The Threat of Self-Insured Businesses

Despite the Affordable Care Act’s, or ACA, sweeping reforms, which are making health care more accessible and bringing Americans greater protections and increased benefits, people of color may still be at risk of facing the problems that plagued the system before. Under the ACA,millions of Americans have already gained coverage and protections that they did not have previously, saving many from some of the hardships of illness or injury. Unfortunately, employees of small businesses—particularly minority employees—may not enjoy the positive changes that the ACA is bringing to the country. Evidence shows that small-business employers may be considering a practice called self-insurance, which could jeopardize the quality, affordability, and accessibility of health care for employees of color.

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FedEx Investor Relations FDX; A Post from the "Brown Cafe"

Dear FedEx Investor,

You need to be made aware that you have invested in a seriously mismanaged company. Short-term, your investment may do well, but long-term, holding FDX shares might be a problem. There is one thing keeping FDX shares high at the present time, and it is the FedEx Ground operating company. FedEx Ground is a contractor-based business model, in which most workers are paid very little and receive no benefits at all. The Federal Express corporation oversees operations, but all drivers are not classified as employees, even though they should be. This is a matter with possibly severe legal implications for FedEx in the future.

In short, FedEx Ground is carrying the water for the other operating companies. Without the low-cost Ground division, FedEx would probably be well on it's way to bankruptcy...it's that poorly managed. Our top executives reward themselves richly, while simultaneously alienating and lowering the wages and benefits for employees who actually work for FedEx as employees. Employee satisfaction and customer service are at all-time lows, and turnover is high and getting higher by the day as employees realize that FedEx doesn't care about them or the way they service customers.

In fact, FedEx does everything possible to cheat customers, through intentional overbilling and by failing to provide services that the customer has paid a premium to obtain. FedEx Express just settled a large case out-of-court for intentional overbilling, and more are probably in the pipeline. Customers who pay a large premium for First Overnight services frequently have their shipments ignored, or diverted to the later PO service. Sometimes this occurs because there simply aren't enough employees under the current cost-cutting business model, or FedEx simply chooses to save itself money by not providing the service as promised. If you try and recover your money, be prepared to be lied to and diverted away from the true reasons you didn't receive the level of service you paid for. This is Standard Operating Procedure at FedEx...LIE to the customer whenever possible and hope they don't follow-up and discover why their package(s) weren't delivered on-time, or perhaps not at all.

FedEx has invested a tremendous amount of money in faulty delivery technology, as system referred to as DRA. This system creates a scenario in which packages are frequently delivered late, or possibly not at all on the scheduled day because it creates routes which are inefficient and/or unable to be covered due to staffing shortages.

If you are a large investor, you need to investigate the leadership of FedEx, because even with all of the cost advantages that have been afforded the company through favorable legislation and a non-union workplace, they continue to underperform from a profit perspective. With few exceptions, they are incompetent, and need to be replaced with knowledgeable leaders capable of generating profit levels consistent with the operational advantages provided them.

From an ethical perspective, FedEx has serious issues. If you are an investor with a conscience who prefers to sink their money into a company with ethical business practices, perhaps you should look elsewhere. Long-term, this lack of ethics has the potential for serious legal costs and large settlements not in favor of the Federal Express Corporation.

How to Start Rebuilding the Working Class

Wednesday, June 19, 2013

With so many obstacles to rebuilding the middle class, where should Washington start? One easy answer: "President Obama could bring some relief and set a good example. He has the power with his presidential pen to require a minimum-wage increase for employees of businesses, including fast-food vendors, that have contracts with the federal government. It wouldn't relieve all low-wage workers, but it would be a powerful place to start."

Fast-food workers echo 'Occupy' spirit - Chicago Tribune 

Another obstacle to rebuilding the middle class: Big corporations are turning a blind eye to labor violations at their franchises. "Big corporations like McDonald's and 7-Eleven exert a lot of control over their franchise owners when it comes to things like branding and the products they sell. When it comes to labor standards, though, it's almost like corporate management doesn't care at all, as two recent cases remind us." If we want a strong middle class, one of the most critical steps is ensuring workers have the right to form a union if they so desire.

McDonald's and 7-Eleven franchise owners push the exploitation envelope - Daily Kos 

We need to change the narrative and attitude in Washington that the working class is just lazy, and that the only people who matter are wealthy corporate donors. The working class is more productive than ever, but the gains from this productivity are going to the wealthiest among us. It's time Washington gets the message that when working-class Americans do better, everyone does better.  We need to raise our voices so that Washington finally gets the message. 

Banishing the Poor, Unemployed and Working Class from the Mainstream Media Implies That They are Worthless - Truthout

FedEx: Ties to the American Legislative Exchange Council (ALEC)

FedEx is the world's largest express transportation company, delivering some 3.3 million packages daily. It includes FedEx Freight, which hauls heavier items throughout the U.S., and FedEx Kinko's, which offers copying, printing, and graphic design services and sells office supplies, and serves as a drop-off point for customers mailing packages. ^[1]

Ties to the American Legislative Exchange Council

FedEx lobbyist Bill Primeaux is on the Executive Committee of the American Legislative Exchange Council's (ALEC's) Commerce, Insurance and Economic Development Task Force as of 2011.^[2] [3] It was a "Vice-Chairman" level sponsor of 2011 American Legislative Exchange Council Annual Conference, which in 2010, equated to $25,000.^[4] FedEx was also the sponsor of the ALEC 39th Annual Meeting Preview Reception.^[5]

About ALEC

ALEC is a corporate bill mill. It is not just a lobby or a front group; it is much more powerful than that. Through ALEC, corporations hand state legislators their wishlists to benefit their bottom line. Corporations fund almost all of ALEC's operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps vote with elected officials to approve “model” bills. Learn more at the Center for Media and Democracy's ALECexposed.org, and check out breaking news on our PRWatch.org site.

Recent Controversyhttp://www.sourcewatch.org/index.php/FedEx