P&D Contractor Familiarization Program CR-014 03/11 Table of Contents TABLE OF CONTENTS ........................................................................................ I COMPANY INFORMATION ................................................................................. 1 Welcome to FedEx Ground! .................................................................................................................... 1 The FedEx Family of Companies ........................................................................................................... 2 The Purple Promise................................................................................................................................... 4 SERVICE OFFERINGS AND INDUSTRY STANDARDS ..................................... 5 Tracking of Packages ............................................................................................................................... 5 RESIDENTIAL VS. BUSINESS DELIVERIES .................................................... 12 Services offered by FedEx Ground and FedEx Home Delivery ................................................... 13 Call Tags .................................................................................................................................................... 23 Call Tag Scanner Screen ....................................................................................................................... 24 Indirect Delivery ....................................................................................................................................... 25 Driver Release .......................................................................................................................................... 26 Door Tags/Delivery Notices .................................................................................................................. 30 Shipment Release Authorization ......................................................................................................... 33 Signature Services .................................................................................................................................. 35 Alcohol Shipment .................................................................................................................................... 36 FedEx Home Delivery Premium Services .......................................................................................... 38 Service Cross ........................................................................................................................................... 40 Use of Electronic Tracking Equipment .............................................................................................. 42 Business Misdeliveries .......................................................................................................................... 43 Residential Misdeliveries....................................................................................................................... 44 THE OPERATING AGREEMENT....................................................................... 45 Background Statement .......................................................................................................................... 45 i SETTLEMENT .................................................................................................... 55 Settlement Record ................................................................................................................................... 55 FedEx Ground Settlement Record ...................................................................................................... 56 FedEx Home Delivery Settlement Record ......................................................................................... 62 SAFETY AND SECURITY .................................................................................. 68 Non-Vehicular Injuries (Accidents) ..................................................................................................... 69 Accidents/Injuries General Information ............................................................................................. 69 Workers Compensation ......................................................................................................................... 70 Security Practices ................................................................................................................................... 74 ETHICAL AND PROFESSIONAL STANDARDS ............................................... 76 Uniforms .................................................................................................................................................... 77 CONTRACTOR RECOGNITION PROGRAMS .................................................. 78 CONTRACTOR COMMUNICATIONS ................................................................ 79 MyGroundBizOnline ................................................................................................................................ 79 CONTRACTOR RELATIONS ............................................................................. 