UPS, a successful company that has many admirable qualities, is pressuring lawmakers to prevent companies like Federal Express--which happens to be UPS' chief competitor--from classifying its drivers as independent agents. The drivers do better under the FedEx model--they make more money--and its clients--are spared the occasional strike, as what happened to UPS in 1997 and 2002.
From Jim Waters of the Bluegrass Institute:
Attorney General Jack Conway filed a lawsuit in Franklin Circuit Court on Sept. 2 that could deny FedEx the freedom to classify its drivers as independent contractors.Spicer makes about four times more than his UPS counterpart. And Conway wants to successful entrepreneurs such as Spicer. And yes, entrepreneurs can drive a truck--it's the American Way.
Conway doesn't just want to force [FedEx Ground driver Paul] Spicer and other contractors to become employees. He wants to penalize FedEx for violating unemployment-compensation and tax-withholding policies — and force the company to pay $10 million.
In the lawsuit, Conway accuses FedEx of cheating, labeling its operations "unfair trade practices."
But saying FedEx operates unfairly because it found an innovative, industry-changing way of delivering packages is like saying Harry the surgeon should not make more money than Terry the tire repairman.
Harry chose to pursue a medical career. Terry did not.
Related post:
"Tough son of a b*&!" and apron dancer Jack Conway: Kentucky Senate race
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