The race between the UPS and FedEx Ground, in order to gain further market share is hot and fast as NASCAR Dale Jarrett UPS car and drove the car with Jason Leffler FedEx.
More than a competition between companies is a fight between two business models. A company of employees with performance and protection under the law. The other company saves up to 30% for the classification of drivers as independent contractors (IC), which say they are in the business ofthemselves.
What is a delivery driver for employees? This is a self-employed? Both wear uniforms. The two trucks that travel on flights of colors and logo of the company.
Answer: FedEx Ground independent contractor by hiring a model of UPS and employees.
Offering attractive benefits packages and higher salaries, UPS argues that the loyalty and employee satisfaction leads to a higher level of service to its customers. FedEx counters because their way ofencourages drivers to work harder and smarter to achieve a profit.
"The business model we use is good for our suppliers," said FedEx chief Fred Smith. "This is what is happening on freedom. We have seen growing business opportunities for thousands of entrepreneurs and develop their businesses."
Drivers with more contracts or routes can earn more than $ 100,000 to set their own employees. Are independent, autonomous and not controlled. When customers are satisfied,FedEx is happy. N. boss looking over your shoulder, they say, what to do, are what are your boss.
The disadvantages are the benefits, not paying overtime, sickness, holiday or insurance, pay for the entire truck drivers, gas, maintenance, supplies, uniforms, insurance. Social security benefits in retirement will be less because the tax is not collected while working as an IC. The amount of freedom is not much, but if the driver really only one customer: FedEx.
AnnetteCraig, of King of Prussia, PA worked 16 to 18 hours a day on a journey through some high-crime areas of Philadelphia. Not earn overtime for a company and can not benefit from both income from employment, after being hit by a car and FedEx. The company a week later, the contract ended, then grabbed his company financed by truck. It is now homeless and living with a cousin and friends, while her daughter lives with her familyFlorida.
Working at UPS, as an employee of its advantages and disadvantages. The drivers safety at work, good performance and a definition of truck drivers union and collective bargaining. Gasoline, maintenance, insurance and all other expenses are covered by the company that paid the average age is over 16 years and almost all pilots are employed in the company.
Everything must be carefully planned and monitored, for better or for worse. One rule is that the drivers must obtain a reversal of powerButton and hold with the lower teeth, except one or two seconds to start the truck.
On the negative side will, starting salaries at about $ 70,000 for four-and twelve for a job as a driver after the accession of the company. The EU also has the option of having a strike and stop working, as in 1997.
The aspect that FedEx employees entrepreneur in reality lead to practical benefits of working for FedEx investigated in 25 states and aThe action class driver determined in 20 states. FedEx said it may pay 319 million U.S. dollars in back taxes and IRS penalties for misclassification of workers in 2002. The IRS has also audited the unit of FedEx trucks 2004-2006 and the potential liabilities could be 1 billion.
In July 2004, Los Angeles County Superior Court Judge Howard J. Schwab said that the contractors, with multiple paths, contractors who have legitimate businesses. Single-route contractors, but mustClassified as employees. FedEx does not offer disagree with the decision, but if persistent or contractors reclassified to one path or change in employee relations are less restrictive and controlling, allowing drivers to be true independent contractor.
What do you think? FedEx is the right to use the assumption to be capable of consenting adults of sound mind or wrong to assume FedEx drivers desperate for a job?
Next issue: information on legislation, the IRS andWhat does this mean for all workers.
© 2008 Bob Carstensen
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