FedEx Custom Critical ???? Are they what they say they are??

[layoutshooter]

Geez, I wish I had a nickel for all of the loads that had a different number of skids or a weight that was different. I would be out of business if I turned them down. Things are seldom that set in stone. I cannot even imagine teaming in a van like that.

 

[scottm4211]

Can somebody open a window?

 

[fastrod]

Ah pookie, ya dont get it lol. Yep, we're independent contractors.

In reality if you lease to a carrier with an exclusive use contract you are an dependent contractor. To be an independent contractor you would need your own authority and partner agreements with other carriers.

 

[greg334]

Sorry Dale, et al FedEx contractors for this comment but

THIS is all FedEx's fault, every bit of it.
​

BECAUSE - FedEx knows better than to allow something small to be in the fleet.

If it causes one issue with one load, it is time to change the policy about accepting anything less than an extended cargo van whether or not it is a solo or team in it. The cargo specs are one thing, the vehicle specs are a completely different matter - they limit the vehicle by age, why not by model?

Problem solved.

The one thing that really frikn' bothers me is this statement and I'm not picking on anyone but ...

Drums not strapped....so we strapped them ourselves

If you will not secure any load that is on your van or complain about securing a load, you don't need to be on the road endangering anyone.

By the way I know what an independent contractor is but read your contract and see what your limitations are BEFORE you sign it.

 

[ATeam]

In reality if you lease to a carrier with an exclusive use contract you are an dependent contractor. To be an independent contractor you would need your own authority and partner agreements with other carriers.

Actually, to be an independent contractor, you must operate your business in a way that meets the IRS definition of independent contractor. It has nothing to do with exclusive use or even trucking for that matter. Carpenters and sales representatives can be independent contractors too.

Regarding dependency, every expediter is dependent on his or her customers, no matter what the specific contractual relationship may be. If you fail to meet your customers' expectations, it is good bye to you.

 

[jansiemoo]

Sorry Dale, et al FedEx contractors for this comment but

THIS is all FedEx's fault, every bit of it.
​

BECAUSE - FedEx knows better than to allow something small to be in the fleet.

If it causes one issue with one load, it is time to change the policy about accepting anything less than an extended cargo van whether or not it is a solo or team in it. The cargo specs are one thing, the vehicle specs are a completely different matter - they limit the vehicle by age, why not by model?

Problem solved.

By the way I know what an independent contractor is but read your contract and see what your limitations are BEFORE you sign it.

Yep. They fixed their mistake, too. Lease should have been pulled a while ago.

Know why this thread is so awesome? Because it serves as a very, very long wake up call to anyone in this business who thinks they know everything and need a dozen well versed and experienced expeditors (and some not so, myself included) to spell out some very straightforward points of the business.
It will hopefully not fall on deaf ears and be read by many more than just those posting.

 

[greg334]

Actually, to be an independent contractor, you must operate your business in a way that meets the IRS definition of independent contractor. It has nothing to do with exclusive use or even trucking for that matter. Carpenters and sales representatives can be independent contractors too.

NOPE Phil, WRONG.

In order to be an independent contractor, you have to fill the requirements of the National Labor Relations Act - not the IRS. The IRS determines IF there is an employment in order to recover tax revenue, not to have a company follow labor laws of a state or Federal Government. They can't tell a company that they are in violation of a labor law or that they breached a contract - that all belongs to the department of labor.

Carpenters are not a good example, actually I don't think there is one comparable profession that can be used.

Take carpenters for a moment, their tools (hammers, saws, square and level) belong to them and even if they are to work for one person under a contract, does not mean that the tools they use can not be used for other related work - if I hire a carpenter to build a specific design with a non-disclosure and a specific time line, during time he is not working on my stuff he can use the same tools he brought to do my work and use them at another job. His tools are his, I don't put my brand on them or claim them as part of my business or make them stay on site in order for the work to be completed.

In an exclusive use contract in this business, you can't take those vehicles anywhere without altering them, most of which means it is branded. So if you have signs on the van, it is a branding which means you are limited to that company all the time and hence a dependent contractor. In many cases, you have to get permission to use your or when you need to operate under their insurance programs, you can't haul for say someone on UShip. This is a limitation on what you can do with your tools which no other contractor has.

 

[dabluzman1]

NOPE Phil, WRONG.

In order to be an independent contractor, you have to fill the requirements of the National Labor Relations Act - not the IRS. The IRS determines IF there is an employment in order to recover tax revenue, not to have a company follow labor laws of a state or Federal Government. They can't tell a company that they are in violation of a labor law or that they breached a contract - that all belongs to the department of labor.

Carpenters are not a good example, actually I don't think there is one comparable profession that can be used.

Take carpenters for a moment, their tools (hammers, saws, square and level) belong to them and even if they are to work for one person under a contract, does not mean that the tools they use can not be used for other related work - if I hire a carpenter to build a specific design with a non-disclosure and a specific time line, during time he is not working on my stuff he can use the same tools he brought to do my work and use them at another job. His tools are his, I don't put my brand on them or claim them as part of my business or make them stay on site in order for the work to be completed.

In an exclusive use contract in this business, you can't take those vehicles anywhere without altering them, most of which means it is branded. So if you have signs on the van, it is a branding which means you are limited to that company all the time and hence a dependent contractor. In many cases, you have to get permission to use your or when you need to operate under their insurance programs, you can't haul for say someone on UShip. This is a limitation on what you can do with your tools which no other contractor has.

