FedEx Home Delivery Contractors - A Girlfriend's View

My Boyfriend decided to run a FedEx Home Delivery Contractor Route. What started out as an interesting venture is fast becoming a lousy prospect. Thinking about becoming one? Here are some things, good and bad that he tells me that would make me wonder. Hate the service? Possibly it ISN'T the idiot drivers fault. ANY AND ALL COMMENTS ABOUT FED EX Home Delivery Services and Routes ARE MORE THAN WELCOME. Again, this blog expresses my opinions and the opinions of any commenter who posts here.

Friday, October 01, 2004

What's good and how I think it could be improved.

We were talking the other night about what (if anything) he likes about the "job". Right now the bad outweighs the good, but in all fairness, it isn't my intention to just complain about this whole thing. I just want to contribute an honest bit about things that really happens because we found it so hard to find the truth even from the "test run driver".

He says that, if it weren't for all the BS, what he spends his day doing is all that bad. Once he learned most of his route and stopped having to worry about finding EVERY street, things have gotten a little smoother. He gets to observe more goings on around him and deal with people a little more personally.

Delivering can actually be interesting in some ways, his route is varried between city, suburb and rural so there is plenty of variation to the day in terms of driving and the types of things being delivered. I find it interesting that He gets claims in affluent areas mostly that usually turn out bogus in terms of the release program since there are better ways to put packages out of site. With $500K house I guess you need to find ways to rip off FedEx for your order. The doors may be half falling off, the windows partially boarded up, the paint chipping but they get the wine of the month club? I guess you need priorities in life. All in all, if the day isn't overloaded he can almost enjoy the work and being out and about instead of behind a desk. And, on the non-overloaded days he can actually do what they claimed the division was about, provide friendly neighboorhood type service where he can take the time to chat every now and then.

What makes it bad is, they don't get paid for each attempt to deliver things, the overload means they have to rush if they want to get home at night, the terminal expects them to just "appoinment deliver" and "go back" to the customer without extra payment and that everything that is a problem for FHD logistics is automatically the drivers' responsibility.

Considering what I read about people complaining about the service most contractors have the same situation. If FedEx would take a good look at it from a customer service perspective they could improve both their image and the overall job/business satisfaction of the contractors.

It would take some costs to do but I think these are some things that would be good for management to focus on, albeit probably a fantasy :

Really plan volume by having honest reviews with the contractors about the volume they can handle. Consider the contractors input and be just as flexible as they want the contractors to be. Set realistic package thresholds and get a true estimation of the needed number of contractors. To stay competative doesn't just mean package volume, it means excellent customer service and how can they do this under the pressure to performthey are under?

Build a "small" supply of temp/relief drivers. Either get away from the idea of zero fleet/zero paid employees or build a program where the people who want to run multiple trucks can supply the force but make it worth their while. If you have 100 contractors that may want to take 2 weeks off during the year that is 104 weeks worth of work and if there were a true 3-4 relief only trucks then the contractors could breath a little easier. These reliefs should bear the brunt of claims/insurance. Nothing is more aggravating than knowing that the temp that drove for you lost you your monthly "bonus" because they got a valid claim.

Allow some sort of FHD independent contractors group to be formed. When my father was running a delivery truck for the food industry, he was part of a group that made it possible for them to get things like reduced healthcare, disability, credit unions and other services. FHD is so paranoid about teamsters and unions that they miss the point that having and allowing a support group would benefit them overall.

Encourage contractor input in the "roundtables" rather than shooting down everyone's concerns and questions. Stop this concept of "taboo" subjects and "jeopardizing your contract" everytime you voice an opinion.

I have the feeling that there are a lot of contractors that wouldn't want to walk if things could be improved. The overall concept of what the service is supposed to be is appealing however in its current implementation, it really isn't working. I wonder what other people think is good and what they'd like to see made better.

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Wednesday, September 29, 2004

Search Engine Exclusions?

Something funny I've noticed. For a couple of weeks now, I've seen people hitting this page from search engines like Yahoo. Now suddenly, you can't find a single reference to this page on there. Its like someone magically erased it, or, if I was being paranoid that there was some biased exclusion going on. You have to wonder if FedEx has something to do with it and it wouldn't surprise me.

