerly refered to me as the "FedEx Courier", now I'm the Express driver. A change in semantics, but VERY important. FedEx is losing the brand prestige it once had as a result of Fred's applying it to everything. [/QUOTE]
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