You may want to edit your comment to Phil:
The National Labor Relations Act or Wagner Act (after its sponsor, Senator Robert F. Wagner) (Pub.L. 74-198, 49 Stat. 449, codified as amended at 29 U.S.C. § 151–169), is a 1935 United States federal law that limits the means with which employers may react to workers in the private sector who create labor unions, engage in collective bargaining, and take part in strikes and other forms of concerted activity in support of their demands.
The Act does not apply to workers who are covered by the Railway Labor Act, agricultural employees, domestic employees, supervisors, federal, state or local government workers, independent contractors and some close relatives of individual employers.

 

[cheri1122]

Sorry, snookie, uh, pookie, no one was 'jabbin' at you. You failed to mention DAYS AGO that you don't have the space to run per FedEx's specifications.
After everyone asked.
Repeatedly.
We asked and asked.
Try answering questions as straightforward as the questions are asked, you might not have this problem with 'people not listening'. I suspect you have this problem with a lot of people.
Oh, and so you know I'm 'listening', the person who signed you on as a team without sleeping quarters should be drawn and quartered. Mostly for causing this disasterous thread.

I'm so glad you're back - good stuff.
He said "FedEx has van dimensions" because, you know, it's THEIR fault for assuming he had the required equipment, including provisions for both drivers to sleep.

 

[zero3nine]

Teaming in a short wheelbase cargo van with 2 dogs? Who says there's no entertainment on EO anymore? I always like to start my day with a good laugh.

Bet that van smells like flowers.


Brown, stinky flowers.


fired at you from my Droideka

 

[greg334]

Nope can't because of the past experience with the issue dealing with both the IRS and Department of Labor directly. Both the IRS and the DoL people told me exactly what they do on the issue of independent contractors and how the different laws apply to the different professions.

After that, I had dealt with the DoL on a similar issue that had to do with back wages and overtime there again I had a thorough explanation on how this work and how and why independent contractors fall under the DoL and not the IRS on the matter of labor.

 

[dabluzman1]

Nope can't because of the past experience with the issue dealing with both the IRS and Department of Labor directly. Both the IRS and the DoL people told me exactly what they do on the issue of independent contractors and how the different laws apply to the different professions.

After that, I had dealt with the DoL on a similar issue that had to do with back wages and overtime there again I had a thorough explanation on how this work and how and why independent contractors fall under the DoL and not the IRS on the matter of labor.

I dont buy it, but, thats your story.....

 

[greg334]

I understand but it is rather amazing how complex labor issues are and how it all doesn't work for the people it supposed to protect.

 

[dabluzman1]

I understand but it is rather amazing how complex labor issues are and how it all doesn't work for the people it supposed to protect.

You are using an employer/employee relationship and applying it as an argument in an independent contractor scenario, sorry that dont work.

 

[fastrod]

Actually, to be an independent contractor, you must operate your business in a way that meets the IRS definition of independent contractor. It has nothing to do with exclusive use or even trucking for that matter. Carpenters and sales representatives can be independent contractors too.

Regarding dependency, every expediter is dependent on his or her customers, no matter what the specific contractual relationship may be. If you fail to meet your customers' expectations, it is good bye to you.

There is an interesting article in the Dollars and Sense section from jan 25 2005, Independent contractor classification.
The next article is interesting too. Seems a lawyer in a case showed that when a carrier dispatched a contractor that had the carriers signs on his truck and was wearing a hat with the carriers logo on it he should be classifed as a employee. The court agreed.

 

[fastrod]

By the way Phil, you have no customers. Your just a tool Fedex CC uses to service their customers.

 

[dabluzman1]

There is an interesting article in the Dollars and Sense section from jan 25 2005, Independent contractor classification.
The next article is interesting too. Seems a lawyer in a case showed that when a carrier dispatched a contractor that had the carriers signs on his truck and was wearing a hat with the carriers logo on it he should be classifed as a employee. The court agreed.

There have been instances where employment was not found as well
One has to be very careful or else the IRS can label you as an employee and you would lose many of your write offs.
This is an ongoing battle.

 

[zero3nine]

By the way Phil, you have no customers. Your just a tool Fedex CC uses to service their customers.

fired at you from my Droideka

 

[dabluzman1]

By the way Phil, you have no customers. Your just a tool Fedex CC uses to service their customers.

If you are contracted to say Fedex, they are your customer.

 

[ATeam]

By the way Phil, you have no customers. Your just a tool Fedex CC uses to service their customers.

Technically, you are correct. The people whose freight I haul do not pay me. They pay FedEx. And that is one of the things I like best about the independent contractor and leased truck arrangement I have with FedEx Custom Critical.

After going home to Minnesota for Christmas, Diane and I drove to Florida for an extended stay at the vacation home we have there. In mid-February we started hauling freight again with no negative comments received from the people we serve and no questions asked about where we had been or what we had been doing.

While Diane and I enjoyed a vacation without giving two seconds of thought to customers, FedEx Custom Critical continued to serve them well, keeping them warm and close until we returned.

I've been there and done that with having my own customers in other business endeavors and could easily transisition back to directly serving customers again.

In trucking, that would be achieved by getting my own authority, using my sales skills to build a customer base and using my management skills and labor to deliver added value to my customers. The reason I don't get my own authority is that I like the freedom and simplicity that comes with serving FedEx's Customers instead of my own.

FedEx does the sales and marketing. FedEx does the safety and compliance work. FedEx does the billing. For the 39% of the gross they keep, it is a fair trade that Diane and I happily make.

When I talk about serving customers or even say serving my customers, I really mean serving FedEx's customers. It is a distinction without a difference. I would serve them equally well if they were my customers or FedEx's, and my business success still depends on their willingness to use the services I provide.

I am no more a tool in FedEx's business plan than FedEx is in mine.