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<blockquote data-quote="bacha29" data-source="post: 2948486" data-attributes="member: 58386">Important points indeed, The RPS model was designed to handle business to business boxes that didn&#039;t justify&nbsp; using a tractor trailer or locations it couldn&#039;t get back into. It wasn&#039;t a perfect model but given the limited investment it wasn&#039;t too bad. In fact Roadway actually tried to get us back a few years after it was sold. When Fat Freddy got a hold of it one of the first things to go was the distinction between contractor and employee .The only remaining difference was that migrant farm workers had greater rights under the law than a contractor. As for the profitable years you mentioned X had to throw more money out there than they would have liked in an effort to stem the turnover. One of the many benefits of the ISP transition X will realize going forward will be the tougher terms it will be able &quot;negotiate&quot; with the significantly reduced number of contractors while still requiring them to commit even more capital with it&#039;s fate and returns still under the complete control of X. Furthermore the nearly three quarters of a billion dollars it has to pay out to settle the majority of class actions remaining will be recovered rest assured and it will most likely&nbsp; come right off the contractors who remain. Obviously the Smart Post offer is an experiment to see in terms of pay rate how low you&#039;ll go which X will no doubt use to it&#039;s benefit in future negotiations.</blockquote>

[QUOTE="bacha29, post: 2948486, member: 58386"] Important points indeed, The RPS model was designed to handle business to business boxes that didn't justify using a tractor trailer or locations it couldn't get back into. It wasn't a perfect model but given the limited investment it wasn't too bad. In fact Roadway actually tried to get us back a few years after it was sold. When Fat Freddy got a hold of it one of the first things to go was the distinction between contractor and employee .The only remaining difference was that migrant farm workers had greater rights under the law than a contractor. As for the profitable years you mentioned X had to throw more money out there than they would have liked in an effort to stem the turnover. One of the many benefits of the ISP transition X will realize going forward will be the tougher terms it will be able "negotiate" with the significantly reduced number of contractors while still requiring them to commit even more capital with it's fate and returns still under the complete control of X. Furthermore the nearly three quarters of a billion dollars it has to pay out to settle the majority of class actions remaining will be recovered rest assured and it will most likely come right off the contractors who remain. Obviously the Smart Post offer is an experiment to see in terms of pay rate how low you'll go which X will no doubt use to it's benefit in future negotiations. [/QUOTE]

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