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The Class Action Lawsuit (UPDATED 9/29)

An anonymous commentor asked a question here about the "Class Action Lawsuit". I thought I'd post a little about that today because it also may be helpful to some who don't know about it. The site I mentioned in "A link to FedEx information for FedEx Employees" has a copy of the lawsuit in their documents section, but you may have to create a login to access this PDF file. Its a free site and they promise not sell your e-mail or send spam. I haven't gone through the site nearly enought, but its a good site to find information.

About the lawsuit. There were three FedEx Ground contractors in California - Estrada, Morgan and Roberts who filed the suit requesting that the judge find, in their favor, that they are "employees" of FedEx based on the nature of the contract. The judge picked through the "contract", which sounds identical to the Home Delivery contract, and ruled that two of the contractors were indeed employees. This was decided 7/26/04. They will go through another round of findings to determine the accounting but what it means is, FedEx will need to back pay these contractors for various things. It will be interesting to see what they will be responsible for.

The reason that he did not find in favor of the third contractor was that he was running more than one truck and they felt that multiple route contractors are indeed independent. They also excluded contractors that formed LLC's and Corporations, Temp Drivers, workers who are contracted by contractors and line-haul drivers.

I found it very interesting to read the document because the Judge really scrutinized the contract. I would recommend that anyone considering a route read it. I'm not sure where the ruling will go nationwide, but it does open the door for other people to file in their states since the precedent has now been set. The fedexaminer.com site did mention that there was a meeting at the filing attorney's office on Monday, September 20 for FHD contractors who qualify so it looks like they may be moving forward in California.

My boyfriend had formed an LLC, like many other contractors at his terminal and that may have been a mistake. He formed "after" the contract was signed, so he may have a shot. But, it is also something to consider if you are already a contractor who may be thinking of forming a company.

UPDATE
This is straight from the website of the law offices representing the Californian FHD Contractors. There you can find the press release as well as a copy of the ruling. I've contacted them to ask if they know of any other states pending lawsuits, since I would believe that lawers elsewhere would be trying to get information. I'll post whatever response I get here.

On July 26, 2004, Los Angeles Superior Court Judge Howard Schwab issued his ruling in the liability stage of the class-action lawsuit Estrada v. FedEx. The decision, issued following nine weeks of trial and extensive post-trial briefing, finds that all single route pickup and delivery drivers employed by FedEx Ground in California are employees, contrary to the Company's attempt to designate them as independent contractors. The Court also found that the drivers have not been indemnified for expenses incurred in the course of their work, and the Court therefore ordered the parties to return for phase two of the trial, in order to determine the extent of the company's monetary obligations toward class members. A more complete summary can be found in plaintiffs' press release announcing the decision.

2 Comments:

At 3:05 PM, Anonymous Anonymous said...

Another Wifes View (family Matters)

