Fed Ex sued

[daniel@procarpet]

http://www.bloomberg.com/news/2010-10-2 ... ation.html

 

[joeynbgky]

Does fedex require the drivers to purchase and use their own vehicles? DSL requires the drivers to buy cargo vans, have it painted and lettered up..

 

[Dolly Llama]

this is biz related and worthy of the Clean room .
The sub contractor issue is a good one and relevant to us


Here's an interesting tid bit..

701 contract drivers at NY FedEx
The average contractor had revenue of $190,000.

i wonder what their expenses are ?
Cause seems like one man and a truck could bank some jack
I donno what their cost of doing biz is, but wouldn't they be better off as subs than employees??

what am I missing????


..L.T.A.

 

[daniel@procarpet]

I wonder how they can claim them as contractors? Well I guess they can't.

They are providing the trucks and have complete controll over how the routes are ran.

I see this being a problem in the near future for a lot of carpet cleaning companies.

I know several that contract just the labor. They provide the equipment, the chems, and the work. The tech provides the labor and the truck.

I could be wrong, but they seem like employees to me.

I mean SS could just install their machines in trialers, hire techs that have a truck, and pay them as contractors.

That just doesn't seem right.

 

[Captain Morgan]

I talked with a guy who was selling his route in my area. Unfortunately for me, they wouldn't let him sell his route to me because I'm diabetic.

He did have to buy his own vehicle and have it lettered to their specifications. Uniforms had to be purchased through them. They gave him the packages in his "territory" and he plotted his delivery route. He paid for his own gas but Fedx did give him an allowance/credit per mile to reduce his out of pocket expenses. He could set his own hours (within reason) as long as he attempted to make all deliveries by a certain time of day. If he wanted to sleep in, not a problem he'd just have to work later that day.. not always a good thing to do especially if he had a big load of deliveries. If he had a light load, he'd be done by noon or sooner and could take the rest of the day off or could pick up deliveries that were to be made in areas that weren't covered in anyone's territory. Those deliveries paid a lot more to do but you might end up driving quite a way outside your usual route.. a bit of a risk but he said he never lost money on those, and they had a lot of them so it was easy to make some extra $ if you had a light load. He bought his vehicles used off other route owners that were rotating trucks and planning on buying new that way he didn't have to pay a ton for new and extra for paint and lettering.

He was doing pretty good for himself. He'd finished college, (was working as a sub for another guy who had puchased extra territories and just wanted to have someone else do the deliveries and he'd take a cut for what they made for deliveries) He eventually bought that route because he was so familiar with the roads and customers.

He bought a nice house with land for and put almost half down in cash to lower his payments, was planning on getting married and he was only about 24 yrs old. The guys at the warehouse joked saying he was lazy, wasn't motivated, always came in late hung over etc.. but he seemed like an ok guy to me.

I'm still pissed about the diabetic rule though

 

[Larry B]

Sounds like sears carpet cleaning. You buy everything through us and we tell you what to do.

Around IL you will see subs for FedEx all the time but they have there own name on the vans with a magnet that has FedEx on the door.

 

[rhino1]

The meter readers around here were hired as subs thru a contractor hired by the local power co. They had to use their own vehicle, made their own hours (as long as they got the meters read) and leased their computerized keypad thing.

They got away with it for 6 years and just got nailed, over a worker comp. claim.

I hear they are going to have to backpay alot of taxes, social security, etc.

It just surprises me it took that long, they took the jobs from IBEW (union) members.

 

[daniel@procarpet]

The meter readers around here were hired as subs thru a contractor hired by the local power co. They had to use their own vehicle, made their own hours (as long as they got the meters read) and leased their computerized keypad thing.

They got away with it for 6 years and just got nailed, over a worker comp. claim.

I hear they are going to have to backpay alot of taxes, social security, etc.

It just surprises me it took that long, they took the jobs from IBEW (union) members.

So you are saying I can't sub the labor out and rent the equipment like Greg Cole?

Who would have thought.

 

[carpetcleaner]

The last time I looked into to sub contractors, they couldn't only work for one company. They are employees.

 

[Greg Cole]

The meter readers around here were hired as subs thru a contractor hired by the local power co. They had to use their own vehicle, made their own hours (as long as they got the meters read) and leased their computerized keypad thing.

They got away with it for 6 years and just got nailed, over a worker comp. claim.

I hear they are going to have to backpay alot of taxes, social security, etc.

It just surprises me it took that long, they took the jobs from IBEW (union) members.

So you are saying I can't sub the labor out and rent the equipment like Greg Cole?

Who would have thought.

Ahhhh, the devil is in the details......... They obviously failed a litmus test somewhere. If they had to lease the computerized device and couldn't purchase their own or use a similar one of their choosing- you foun what nailed. Looked like a sub but didn't pass the test.......

 

[daniel@procarpet]

Glad you are here Greg. I have a few questions for you to answer about some local services.

 

[daniel@procarpet]

We have a few services here that provide the equipment (no rental fees etc.) and the chems (I think they use slurry and that's it). The owner does all the marketing. The techs just do the jobs, but they use their own vehicles. The owner sets the pricing and has the final say as to what the best cleaning method is. He pays the tech 45 percent of the gross.

How are these guys contractors?

 

[idreadnought]

A contractor is a brilliant idea that works flawlessly untill.... It doesn't. Sure you may get away with it for months or years but if the gov't comes looking then you will most likely be busted and it will cost you big time. Just hire the guys and pay them a cut. Lots of good employees out there looking for a decent career right now.

 

[Brian R]

Best thing about having an employee is you have more control.
Best thing about subs is you have less perception of control. :mrgreen:

It's all books and looks