fedex home delivery hr model for drivers
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FedEx Home Delivery HR Model for Drivers. Wilmington, Mass, 32 contractors at 2 facilit. Recruitment Independent Contractors DOT driver requirements (e.g. license, drug screen) Operating Agreement - “take-it-or-leave it” drivers are ind. contractors

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fedex home delivery hr model for drivers
FedEx Home Delivery HR Model for Drivers
  • Wilmington, Mass, 32 contractors at 2 facilit.
  • Recruitment
    • Independent Contractors
    • DOT driver requirements (e.g. license, drug screen)
  • Operating Agreement - “take-it-or-leave it”
    • drivers are ind. contractors
    • 14-Day FedEx Home Developed Training Prog.
    • FedEx Home may not determine breaks, hours, or routes taken
    • Must meet FedEx performance stds.
operating agreement cont
Operating Agreement (cont.)
  • Wear Fed Ex Home Uniforms
  • Maintain personal appearance
  • Termination by driver or FedEx if business in area declines
  • Vehicles
    • Purchased (prices from $15-38,000)
    • Maintained by drivers
      • Normal operating maintenance and upkeep
      • DOT Standards for safety
      • FedEx Home standards for appearance and signage
    • Use
      • While delivering FedEx packages Tu-Sat as required), no other uses
      • May use vehicle for revenue when not on FedEx routes, 1 driver did so
  • Package Delivery
    • Service delivery area determined and may be changed by FedEx home
    • Must deliver all packages on truck scheduled for that day
    • Must permit FedEx Home management to ride with them from time to time
      • 2 all day service rides per year
      • Given packages but may deliver in order chosen
      • Deliveries based on customer contacts to FedEx Home, not drivers
operating agreement cont3
Operating Agreement (cont.)
  • Compensation 2005 – main elements
    • per stop
      • $1.29 regular
      • $6.50 per appointment
      • $2.75 evening
      • $.50 for signature
    • $.22 per package
    • $.20/mile between 201 and $400
    • No fringe benefits
    • Bonuses based on meeting Fed Ex performance goals
    • Total Gross Revenue
      • Median and Mode $60-$90,000
      • Range
        • High >$150,000
        • Low $3500
operating agreement cont4
Operating Agreement (cont.)
  • Purchase scanners and Business Support Package
  • Insurance partially provided by drivers through a preferred vendor
  • Time off
    • purchase time off through program and FedEx Home will assign a “swing contractor”
    • Hire someone to drive route if approved by Fed Ex Home
  • Multiple route drivers must hire other drivers who must be approved by FedEx Home
    • 3 of 32 drivers
  • Routes may be sold
    • Buyers must be acceptable to FedEx Home
    • Only 1 route sold
rd analysis
RD Analysis
  • 6 Cases all found drivers ees
    • 3 Roadway cases
    • 3 FedEX Home cases
  • Bases for finding of ee status
    • All do business in name of FedEx Home rather than their own names
      • uniforms
      • Logos
      • Vehicle specifications
      • FedEx Home training
    • Non-Fed Ex work
      • Not while delivering for Fed Ex
      • During off hours but no drivers do so
        • Due to constraints of relationship with Fed Ex-
rd bases for finding of ee status cont
RD Bases for finding of ee status (cont).
  • FedEx maintains substantial control over performance
    • Determines and can change service area
    • Establishes Tu-Sat schedule
    • Determines day of delivery
      • Constrains control over daily schedule and breaks
    • “take-it-or-leave-it” agreement
    • Rates of compensation established by Fed Ex Home
    • Bonuses tied to compliance with guidelines
    • Business support for drivers
fedex home delivery v nlrb ca dc 2009
FedEX Home Delivery v. NLRBCA DC, 2009
  • Delivery drivers are independent contractors (IC’s) and therefore not covered by NLRA
    • Denies enforcement of NLRB finding of refusal to bargain
  • Reasoning
    • “Right of Control” test accepted since late 1960’s but definition of “control”is ambiguous
      • Criteria
        • Supervising performance?
        • Monitoring performance?
        • Improving performance?
      • Court looking for an objective, “bright line” test
    • Criteria for IC’s evolved
      • Significant entrepreneurial opportunity for gain or loss
      • May use trucks for own purposes if they mask FedEx logo
      • Fact that many contractors do not use trucks to earn income is less important than the fact that they may so use them
    • Other factors
      • May hire additional drivers
      • May operate multiple routes
      • May sell routes
fedex home delivery v nlrb ca dc 20098
FedEX Home Delivery v. NLRBCA DC, 2009
  • Dissent
    • No evolution to entrepreneurial opportunity as the major factor
      • One factor among many
    • FedEx Home-created obstacles to use of ent. opportunity
    • Multi-factor analysis
    • RD correct
restatement of agency
Restatement of Agency
  • In determining whether one acting for another is a servant or an independent contractor, the following matters of fact, among others, are considered:
  • (a) the extent of control which, by the agreement, the master may exercise over the details of the work;
  • (b) whether or not the one employed is engaged in a distinct occupation or business;
  • (c) the kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;
  • (d) the skill required in the particular occupation;
  • (e) whether the employer or the workman supplies the instrumentalities, tools, and the place of work for the person doing the work;
  • (f) the length of time for which the person is employed;
  • (g) the method of payment, whether by the time or by the job;
  • (h) whether or not the work is a part of the regular business of the employer;
  • (i) whether or not the parties believe they are creating the relation of master and servant; and
  • (j) whether the principal is or is not in business.