NAILED IT!. Publicly funded social program benefits will be used to assist and support contractor employed individuals not only during the time of their employment but all through their lives from a standpoint of old age public benefits available to low income seniors.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.
Fat Freddy and Raj's vision of restructuring their company could be better described as "Walmartizing" their company.