Squeezing the American Dream: Workers Face Diminishing Returns

By Nicholas von Hoffman, Truthdig
Posted on June 9, 2008, Printed on June 9, 2008
http://www.alternet.org/story/87405/

You may be surprised to learn that the pleasant person from FedEx Ground delivering your package owns the truck which he or she has parked in front of your house. FedEx Ground drivers, you will find out in Steven Greenhouse's The Big Squeeze: Tough Times for the American Worker, are not FedEx employees.

They are what are called independent contractors, although it demands no little effort to discern what about their position is independent. If they do not do what they are told, their contracts are abrogated forthwith. They are required to buy their own truck with 60 monthly installments of $781.12, which comes to $46,867.20. Plus there is a final kicker payment of $8,000, all of which adds up to a grand total of almost $55,000. On top of this, as an independent business person, the driver must bear the costs of insurance, maintenance, fuel, repairs and the fee for the FedEx uniform rental.