82 ii Company Information Company Information Welcome to FedEx Ground! In less than two decades, FedEx Ground has grown from a startup to a multi-billion dollar company - making us one of the fastest growing transportation companies in history. The future is just as exciting. The entrepreneurial energy and innovative spirit of Independent Contractors and Independent Service Providers, reinforced by the power of the FedEx brand’s unsurpassed Service Culture, lays the groundwork for continued growth. This guide provides an overview of FedEx, explains the roles and responsibilities of Independent Contractors, details FedEx Ground’s/FedEx Home Delivery’s service offerings, and provides other useful information for Independent Contractors beginning a contractual relationship with FedEx Ground. FedEx Ground’s Mission Statement FedEx Ground will be the best small-package ground delivery company serving business and residential customers in North America. Independent Contractors - The Link between Customers and FedEx Ground One of FedEx Ground's strengths has always been - and continues to be - our relationships with customers, and our independent contractor workforce is a part of that. Our independent contractors provide our customers with exceptional service because Independent Contractors view its work as its business. Each Independent contractors own its own trucks and hire its own workforce, which wear the FedEx brand. 1 Company Information The FedEx Family of Companies FedEx Corporation provides integrated transportation, information, and logistics solutions through a powerful family of companies. Each company operates independently, but competes collectively, and is managed collaboratively. FedEx Express - The world’s largest express transportation company. FedEx Ground - North America’s second largest ground small-package carrier. FedEx Home Delivery - The only service of its kind dedicated to residential customers, FedEx Home Delivery provides guaranteed options to fit the way people live, work and shop today - delivering in the evenings, on Saturdays and even by appointment. FedEx Freight - One of the nations leading regional Less-than-Truckload (LTL) freight companies. FedEx Custom Critical - The world’s largest surface expedited carrier. FedEx Trade Networks - A high-technology customs broker and trade facilitator. FedEx Services (Solutions and Technology) - A non-operating company that consolidates the sales, marketing, and information technology functions for FedEx Express and FedEx Ground. FedEx Office (Office and Print Center) - A retail offering company that specializes in copying, printing, and finishing; photo kiosks and enlargements; signs and banners; highspeed wireless and wired Internet access; packaging and shipping services. FedEx SmartPost – A package service that specializes in the consolidation and delivery of high volumes of low-weight, less time sensitive business-to-consumer packages using the United States Postal Service for final delivery to residences. FedEx National – A one stop solution for less-than-a-truckload shipping needs. FedEx Global Supply Chain Services – Offers a portfolio of services to help turn supply chain management into a competitive strategy. 2 Company Information FedEx Ground FedEx Ground revolutionized the small-package ground market in 1985 and has been on the go ever since. By being the first small-package ground carrier to use bar coding and automated sortation technology, the company provided customers with shipment data never before available. Now in the 21st century, the company remains the only small-package ground carrier operating a network of automated stations. FedEx Ground treats small-package shipping like the important business function it is. The result is a “win-win” situation for every customer - competitive pricing with valueadded technology. FedEx Home Delivery FedEx Home Delivery is the only ground service dedicated exclusively to residential delivery and the first service to extend a Money-Back Guarantee. Created in response to shipper demand for a better ground delivery solution for the residential market, FedEx Home Delivery offers the most comprehensive level of service. This includes standard evening and Saturday delivery and unmatched premium service options such as day-specific and guaranteed appointment delivery all at competitive rates. FedEx Home Delivery is focused on meeting the needs of online retailers, catalog merchants, and others whose business depends on high quality, cost efficient home deliveries. In meeting the specific needs of an expanding business-to residential delivery market, FedEx Home Delivery is designed to fit the way people live, work and shop today. 3 Company Information The Purple Promise At FedEx Ground we deliver The Purple Promise. The Purple Promise is FedEx’s commitment to deliver a positive customer experience. “I will make every FedEx experience outstanding” The Service Culture is the environment that we have created and maintained to support, Quality is the science we use within the nurture, and deliver our commitment (the FedEx environment (the Service Culture), Purple Promise). providing the tools FedEx people and systems use to deliver the positive The Shared Values reflect the integrity we experience (the Purple Promise). embrace in practicing Quality (the science), creating the Service Culture (the The company mission is the goal that sets environment), and delivering the Purple the direction for delivering the Purple Promise (our commitment). Promise. 