Revisiting the Legal Concept of "Independent Contractor"

M I Indy

Well-Known Member
I couldn't be happier for how much better it is today for Ground employees. Point I am trying to make is if they did it then the way they do it now, would profit and growth accelerated at same rate? Bought(?) model from RPS, reconfigured it. If they were so sure it wasn't illegal why file Safe Harbor from IRS? Why advertise back then "control your destiny", "be your own boss" when it's not true. Why have 40+day NLRB hearings, when norm is 3-5 days? Ground grew and profited illegally back then on workers, now with market share they are easing up, when some other company could have stepped in and filled void. Director of contractor relations testified some contractors weren't "qualified" to become multiples in CA case, what was criteria and according to who? Maybe Fed Ex wasn't "qualified" to implement the scam, yet was given the opportunity because of our laws. You don't know if you don't try, you can't grow if you're not allowed to try. I would rather try and fail, than to never have the opportunity to try. Requirements=control, and Fed Ex is full of too many requirements! Courts settle because Fed Ex threatens to drag out any negative decision and tie up courtrooms, too bad they spend so much on legal retainer fees, and so little on the people that really do the job for them. How much more would you Ground employees make if Fed Ex finally allowed issue to clarified, and move forward. Then everyone would profit from the opportunity, not just corporate and law firms. Settle the issue Fed Ex, present the argument, let it be what it may be. Profit loss would hurt the shareholder promise, Fed Ex can't have that. Good luck to you in the scam today, may it be even better for you tomorrow. I just feel bad for the innocent I saw slaughtered to get to today, tomorrow it could be you.
 

MAKAVELI

Well-Known Member
The courts are going to look at documents signed by two entities. Compared to that, anecdotal evidence will fall flat. And if it doesn't, FedEx will again adjust the model. You know it. They've done it time and again. They've become good at it. You seem to have a notion that one day all contractor models will be found to be illegal but there's no evidence that is even close to being reality. That also is something you know.
Maybe they will keep tweaking the model. Until it no longer has an advantage( $ )over an all employee workforce. Then you will be kicked to the curb.:D
 
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prodriver

Guest
Well a lot has changed since then, I have not seen contractors held back from growing at my terminal, as long as the freight is there to justify it, and as a example with out mentioning any names I know of a linehaul contractor at one of the Ground hubs out here on the west coast who is currently running upwards of 29 trucks out of his domicile, he did this by doing multiple corporations with 5 trucks per corporation, he even may be over that 25% number but I am not sure about that.

There is plenty of room for growth also there is plenty of competition among contractors and lately some outside business that want a piece of pie. A contractor in my building got in some hot water with with high number of accidents and bad service so he created another entity sold his business to his other business and started with a clean slate, management didn't like it but they couldn't do anything about it. On multiple corporations you can't have same AO on two corporations so he's pulling a rabbit out of his hat.
 

MrFedEx

Engorged Member
The courts are going to look at documents signed by two entities. Compared to that, anecdotal evidence will fall flat. And if it doesn't, FedEx will again adjust the model. You know it. They've done it time and again. They've become good at it. You seem to have a notion that one day all contractor models will be found to be illegal but there's no evidence that is even close to being reality. That also is something you know.

Anecdotal evidence can serve to show how the contract is employer/employee, as in that reality proves that the contract is a farce. Contractor model are frequently found illegal, especially in the transportation industry, and there is a long list of trucking companies who have been found to have employees, not contrctors. The difference with FedEx is that they have a lot of resources, political, financial and legal, to throw at the issue. FedEx can only adjust the model so far, and even that won't compensate for their obviously increasing degree of control.

If the contract says one thing, and actions say another, the FedEx has a problem. I'd say they are running out of options, and that some court will eventually see that legal language and operational reality don't synch. In other words, FedEx is running the show, not the ICs and ISPs, and the courts will have evidence to support that fact.
 
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prodriver

Guest
Anecdotal evidence can serve to show how the contract is employer/employee, as in that reality proves that the contract is a farce. Contractor model are frequently found illegal, especially in the transportation industry, and there is a long list of trucking companies who have been found to have employees, not contrctors. The difference with FedEx is that they have a lot of resources, political, financial and legal, to throw at the issue. FedEx can only adjust the model so far, and even that won't compensate for their obviously increasing degree of control.

If the contract says one thing, and actions say another, the FedEx has a problem. I'd say they are running out of options, and that some court will eventually see that legal language and operational reality don't synch. In other words, FedEx is running the show, not the ICs and ISPs, and the courts will have evidence to support that fact.

What trucking companies have been found to have employees and not contractors? You would need to visit day to day operations to know who is running show.
 

bbsam

Moderator
Staff member
one used to be OnTrac, but i think they booted out the union and follows the Ground model now with similar results:

http://browncafe.com/community/threads/ontrac-on-the-west-coast-booted-out-the-union.355419/

Amazon Fresh looks like it's doing ok, i think... but the small regional carriers are flooding craigslist due to a major fulfillment center being build in the area
No. MFE is referencing trucking companies that were found by the courts to be misclassifying drivers as contractors. He claims there are many and we are waiting for a list of said trucking companies.
 

MrFedEx

Engorged Member
that's one. Next?

The principle remains the same. "Contractors",held to employee standards, and paid rock-bottom wages. Gee, why wouldn't the firms that employ them want employees? Sound familiar? I'll compile a list of others. That CA one is a great example...thanks, sph! Ground's day is coming, and this CA case may be used as precedent. We shall see.
 

bbsam

Moderator
Staff member
The principle remains the same. "Contractors",held to employee standards, and paid rock-bottom wages. Gee, why wouldn't the firms that employ them want employees? Sound familiar? I'll compile a list of others. That CA one is a great example...thanks, sph! Ground's day is coming, and this CA case may be used as precedent. We shall see.
Tell the truth. How many years have you been saying that?
 

M I Indy

Well-Known Member

Heres a quick and recent 10: SeaconLogix, Proud 2 Haul Inc., Diamond Freight Distribution, Mayor Logistics, Inc., Western Freight Carrier, Total Transportation Services Inc., Island Transport Logistics, Roadlink Services, Green Fleet Systems, LLC., 3P Delivery Inc. A lot more, but, why bother, you have already made up your mind. You will still feel as though you're independent even when a court will tell you that you are not, because it works for you, so screw the others that's their problem, right. Problem is in this country, it has to work for everyone, that is where Fed Ex uses the vague contract to pick and choose who grows and who goes. That's okay in a right to work state to do to your employees, but,not your misclassified IC''s.
 
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