subject: Fedex Imposes New Standards On Its Us Parcel Delivery Drivers [print this page] With an estimated 12,000 independent contractors playing a very important role in delivering the companys international shipping requirements, FedEx is especially keen to ensure that all those staff meet its high standards. That is why the corporation in May 2010 gave the drivers notice that it would be imposing new business quality standards on their operations, and changing the terms of their contracts.
Announcing the clampdown, FedEx said it would now insist on all its contractors being designated as incorporated businesses. Before this stipulation, many were categorised as sole proprietors or partnerships. This had legal implications for FedEx, as it was not obliged to offer the workers the same employment terms as those granted to its contract staff.
There was also criticism from some state governments and other company observers, who were concerned that FedEx was incorrectly designating the drivers in an attempt to save money.
Now though, as individual courier companies incorporated by the state in which they are based, they are subject to state controls, and are required to give their staff equal benefits to full-time employees such as holiday and sickness pay.
FedEx wrote to all its independent contractors to tell them of the changes, and in that letter said that the move was in response to concerns from individual states, and strictly a business decision. While these moves strengthen the position of the contractors as individual businesses, yet operating separately from FedEx, the company did not comment on why it was taking this step at the time it was (May 2010).
There had been threats by some states some months earlier, however, of possible legal moves to clarify the drivers position and their rights. In some states, FedEx has separate agreements with independent companies which contain variations in the standard employment contract offered to direct employees. FedEx gave its contractors 180 days from the date of issuing the new standards, in mid-May 2010. It promised financial rewards for those who sign up before the end of February 2011.
The imposition of uniform standards across many parcel delivery companies is an attempt by them to present a team image to clients and those to whom they deliver.
When a courier company sets up in business, having a uniform corporate image is seen as one of the most fundamental requirements. And of course, this is equally important for FedEx as for many smaller home delivery operators, as they all seek to establish a distinctive presence, whether in a single neighbourhood, or across huge numbers of countries across the world.