I to am the wife of an FHD contractor. Im also the mother of a one year old. I mine as well just call myself a single parent. The hours that my husband put in every day I get to see him only on the weekends. Other than the fact that i share my bed with him at night and give him a kiss goodbye in the morning(while he is sleeping of course)Sunday and Monday are our only days together. Even on Mondays its not all play usually im driving him to STS to get new tires or brake pads. My daughter misses him dearly.
Im so sick of showing up at Saturday family gatherings by myself "oh he had to work...". They always ask me "why didnt he just take the day off?" Yea right like he can afford that. If he didnt have to miss a days pay PLUS pay for a driver I know he wouldn't have missed his daughters first birthday. Im also sick of hearing "Honey were gunna have to wait a while on that health insurance my truck needs six new tires" we supposedly make 64k a year but my daughter was eligible for government health insurance once you subtract expenses and taxes.
They called it easy! They said PERFECT FOR RETIREES AND SOCCER MOMS!!! MAKE YOUR OWN HOURS they said. Yeah thats what they said! to bad there wasn't any fine print that said in accuality you have to show up early, work very late, we will suck you dry of every penny you own and kill your every dream of moving up in the world. My husband comes home every night so stressed that he has no energy, no interest, no amition, nothing He just wants to sleep. I tell him every day that Fed-Ex is killing him and his family. We need to go some where else.
Im currently in school so hopefully one day that will give us some relief. But what now? Were falling more and more in to debt because of this so called business. by the time im out of school we'll be bankrupt. He needs to get out now! But what about the truck?? we can't afford to continue paying for an unused vehicle. It's also tying up our credit, so much for getting a second car.
Besides the fact that he doesnt get paid nearly what he should be for how many hours he works. Fed-ex also treats him like he is a pile of dog shit sitting on the ground. Customer service bad mouths him every chance they get. A customer told him once that he should really have a talk with someone in his terminal becuase she had just gotten off the phone with customer service and they told her that he was and idiot, he was lazy, and he didn't know what he was doing becuase he was new. NEW!! Hes been working there for four years! Another time he found a sheet of paper in his mail box at the terminal that said a customer had requsted that he leave the packages on the front door not at the side door. ok perfectly reasonabe but customer service wrote a note on the bottom that they told the customer he was lazy and he didn't feel like walking to the front door thats why he did what he did. What?! How do they have the right to tell a customer that he is lazy or an idiot? Not only do they bad mouth him to customers but everytime a phone call is made it gets put in as a comlaint. It could be someone calling to find out the status of there package that hasn't even arrived to that terminal yet. Every complaint he gets means no bonus that month. I really dont't understand why he takes all that crap.
Not only do complaints effect your bonus but so do DNA's (did not attempt)So therefore if he had over 100 stops that day in order for him to not violate DOT time. It's inevitable he is going to have DNA's. Bye bye bonus!
Fed-Ex really has a funny way of running thier business. One day they give the drivers a .07 cent raise or 4$ a week for taking on some more contracts. Two weeks later they lower all core zones by 5%. YaY minus a dollar. One day they had one of those meetings that they never give notice for. It was all about safety. SAFETY FIRST!! and all that stuff. The very next day it snowed three feet and they made the contractors drive to the teminal to pick up the packages. They didn't care how they got delivered just deliver them. Most contractors worked on their weekend that week just to catch up.
Basically what im trying to say is unless your completly out of your mind and your not trying to raise a family don't join Fed-Ex!! Fed-Ex Sucks!!!!

 
At 5:26 PM, Anonymous Anonymous said...

I am a new ex-FedEx employee. I was employed for eight years in the FedEx corporate services (sales) division. All was well until June 2004. In my previous 7 years, I had been commended as an excellent acount executive, and recieved excellent reviews. In June 04 my department was closed and I was transfered to a restructured sales district with an former RPS (FedEx Ground) district sales manager as my immediate supervisor. My life changed drastically!! Every aspect of my daily work routine, sales territory management, sales data input and quotas were now micromanaged. I was threatend with termination regularly on a two week basis. Our entire sales group (11 account executives, some with more than 20 years with FedEx) was now subject to management by intimidation. My work day consised of data entry 6am - 8am, territory managememt and sales calls 8 am - 5pm, drive time back home (usually between 6pm-7:30pm), then email correspondence, sales data entry, contract proposal, letters to customers, resolving service issues, etc. to about 11pm each night. Saturday consisted of about 3 hours of further data entry and sales data followup. Sunday evening about 8pm the week started again with about 2 hours of territory sales planning.
This was just to keep from being fired!! I had no life. I ended up in therapy. This was no way to live. There was no light at the end of the tunnel. The only reward was being thankful you still had a job. But at the end of the week the physical, emotional and psychological price paid did not come anywhere near the finacial compenstaion and benefits received. I was uncerimoniouly terminated in June 05. I seems that our esteemed manager needed to make room for a younger, less compensated account executive to better the bottom line.
Thanks for the space to communicate.
An ExFedEx corporate employee

 

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Tuesday, September 28, 2004

Its Part of The Contract

I can't tell you how sick he is of hearing this lame excuse from management. "Its part of the contract".

Today, again, he has over 160 stops to do and it isn't yet peak season. Its raining cats and dogs and he will come home, late, soaked to the bone, asking for soup and could I just bring it up to him in bed. He can't afford not to rest or to get sick. There is no sick time. The packages will wait there for him to drive with 104 fever if he has to.

Why all the stops? well they are still having a problem getting drivers in to cover the contractors that have bailed or that have been "promoted" -- so they are "flexing" some more. Flexing is taking on a great big new dimension lately, which means ignoring the fact that there are core zones and instead looking at the map and adding many more zones on the fly. When they did the song and dance routine when they were recruiting him, however, the story was, "We will never give you more than you can reasonably handle" and "Expect 90-100 stops per day".