4 Service Offerings and Industry Standards Service Offerings and Industry Standards Tracking of Packages Bar codes On March 11, 1985, a start-up company put a label with 33 precisely spaced black lines on the outside of a package, and changed the direction that the small-package industry would travel from that day forward. These precisely spaced black lines represented a bar code, and this emerging technology made it possible not only to track a package's movement, but also to sort it using automation to get it to its destination and to bill it more accurately. The bar code even made possible the invention of whole new ways, until then undreamed of, to add value in the form of information on a plain cardboard box. Bar codes provide many benefits to customers including: • • • • • • Ensuring the best-possible guaranteed service Providing real-time information regarding the status of shipments Ensuring data capture is accurate and complete Minimizing the handling of packages Improving shipment integrity Ensuring accurate billing 5 Service Offerings and Industry Standards Types of Bar Codes Shippers have a choice of several bar code combinations to suit their needs. Therefore, Bar Codes come in many different configurations: • • • • 2D 96 I 2 of 5 00 2D bar code (also know as a PDF 417) I 2 of 5 bar code (Interleaved 2 of 5) 96 bar code (also know as 128) 00 bar code 00 bar code (also known as an SSCC) 6 Service Offerings and Industry Standards Sample Bar codes 7 Service Offerings and Industry Standards Sample Bar codes Ground Collect Home Delivery • • • Class of Service (9611804) Shipper ID 1234567 Package Number 00000015 8 Service Offerings and Industry Standards Sample Bar codes Home Delivery Ground 9 Service Offerings and Industry Standards Common Labels A single shipping label, also known as the “common label,” was recently introduced for use by both FedEx Express and FedEx Ground. This new shipping label features a twodimensional bar code and provides the same bar code format and label layout for FedEx Express, FedEx Ground, and FedEx Home Delivery. 10 Service Offerings and Industry Standards Enlarged View of the FedEx Ground Common Label as compared to a FedEx Express Common Label. FedEx Ground contractor’s employees are to pickup only FedEx Ground and FedEx Home Delivery packages. When reviewing the shipping labels with the new common label, packages can be identified by looking for the FedEx Ground logo, the words FedEx Ground or FedEx Home Delivery, and a letter 'G' or 'H.' The new common label for Express looks very similar Ground labels, but can be distinguished upon inspection. Express labels will display the FedEx Express logo, the letter 'E' and a special routing bar code. Be careful to ensure that Express packages are not mistakenly picked up because of similar-looking labels. Remember, contractors’ employees and their personnel should NOT pick up Express packages. 11 Service Offerings and Industry Standards Residential vs. Business Deliveries A residential delivery is a delivery made to a home or private residence, including locations where a business is operated from the home. While the following chart is not an exhaustive list, it can be used as a guide to determine whether a location is a business or a residence. If the delivery attempt is to a recipient at a… And the location is in… Then enter the stop as a… Business where someone also lives, such as a: • Ranch or farm • Dental or doctor’s office • Veterinary Office • Insurance agency • Repair or retail shop Same Building Residence Different building Business Home where recipient sells/distributes Avon, Tupperware, or other products using the home as a base. Residence Multiple unit residence, such as: • Apartment building • Condominium • College dormitory • Retirement Community • Nursing home Business location, converted from a residence where no one lives Funeral home, prison, or firehouse Residence Church Business Rectory, convent, or parsonage Residence Business Business Note: The four cases above are the only situations to be considered residential. 12 Service Offerings and Industry Standards Services offered by FedEx Ground and FedEx Home Delivery Collect Service Collect is a service that FedEx Ground provides to customers whereby FedEx Ground directly bills the shipping charges to the recipient, rather than the shipper. The recipient is billed based on the collect recipient code and abbreviation recorded by the contractor’s driver at the delivery stop. At the time of delivery, it is important to capture the proper recipient code and abbreviation to eliminate billing errors and ensure customer satisfaction. Identifying Collect Packages Collect packages will have the word “Collect” printed on the bar code label. In addition, the scanner will prompt the user to scan the Recipient code. Below is an example of the differences between Prepaid and Collect