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Old 03-05-2007, 11:17 PM
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Default FedEx Investigation could benefit drivers

Hi All –



I just read about an investigation into FedEx and how it is misclassifying its drivers. Apparently it has been intentionally misclassifying independent contractors on purpose to boost company profits and reduce operating costs.



There have been over 40 cases already filed in courts nationwide and now is a good time for any FedEx driver to speak up regarding your experience.



For more information click here. http://www.hbsslaw.com/FedEx_investi...d=aZqmt3xz2N85
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Old 03-05-2007, 11:21 PM
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Many O/O, if you go strictly by IRS guidelines, are in fact company employees being paid as independant contractors.

What is even worse there are company drivers being paid this way as well.
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Old 03-06-2007, 02:37 AM
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I'm a UPS driver so I know a little about what is going on. It only applies to Fedex Ground drivers. Several years ago they bought out RPS and form Fedex Ground. RPS drivers owned their routes and areas and were independent contractors. Fedex came in and started treating them like employees. Changing areas, uniforms, how to deliver, how to walk, how to drive, etc. The only thing they could control is when they started work. Fedex also would pulled contracts from these guys and they would lose everything.

A lot of them have had enough and have been suing Fedex saying they were misclassified as independent contractors and should be employees. This would cost Fedex millions of dollars for taxes, fuel, trucks, maintenance, route pay backs, etc. Once they are classified as employees the company will have to pay the independent contractors back for all of their expenses and taxes.

So far Fedex has lost every case. Still years away from resolution, but it doesn't good.
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Old 03-06-2007, 01:07 PM
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I can remember when FedEx first bought out RPS and I will agree to an extent about FedEx wanting to keep them classified as Independent Contractors, but that is not their main reason for doing this. The main reason why they made it IC is because they wanted to keep the Ground side as a totally seperate entity from the Air side. It really didn't have to much to do with screwing over employees, it was for regulation reasons. I can remember UPS pitched a royal fit over this, and if I know UPS I'm sure they still are, claiming that it just wasn't fair. FedEx found a loophole by acquiring the Ground side after the Air side, which was unavailable to UPS. It always sounded like a load of sour grapes to me.
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Old 03-06-2007, 06:27 PM
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If it is "sour grapes" on Brown's part like you say, then why does FedEx LOSE every court case ? Brown does not have anything to do with FedEx, nor do we care. It was FedEx contractors who approached the courts in every circumstance. FedEx just wants the control, without the union. They can't have it both ways. You cannot tell a person: "Buy this particular vehicle-Run this particular route-Pay for all maintenance-Wear my uniforms-Deliver my brand of freight ONLY to MY customers ONLY" and then deny he is an employee. Even the courts thought that was ridiculous.
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Old 03-07-2007, 03:39 AM
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Quote:
Originally Posted by feederfred
If it is "sour grapes" on Brown's part like you say, then why does FedEx LOSE every court case ? Brown does not have anything to do with FedEx, nor do we care. It was FedEx contractors who approached the courts in every circumstance. FedEx just wants the control, without the union. They can't have it both ways. You cannot tell a person: "Buy this particular vehicle-Run this particular route-Pay for all maintenance-Wear my uniforms-Deliver my brand of freight ONLY to MY customers ONLY" and then deny he is an employee. Even the courts thought that was ridiculous.

Ditto. :!:
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Old 03-07-2007, 06:30 AM
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FedEx Ground got busted trying to have their cake and eat it too. They want to have the Package Car version of the CR England "you get all the risk, we get all the reward" business model.

I'm all for competition, but you gotta play fair.

I suspect that at some point they will bite the bullet, takes the big earnings hit for settling the lawsuits and finally acknowledge that everyone is an employee.

They went this route with the recent acquisition of Watkins.
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Old 03-07-2007, 09:39 AM
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Quote:
Originally Posted by feederfred
If it is "sour grapes" on Brown's part like you say, then why does FedEx LOSE every court case ? Brown does not have anything to do with FedEx, nor do we care. It was FedEx contractors who approached the courts in every circumstance. FedEx just wants the control, without the union. They can't have it both ways. You cannot tell a person: "Buy this particular vehicle-Run this particular route-Pay for all maintenance-Wear my uniforms-Deliver my brand of freight ONLY to MY customers ONLY" and then deny he is an employee. Even the courts thought that was ridiculous.
For starters, who the heck is Brown? Is UPS too hard to spell?

FedEx has not lost every court case, they have successfully defended their choice to use IC's instead of employees on numerous occasions. Don't take my word for it, look it up. I also don't mean to look it up on a law firm website such as the one referenced in this thread. Yeah, that's some unbiased information there, huh?

As I stated earlier, the move was made to create two totally seperate entities. I remember it very well and I also remember several folks from all levels of UPS from corporate leaders to account managers to drivers complaining about it.

There have been a handful of drivers, out of thousands, who have filed suit. My guess is that most are happy with the contract that they signed. They are living up to the terms that they agreed to and FedEx is paying them fairly decently for the services they provide. What's wrong with people living up to a contract that they signed and agreed to in this day and age? I guess folks can just claim ignorance and "woe is me" and a judge somewhere will eventually agree with them.
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Old 03-07-2007, 04:22 PM
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i ain't no smarty pants but this is what i got to say about that. i drive for a contractor, make good money with very little effort. i really like my job. that being said, would i like to get fed ex employee benefits? yes do i think i should get them? yes. do i like my purple shirt and blue pants? no. would i prefer that fed ex bought my cloths that they say i HAVE to wear? yes. but i am happy overall. and yes i am thinking about buying my contractors business in a few years, so things are not all that bad. but they could be better, just like any other job out there. we just seem to be getting a bad rap right now, you know for crashes and stuff. compare us to crengland? i don't know about that, this is pretty easy money if you ask me. and before everyone calls me stupid and crazy, let me ask if you have all of the facts first?
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Old 03-07-2007, 04:47 PM
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I wear a United Van Lines uniform.
I deliver shipments, and am expected to do it a certain way.
I deliver the freight I want, much like they bid on the routes FedeX guys do.
I drive a Diesel truck thats spec'd to company specifications.

I think I'm still an o/o :wink:

From who I have talked to, the package guys at FedEx love their gigs and pull anywhere from 60-80K on the bottom line. I heard the gravy is delivery to malls with lots of packages, and other commercial routes. The main goal of being o/o for ground is that they get a flat rate to do the job. Its in their best interest to get done quicker, sooner, and call it a day. No clock watching and milking the clock.

Kinda funny how the first post by this person is about a topic thats been discussed quite a bit lately :?
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