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FedEx Freight | Changes coming in June?

Gator said:
Watkins had city contractors , it possible if a contractor buys multiple units same as they do at ground, don’t ever assume it can’t be done. It was said a few years ago FedEx doesn’t want a driver on there payroll.
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FedEx Overhaul Contemplates a Future With No Drivers on Payroll - Bloomberg
www.bloomberg.com

FedEx Overhaul Contemplates a Future With No Drivers on Payroll

FedEx Corp. is ripping up founder Fred Smith’s well-worn playbook as it rethinks virtually the entire business. That could mean the end of FedEx drivers as we know them.
www.bloomberg.com www.bloomberg.com
 
SwampRatt said:
Wow. Wonder how long till it gets to us.

How much severence? Where is the exit door?
:smilie93c peelout:
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They always reference G&E/Package when they speak of that. I always hope Freight will miss it. At least initially, going to a contractor model would be a massive undertaking. I'd predict you'd get MAYBE 50% of the current drivers to stick around and work under a contractor model,and I'd expect they'd start with the road first, and eventually to the city. Also, it wouldn't shock me if they simply let Freight exist as it is. Relatively, Freight drivers are a small % compared to package, and the savings may not justify the trouble.
 
No F-bdy Bs said:
They always reference G&E/Package when they speak of that. I always hope Freight will miss it. At least initially, going to a contractor model would be a massive undertaking. I'd predict you'd get MAYBE 50% of the current drivers to stick around and work under a contractor model,and I'd expect they'd start with the road first, and eventually to the city. Also, it wouldn't shock me if they simply let Freight exist as it is. Relatively, Freight drivers are a small % compared to package, and the savings may not justify the trouble.
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The headline is NO Driver's on payroll. Not no Express/Ground on payroll.
 
SwampRatt said:
Questions about the fine print on severance: Did you have to stay on until the final day of operation to qualify? Did insurance continue for any time?
:popcorn:
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Yes you had to stay till the end! You can be on vacation (I was the last week) I think you had to go cobra after the last day, not positive because I was already on my wife’s insurance.
 
I don't see it happening on a huge scale without some changes in the current laws and tax code and some of that just changed in March with the FLSA.

There are few tests that must be met. One that raises an eyebrow for me is:

Extent to which the work performed is an integral part of the employer’s business. This factor primarily looks at whether the work is critical, necessary, or central to the potential employer’s principal business, which indicates employee status. Where the work performed by the worker is not critical, necessary, or central to the potential employer’s principal business, this indicates independent contractor status. This factor does not depend on whether any individual worker in particular is an integral part of the business, but rather whether the work they perform is an integral part of the business.
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Another is:

Nature and degree of control. This factor primarily looks at the level of control the potential employer has over the performance of the work and the economic aspects of the working relationship. Relevant facts include whether the potential employer: controls hiring, firing, scheduling, prices, or pay rates; supervises the performance of the work (including via technological means); has the right to supervise or discipline workers; and takes actions that limit the worker’s ability to work for others. Where the potential employer maintains more control over these aspects of the work relationship, this factor weighs in favor of employee status, and where the potential employer maintains less control over these aspects of the work relationship, this factor weighs in favor of independent contractor status. Control that is for the sole purpose of complying with a specific, applicable federal, state, tribal, or local regulation, rather than the employer’s own internal policies or customer standards, does not weigh in favor of an employment relationship.
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I'm not a lawyer, but I was an IC for many years. My wife has been an IC for the last 30+ and I currently utilize ICs., so take it for what it's worth. I'm certain FedEx has scores of legal counsel advising them what's doable and what's not. I don't see it happening without some political action creating exemptions. Not unlike Gov. Newscum's minimum wage for fast food workers being raised to $20/hr exempting his buddy's business Panera as a "bakery", or Lyft and Uber as technology companies instead of ride-share companies.
 
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