bar code. Prepaid Bar Code Collect Bar Code FedEx Ground service type. 13 Service Offerings and Industry Standards Collect Placard As mentioned on the previous page, the recipient, rather than the shipper, will be billed for collect shipping charges. The invoice is based on the collect recipient code and abbreviation that can be found on the collect placard. Scanning this placard, which is posted at the recipient location, will link all collect packages delivered to the recipient information on the placard. In order to ensure collect recipients are billed correctly, it is vital that the collect recipient number is captured at the time of delivery. This number is used to create an invoice for the recipient for all collect packages that were delivered. Without this number, packages will not be invoiced and will be shipped for free. If the recipient is not an authorized Collect recipient (verified by reviewing the Collect Recipient Listing), choose the “Invalid” button on the scanner for invalid collect recipient. The scanner will prompt to enter the business name of where the packages are being delivered. • Using the wrong collect recipient number may result in customer complaints regarding incorrect invoices. • Failing to capture the collect recipient number at delivery will result in delayed invoicing of packages. Reminder! In order to ensure that Collect recipients are billed correctly, it is vital that the collect recipient number is captured at the time of delivery. This number is used to create an invoice for the recipient for all collect packages that were delivered. Without this number, packages will not be invoiced and will be shipped for free. INDER! 14 Service Offerings and Industry Standards What if a driver can’t find the collect placard at the recipient's location? • • • Every collect recipient should have a collect placard accessible in their receiving area If a collect placard is missing: - The contractor’s employee obtains the collect recipient code by using their copy of the collect recipient listing. - The contractor business contact informs station management that a replacement placard is required. - The station creates a replacement placard. - The contractor’s employee posts the collect placard the next day at the recipient's location. When new collect recipient accounts are set up, that customer should receive collect placards from PGH. ¾ 15 Service Offerings and Industry Standards C.O.D. C.O.D. stands for “Collect on Delivery,” which is another service provided to shippers by FedEx Ground. The shipper specifies a C.O.D. amount and the contractor collects that amount from the recipient upon delivery. The specified amount can be for any value, however, it is usually the value of the contents plus shipping charges. Once the contractor’s employee has collected and submitted the appropriate funds to the station, FedEx Ground routes those funds back to the shipper. Types of C.O.D. tags There are two types of C.O.D. tags: • • Multipiece Thermal 17 16 Service Offerings and Industry Standards Multi-piece C.O.D. Tags There are two types of Multi-piece C.O.D. labels. Samples are shown below. These are two-part, adhesive backed labels that will be affixed directly to the package. The top copy of the label is removed when delivered and returned to the station with the C.O.D. funds. Delivery Process – C.O.D. Tags • • Funds collected from recipients are returned to the station with the top copy of the C.O.D. Label. If the package does not contain a C.O.D. tag, or if the C.O.D. tag is damaged, a Status Code 22-“No C.O.D. tag, package not delivered” is applied and the package returned to the station. 17 Service Offerings and Industry Standards Thermal C.O.D. Labels Thermal C.O.D. Labels enable the shipper to print bar code labels and C.O.D. tags on the same printer. 'Thermal' refers to the type of printing method used a thermal printer. At the Shipper Three labels will print on the label printer for each C.O.D. package. The first label is the usual package label. This label is applied directly to the C.O.D. package. (See example on right.) The shipper will also apply a Thermal C.O.D. pouch to the C.O.D. package itself by removing the back of the pouch to expose the adhesive. Two duplicate labels will also print following the first bar code label. The shipper will slide BOTH of the labels into the pouch through the open end, and then seal the pouch. Upon Delivery Contractor scans any bar code on the package label or the C.O.D. tag. All of the bar codes are encoded with the same tracking ID and the C.O.D. service code. The C.O.D. amount that is due is shown on the tags that are in the pouch. To remove the C.O.D. tag, the contractor should: • • • • Separate the plastic at the dotted line near the bottom of the pouch. Remove BOTH labels from the pouch. Collect the C.O.D. funds. The type of funds required is shown below the C.O.D. amount on the C.O.D. tags. The scanner will also indicate the type of funds required based on the service code Give one tag to the recipient as a receipt. Return the other tag with the proper C.O.D. fund to the station. 