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United Parcel Service, Inc. Message Board

  • dudesbag dudesbag May 29, 2013 8:52 AM Flag

    FDX ground workers healthcare issue

    A poster on the FDX board brings up a good point. Many of us rant against the dubious use of the independent contractor model by the FDX ground system. The use of IC's is strictly a cost saving measure as all costs associated with a regular employee are passed on to the individual. The poster states that the state of Connecticut (where UPS was once domiciled) pays over $2B into the medicaid system to provide medical services for uncovered workers. In effect, this type of state expenditure is used nationwide to subsidize the tens of thousands of FDX ground IC's who can't afford to buy insurance on their own. FDX has argued that the ideal scenario for their IC model is to have one individual own several routes and subcontract them out to others. This perpetuates an outcome where only the "top dog" might do well- much like the Herbalife pyramid scheme being challenged by hedge fund manager Bill Ackerman. FDX even avoids paying into the U/C system as those employees are not eligible for U/C benefits even when laid off. If nothing else, it should be recognized that only one of the 2 stand out package transport firms provides all its employees with the standard benefits that should be expected from respected and admired companies. .

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