I will say it’s funny to hear “cheap labor “ We’re about as cheap as it gets. UPS makes a lot more , DHL makes more , Amazon has caught us. Other than benefits, my 21 old kid makes 3 dollars less part time because he’s in school.
How much should we make , 7.50 an hour ?
I think a big part of this is also to take advantage of having a taxpayer-subsidized workforce. Ground drivers usually have zero benefits and by eliminating most Express employees, Raj can save himself some additional money besides wages. WalMart has been doing this forever by paying employees low wages
and not offering benefits .After a
year of employment Walmart employees can apply for some pretty crappy benefits, meaning the rest of us who DO pay taxes then subsidize the healthcare costs of their workers. Given the revolving door of retail, that's a pretty good deal....for the Walton family.
WalMart is the largest US employer BTW. So, Raj &Friends are going to do them one better, because as far as I know only actual FDX Ground
employees are offered benefits, not contracted drivers.