18 Service Offerings and Industry Standards NOTE There should be two tags in the C.O.D. pouch: one for the recipient and one for the contractor‘s employee to return to the station. If : • • • No pouch and no C.O.D. tags, contractor’s employee returns the package to the station, uses status code 22 'No C.O.D. tag - package not delivered' One tag in the pouch and one tag applied to the box, contractor’s employee leaves the one tag on the box as a receipt. Retains the other tag to return to the station. Both C.O.D tags applied to the box, contractor’s employee attempts to remove one tag from the box to return to the station. 19 Service Offerings and Industry Standards C.O.D. Guarantee Funds TE This label will appear on the package. Contractor’s employee delivers the package to the SHIP TO address. This package is a Guaranteed Funds C.O.D. – contractor’s employee to collect only a cashier’s check, certified check, or money order! There will be 2 tags like this in the C.O.D. pouch • • One tag goes to the recipient for payment. One tag is returned with the C.O.D. fund to the station. The C.O.D. amount and required type of payment are indicated on the tag. 20 Service Offerings and Industry Standards What type of payment should I collect? For Currency • • • The word 'CURRENCY' will be on the bar code. The amount of the C.O.D. must be $750.00 or less. Contractor’s employee only collects CASH. If the amount of the C.O.D. is larger than $750.00, contractor’s employee brings the package back to the station and alerts management. For Guaranteed Funds The words 'GUARANTEED FUNDS' will be on the bar code Contractor’s employee can only collect: • Cashier’s Check, • Certified Check, or • Money Order For Regular C.O.D. Neither 'CURRENCY' nor 'GUARANTEED FUNDS' will appear on the bar code • • Any form of payment is collectible Contractor’s employee can refuse cash if he/she feels they are at risk. C.O.D. TYPE: COLLECT: Currency Cash Only Cashier’s Check Certified Check Money Order Any Guaranteed Funds Regular 22 C.O.D. Not Ready? If a contractor’s employee attempts to deliver the C.O.D. and the recipient is available, but does not have the required funds in the correct form, then scan the package with a status code 24, No C.O.D. money/call tag not ready can be used. 21 Service Offerings and Industry Standards C.O.D. Who gets what? The recipient upon proper payment should receive: • • The C.O.D. package One copy of the C.O.D. tag The contractor’s employee should return to the station with: • • The proper C.O.D. funds - the correct amount and then proper payment type One copy of the C.O.D. tag A contractor’s employee may release the package to the recipient only after he/she has received the full C.O.D. amount. Additional C.O.D. Points to Remember 1. All checks must: • • • Be payable to the shipper, not FedEx Ground Include a signature Include the current date or 5-7 days prior to delivery. Do not accept “postdated” checks. 2. If unsure of the check type, a contractor’s employee can contact management at the station before accepting the C.O.D. payment. 3. Temporary checks are not to be accepted. 4. If a contractor’s employee collects $1,000.00 or more per day in CASH, you may stop and get a money order. If this option is chosen, the receipt for the money order needs to bet turned in at check-in. The contractor will be reimbursed for the cost of the money order and receive $1.00 extra settlement for making the stop. 5. Turn in all monies and C.O.D. tags at check-in. 6. Sign the cash log if cash is collected. 22 Service Offerings and Industry Standards Call Tags Call Tags are used by shippers to recall a package that FedEx Ground or any other carrier has previously delivered. The Call Tag is delivered to the recipient and the package is picked up and returned to the shipper. 1. The Call Tag replaces (and is placed over) any other barcodes and addresses on the box. The Call Tag will be the new shipping label. 2. The top of the Call Tag is a receipt for the recipient and indicates the Tracking ID for the return of the package. Description of a Call Tag CSA (CSA assigned to) Confirmation # (digits) Print Date (original date printed) Reprint # (number of reprints) Scheduled Date (Pickup date) Contents (of package) Customer Receipt Pickup Address Number of call tags in the stop. Tracking ID Indicates Regular or Damage Call Tag Open & close hours (Business only) Pickup instructions 23 Service Offerings and Industry Standards Call Tag Scanner Screen The Call Tag screen on the scanner (sample shown below) appears after the first Call Tag of a stop is scanned and “Delivery” is selected. This screen has four options: • • • • All Call Tags Picked Up: Applies a Status Code 29- “Call tag package pickup” to all Call Tags at the stop. Apply Status Code to All: Brings up a list of available Status Codes to apply to all Call Tags. Handle Call Tags Individually: Allows selection of Status Codes individually for each Call Tag scanned. All Call Tags Delivered: Applied when Call Tag packages (with previously attached Call Tag barcodes) are all delivered to the recipient. What if the customer does not have the package ready at the time of the scheduled pick-up? Status Code 24- “Call tag not ready” can be used. A customer signature is obtained on the Call Tag and on the scanner