For most companies, people who work full time, receive regular pay and wears a company uniform to work would be considered an employee. From this article, FedEx is not one of those companies. FedEx drivers are instead treated as independent contractors and do not receive any overtime pay nor contributions to their Social Security benefits. By doing so, FedEx is able to gain a competitive advantage by removing the costs traditionally associated with employees. According to Agostino Scalercio, a FedEx driver, 30 – 40 percent of his salary was deducted in order to cover expenses for his truck and uniform thanks to his status as an independent contractor. To top it all off, independent contractors are not covered by employment protections and are not permitted to unionise.

Although FedEx is gaining this competitive advantage, it is doing so at the cost of employee loyalty and public image. FedEx claims that this business model is “highly successful and beneficial” for both contractors and FedEx itself. The way I see it, this model is anything but beneficial for the contractors, while very much so for FedEx. Exploiting technicalities in business law in order to cut down worker compensation shows that FedEx is severely lacking in moral fibre.

Image: http://www.ctvnews.ca/health/fedex-charged-with-delivering-drugs-for-illegal-pharmacies-1.1919824

http://www.businessweek.com/articles/2014-10-16/fedex-ground-says-its-drivers-arent-employees-dot-the-courts-will-decide#r=discussed