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<blockquote data-quote="Ricochet1a" data-source="post: 955326" data-attributes="member: 22880"><p>This all begs many questions....</p><p></p><p>1) How does FedEx intend to continue with the charade of "independent" business owners, when it dictates who those owners may hire and not?</p><p></p><p>2) If new drivers need to have actual driving experience in the last 6 months (that rules out the long term unemployed applying for jobs) - who does FedEx think will apply for these jobs?</p><p></p><p>I can't imagine anyone with any sort of driving experience (that has NOT been long term unemployed) that would put up with the conditions and pay being offered in Ground.</p><p></p><p>I have received accounts (2nd and 3rd hand though) regarding the current antics of FedEx when it comes to increasing their control over Ground operators. Many old time drivers are simply saying enough and leaving - they won't be run like employees of FedEx when they aren't receiving the pay or benefits that are associated with being a FedEx employee. </p><p></p><p>I have also heard that in areas where routes need to be added, that Ground is merely "handing them out" to existing contractors without requiring any form of payment for that additional route. Likewise, they are terminating contractors or banning individual drivers from working for contractors for any little reason they can cook up to eliminate troublesome drivers/contractors. </p><p></p><p>Part of the hook of Ground, is that the contract has a lease clause in it (contractors own the equipment, but part of their payment scheme is through a "lease" agreement with Ground leasing the vehicle to be used). This allows Ground to exert control over the vehicle (condition, maintenance, logos) that otherwise they would have no ability to exert any control over. </p><p></p><p><em>For those that are interested, look to how the regional airlines work their ownership/control issues - it is where FedEx got the idea in the first place. That arrangement is also being looked at by the Feds - due to the inherent misrepresentation that goes on when a passenger purchases a fare on an airline and makes part of their journey on one of the regional airlines that have the look and impression of flying on the major carrier. They aren't getting exactly what they think they are getting (in terms of safety, aircrew experience and assignment of liabiilty) when they fly on one of these little aircraft. </em></p><p><em></em></p><p>Express hires new Couriers off the street without so much as a day of driving experience. Part of the "hook" for Express Handlers is that if they put their time in position, they can make an internal application for a Courier position and get it (unless they can't pass the physical or have driving record issues). They've already passed all the background checks, so there is nothing else holding them back.</p><p></p><p> 3) What is the average turnover rate for Ground Handlers?</p><p></p><p>Since they are precluded from becoming a driver (clever little trick FedEx played...) due to the need to have recent driving experience, they are caught in a Catch 22 (classic FedEx style). As long as they work as handlers, they can't ever drive a truck (under this scheme). </p><p></p><p>So what is holding them in place? </p><p></p><p>Both Express and UPS have the ability to keep handler turnover managable due to the real prospects for their being able to eventually drive for their respective companies. Many stick it out as a handler, just to have a shot of getting into a driving position. </p><p></p><p>4) Part of FedEx's propaganda regarding the contractor model was that drivers could own their own route and build their own business. This obviously is going out the window with the conversion to a "service provider" model. So, how does FedEx continue to boast that the drivers are "independent" and not employees of FedEx - when they no longer have a chance in hell of owning the route they are operating?</p><p></p><p>The whole ISP model has the smell of a "franchise" system. However there is a significant difference - a franchise operator only receives guidance regarding the operation of their business (how to present the brand, the service/product offered, etc.) - they are not instructed as to who they can and cannot hire.</p><p></p><p>Everyone knows why FedEx is using the system they are using - to keep Ground union free and maintain an inherent cost advantage over UPS due solely to one factor, its undercompensated labor force. The question is: Just how far will FedEx push in its obsessive desire for control, while being able to stay just within the gray area of labor and business contract law?</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 955326, member: 22880"] This all begs many questions.... 1) How does FedEx intend to continue with the charade of "independent" business owners, when it dictates who those owners may hire and not? 2) If new drivers need to have actual driving experience in the last 6 months (that rules out the long term unemployed applying for jobs) - who does FedEx think will apply for these jobs? I can't imagine anyone with any sort of driving experience (that has NOT been long term unemployed) that would put up with the conditions and pay being offered in Ground. I have received accounts (2nd and 3rd hand though) regarding the current antics of FedEx when it comes to increasing their control over Ground operators. Many old time drivers are simply saying enough and leaving - they won't be run like employees of FedEx when they aren't receiving the pay or benefits that are associated with being a FedEx employee. I have also heard that in areas where routes need to be added, that Ground is merely "handing them out" to existing contractors without requiring any form of payment for that additional route. Likewise, they are terminating contractors or banning individual drivers from working for contractors for any little reason they can cook up to eliminate troublesome drivers/contractors. Part of the hook of Ground, is that the contract has a lease clause in it (contractors own the equipment, but part of their payment scheme is through a "lease" agreement with Ground leasing the vehicle to be used). This allows Ground to exert control over the vehicle (condition, maintenance, logos) that otherwise they would have no ability to exert any control over. [I]For those that are interested, look to how the regional airlines work their ownership/control issues - it is where FedEx got the idea in the first place. That arrangement is also being looked at by the Feds - due to the inherent misrepresentation that goes on when a passenger purchases a fare on an airline and makes part of their journey on one of the regional airlines that have the look and impression of flying on the major carrier. They aren't getting exactly what they think they are getting (in terms of safety, aircrew experience and assignment of liabiilty) when they fly on one of these little aircraft. [/I] Express hires new Couriers off the street without so much as a day of driving experience. Part of the "hook" for Express Handlers is that if they put their time in position, they can make an internal application for a Courier position and get it (unless they can't pass the physical or have driving record issues). They've already passed all the background checks, so there is nothing else holding them back. 3) What is the average turnover rate for Ground Handlers? Since they are precluded from becoming a driver (clever little trick FedEx played...) due to the need to have recent driving experience, they are caught in a Catch 22 (classic FedEx style). As long as they work as handlers, they can't ever drive a truck (under this scheme). So what is holding them in place? Both Express and UPS have the ability to keep handler turnover managable due to the real prospects for their being able to eventually drive for their respective companies. Many stick it out as a handler, just to have a shot of getting into a driving position. 4) Part of FedEx's propaganda regarding the contractor model was that drivers could own their own route and build their own business. This obviously is going out the window with the conversion to a "service provider" model. So, how does FedEx continue to boast that the drivers are "independent" and not employees of FedEx - when they no longer have a chance in hell of owning the route they are operating? The whole ISP model has the smell of a "franchise" system. However there is a significant difference - a franchise operator only receives guidance regarding the operation of their business (how to present the brand, the service/product offered, etc.) - they are not instructed as to who they can and cannot hire. Everyone knows why FedEx is using the system they are using - to keep Ground union free and maintain an inherent cost advantage over UPS due solely to one factor, its undercompensated labor force. The question is: Just how far will FedEx push in its obsessive desire for control, while being able to stay just within the gray area of labor and business contract law? [/QUOTE]
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