or Manual Delivery Record. There is a space on the back to write “Status Code 24” and the time of the delivery attempt are written on the back of the Call Tag, and the Call Tag is returned to the station. What if the residential recipient is not home, and has not left the package? Status Code 07- “Residential recipient not in, unable to indirect or driver release” can be used. What if the package cannot be picked up due to shipping restrictions, inadequate packaging, or damage? Status Code 81- “Refused pickup package” can be used. 24 Service Offerings and Industry Standards Indirect Delivery If the recipient is not available to accept delivery of the package, the package can be delivered to, and signed for, by someone other than the recipient at a nearby address. This is called an “indirect delivery.” REMEMBER • • • • The address to which the package was delivered must be recorded in the scanner or if hand-sheeting, on the Manual Delivery Record. The scanner has an Indirect Delivery screen button. Adult Signature Required and Direct Signature Required packages CANNOT be indirect deliveries. The customer’s name should never be signed by someone else. This is a serious integrity issue and is considered a material breach of the Operating Agreement 25 Indirect deliveries should be attempted only if the intended recipient is unavailable to sign for the package. The indirect delivery attempt can take place before attempting to driver release the package to reduce claims liability. Service Offerings and Industry Standards Driver Release Driver Release of Packages Often, the intended recipient is not home or is unavailable to sign for a package. When no one is available to accept the package, the delivery may be attempted again at a later time. As an alternative, packages that are not “Direct Signature Required” may be left in a safe place. This is called a “Driver Release”. Driver Release to a Residence When a package is left at a residence without getting a signature for the delivery, the following should be followed to prevent claims. • • The package is to be released only to homes and private residences with single-family entryways (not to businesses, churches, schools, or apartment buildings or residences with public access or common entryways). • The package is to be released only to the delivery address listed on the package label. • The package is to be released out of public view, in places not susceptible to weather exposure or, if not feasible, securely wrapped in weatherproof bags. The package is to be released only when a Delivery Notice is completed, scanned and left at the primary entrance of the delivery address listed on the package label When completing a Driver Release, the location of the release (i.e., back door, front door, etc.) should be recorded either in the scanner or on the Manual Delivery Record so the customer knows where the package is. A Status Code 14-“Residence Driver Release” can be applied to the delivery. The scanner will automatically apply this code after the driver-release location is selected. 26 Service Offerings and Industry Standards Driver Release Cautions Listed below are deliveries that always require a signature and cannot be Driver Released: • • • • • • High Value Packages - those with a declared value greater than $500.00 Stops with a common entrance such as apartments or condominiums FedEx Home Delivery Appointment Premium Service packages Deliveries in FedEx Home Delivery non-driver release designated areas Special Signature-Required deliveries (i.e., Adult, Direct and Indirect) Hazardous Material packages including consumer commodities (ORM-D) If there is not a good place to Driver Release the package, and it is not possible to Indirect Deliver the package to a neighbor, a Door Tag can be left and another attempt made either later in the day or on the next delivery day. In general, customer complaints and lost packages are more likely to arise when: • Packages are left between the screen door and the front door. • Packages are left where someone could trip over them when leaving his/her home. • Packages are left at a location that is easily visible to a passerby. 27 Service Offerings and Industry Standards Driver Release to a Business Advance authorization for Driver Release to a business location may be provided by the shipper or the recipient. Business Driver Release Authorized by the Recipient The recipient may provide advanced written approval for packages to be delivered to a business location without the recipient’s signature at the time of delivery. This approval is provided by the recipient’s completion of the “Authorization for Release with Customer Signature” form, OP-201. The recipient retains the original, and the bottom copy is filed at the delivery station by zip code. At delivery: • The package is scanned. • When a driver attempts to Driver Release the package, the scanner will prompt if an OP-201 is on file. After the user confirms that the form is on file, the scanner will automatically apply a Status Code 21- “Business driver release” to the package. • The package is left in the customerapproved location. Note: The OP-201, “Authorization for Release with Customer Signature” is