Why can they get away with it? Well, they say that his agreement with them is to do this service for them in a manner that enables THEM to remain competative. If you interpret this as it seems to be intended, it means "We, FHD, reserve the right to tell you what to do even though we acknowledge that we can't tell you what to do." OR "this is what we believe needs to be done so we can maintain our competative edge and you've agreed to help us so we will tell you how you must service us". In essence it is double speak and it isn't open for anyone's interpretation or discussion. FHD wants to call the shots and the CONTRACTORS are NOT PARTNERS in fulfillment. There is not a clause that also states that the routes should also be done so that the contractors maintain a healthy life/work balance and can determine what is reasonable.

It isn't news that the contract is FHD biased, but, its days like this that make it even more clear. SO, whatever FHD says can safely be ignored and replaced with this one thought - THIS IS NOT A BUSINESS (actually it's even 5 steps below a franchise). It is putting yourself in debt to BUY A VERY VERY CRAPPY JOB and that is all there is to it.

9 Comments:

At 9:46 PM, Anonymous Anonymous said...

I'm not sure what state you're located in but your boyfriend's terminal sounds alot like ours. They must have all gotten the same FedEx memo on what to say when a contractor complains. The service mgr has been throwing around the phrase "you're jeopardizing your contract" anytime we say anything about being flexed outside of our area. Of course, all this does is make me want to slap him everytime he says it.

Our terminal has already reached the max volume that we had last peak and it's only the end of Sept. And, of course, mgmt is still pushing everyone to get their supplemental drivers ready. Yeah, right. It's going to be along couple of months.

 
At 7:43 AM, Blogger S said...

If you haven't formed an LLC/INC, I think my standard reply would be - Jeopardizing my contract? You are lucky we aren't in California because that contract really isn't valid there now is it? (But hey, I'm just a concerned girlfriend, not actually having to deal with the consequences daily.)

 
At 12:22 PM, Blogger S said...

PS: I'd tell you where we are but then I'd have to kill you. Evidently FedEx Ground management likes to troll the web looking for people bad-mouthing the company and then try and shut their sites down.

 
At 7:49 PM, Anonymous Anonymous said...

being a ground contractor i gave a copy of the lawsuit to my manager fed ex say we lost them before after they appeal they always win this goes back to the rps days anyway here is a guy to contact he represents the akron oh contractors thomas trefethern 1-800-356-8044 or trefethernlaw@aol.com the only thing i can think of is get the dept of labor involved hell iwas going to send a annonomas letter to the usa today

 
At 12:03 AM, Anonymous Anonymous said...

I am also a contractor and I agree with all the complaints of the girlfriend. The independant contractor is a joke. All we do is foot the bills and make them money while we are told how where when and what to do.

 
At 12:03 AM, Anonymous Anonymous said...

I am also a contractor and I agree with all the complaints of the girlfriend. The independant contractor is a joke. All we do is foot the bills and make them money while we are told how where when and what to do.

 
At 7:53 AM, Anonymous Anonymous said...

I feel what all you are going through. I recently left my position as a contractor for FHD in PA. After two years there, leaving being the 5th in seniority was just crazy. I too heard, we won't give you more than you can handle, but that was just BS. I was hired by one terminal manager without knowing that in a year, the former mgr would be coming back from Afghanistan. At peak time, I would wind up with 230 stops when my route handled 120 average. Always hearing the excuse, "my hands are tied" or "come on, be part of the team, it'll get better". I won't get better, trust me. I'm actually starting my own law suit because when I quit, without notice, I knew I wasn't going to get my money in escrow which was a damn fine trade off for me. 3 weeks later I get a call "we've kept your route open, you have to pay the temp and gas". Then trying to say they have someone who wants to buy my truck, but after 2 months of BS, there was no one. I'm out 3 months lease payment, gas (which I'm not paying him) and upkeep. Don't work for FHD, they feed you honey and sugar and make it seem great, but then get there and it's all about the manager. Good luck.

 
At 11:01 PM, Anonymous Anonymous said...

Signing on as a contractor was a large mistake. Four months and I'm done.

 
At 7:52 PM, Anonymous Anonymous said...

The best thing to do IS RUN from fedex. Don't get involved. Its over, they are starting the down slope...
The company is really a joke. I know you think you will be different, but all Fedex does is lower your standard

 

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