To win the race between UPS and FedEx Ground for larger market share, is just as hot and fast as NASCAR Dale Jarrett UPS car and Jason Leffler, driving the car FedEx.
More than just a competition between companies, this is a battle between two business models. A company of employees with performance and protection under the law. The other company saves up to 30% from the classification of drivers as independent contractors (ICs), which support the business for themselves.
WhichDrivers of delivery is an employee? What is a self-employed? Both wear uniforms. Both drives trucks decorated with corporate colors and logos.
Answer: FedEx Ground is running an independent contractor and the model only represents UPS employees.
Through attractive pay packages and high performance, makes UPS the loyalty and employee satisfaction leads to a higher level of service to their customers. FedEx Ground counters that motivates their wayDrivers who work harder and smarter to achieve a profit.
"The business model that we use for our party well," said FedEx chief Fred Smith. "This is what freedom is all about. We have the business opportunity to thousands of entrepreneurs to grow and expand their business.
Drivers with more contracts or routes can earn more than $ 100,000 and also set their own employees. Are independent, self-directed and are not monitored. When customers are satisfied, FedExhappy. N. boss looking over my shoulder to say, what they are doing their boss.
The disadvantages are the benefits, do not pay overtime pay, sick time, holiday or insurance, and drivers for all: the truck, 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 very helpful if the driver really only one client: FedEx.
Annette Craig, the king ofPrussia, PA worked 16 to 18 hours a day on a route that crosses a high-crime area of Philadelphia. You do not earn overtime and IC was not allowed even for the salaries of employees, after being hit by a car, while the supply of FedEx. The company ended its contract after weeks and then back to his company vehicle will be funded. Now is homeless and stays at home with a cousin and friends, while her daughter lives with his family in Florida.
Working at UPS asEmployees has its advantages and disadvantages. The drivers safety at work, good performance and a Teamsters union contracts and collective bargaining. Gas, maintenance, insurance and all other expenses incurred by the Company, paid the average length of service, should be discontinued for more than 16 years and nearly all pilots in the company.
Everything must be planned and controlled with precision, for better or for worse. One rule is that the pilots to return the truck on foot, the ignition key and keep it off with his teeth,Save one or two seconds when you start the truck.
On the other hand, salaries upwards of around U.S. $ 70,000 and you can get between four and twelve years for a job as a driver after the accession of the company. The Union has also benefited, with the possibility of a strike to come and work interruptions, as in 1997.
The aspect that FedEx actually lead contractor employees without benefits working procedures FedEx investigated in 25 states and a class action covering drivers in 20 states.FedEx said it has to pay 319 million U.S. dollars in back taxes and fines to the IRS for misclassification of employees in 2002. The IRS also examined FedEx trucking unit for 2004 to 2006 and the liability could be 1 billion dollars.
In July 2004 LA County Superior Court Judge Howard J. Schwab issued a ruling that the contractors thanks to the more entrepreneurs are a legitimate business operates. Single-route contractors should be classified as employees. FedEx objected to theSentence, but if it keeps up, that single-route contractors to classify people, or changing the ratio to be less restrictive and controlling, so the pilots to be true independent contractor.
What do you think? FedEx is in a position to contract with consenting adults of sound mind, or FedEx, the driver uses incorrectly desperate for work?
Next issue: More on the law, the IRS and what this means for all employees.
© 2008 BobCarstensen
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