void for packages designated as “Signature Required.” Because this service is requested and paid for by the shipper, an actual signature is needed for these packages. ¾ 29 28 Service Offerings and Industry Standards Discontinue Driver Release to a Business If a recipient wants to discontinue the authorization of driver release, the recipient must check the “Shipment Cancellation Notice” box on the OP-201 and mail the form to the local station. The station will attach the cancellation to the previous copy on file to void the Driver Release, and inform the contractor business contact. Authorized Business Driver Release by the Shipper A shipper who wishes to authorize a Driver Release to a business must enroll in advance. Upon enrollment: • Shipper authorizes packages to be delivered on the first attempt, including Driver Releasing to a business. • Shipper waives right to file Driver Release related claims. • If a package from an enrolled shipper is scanned with a Status Code 4 or 7, after “Close Stop,” the screen below will appear. o Tap “Edit Status” to remove Status Codes 4 or 7 and Driver Release the package. • An OP-201 is not needed to Driver Release these packages. 29 Service Offerings and Industry Standards Door Tags/Delivery Notices Door Tags or Delivery Notices provide customers with necessary delivery location and tracking ID information. Being able to view this information is part of what customers are paying for when they ship through FedEx Ground. In addition, when a delivery is unsuccessful, notice Door Tag can provide specific information required to ensure successful future attempts. Leaving a Delivery Notice is a good method of reducing potential claims. For example, a recipient who does not realize his/her package was Driver Released to the side door may file a claim. An example of a FedEx Ground Delivery Door Tag and Delivery Notice are shown below. Use when unable to pick up a package or package cannot be Driver Released Use for an Indirect Delivery or when a package is Driver Released 30 Service Offerings and Industry Standards Door Tags are used for different reasons, which are listed below: 1. If a package has a C.O.D. amount due on delivery, it lets the recipient know the amount to have ready for the next delivery attempt. 2. The door tag alerts the recipient that a delivery attempt has been made but was unsuccessful due to a signature requirement. • In this case, the box labeled “Shipper requires signature in person at this address upon delivery” or “Shipper requires signature from adult (over 21) at this address” are checked. The bottom portion of the door tag is removed at the perforation. 3. It lets the recipient know that a delivery was attempted and that another attempt will be made the next business day if it was not the final attempt. 4. The recipient may sign the bottom of the door tag indicating approval to driver release the package (This does not apply to packages with Signature required services). • When a recipient signs a door tag, the signature should be peeled off from the door tag and placed on the Signature Release Card. The signature card process on the scanner should be followed. 5. It lets the recipient know that an attempt to pick up a Call Tag was made. 6. When a Call-in Pickup is unsuccessful, it lets the shipper know an attempt was made. 7. It provides the recipient with a toll free number so they may contact Customer Service to give special delivery instructions. Delivery Notices are used in the following situations: 1. When a package is Driver Released a Delivery Notice directs the recipient to the exact location of the package even if it was to the front door. A small package can be easily overlooked. 2. If a package is delivered via Indirect Delivery, it lets the recipient know where the package has been delivered. It is important that the Door Tag is scanned and the form is properly completed noting the number of attempt(s), date, location, and Tracking ID. Recipients may call Customer Service and provide the needed delivery information such as an alternate delivery address or even refuse a package over the phone. When this type of information is provided by the customer through the use of a Door Tag, Customer Service is able to assist the customer. However, if a door tag is not filled out completely, the recipient will not be able to give the required information to Customer Service, such as the Tracking ID. 31 Service Offerings and Industry Standards Signature Release Card The Signature Release Card can be used for two different purposes: Collecting a Door Tag Signature The recipient may sign the bottom of the Door Tag indicating approval to Driver Release the package. If the recipient has signed the Door Tag, the package can be released to a safe location (provided the package is not part of a “Direct or Adult” Signature Required Service). The signed signature sticker is removed from the Door Tag and applied to the Signature Release Card (OP-206). Collecting a Manual Signature If a customer refuses to sign on digital devices, or a scanner digitizer failure occurs, the recipient may sign the Signature Release Card. In either case the process below applies: 1. The barcode on the card is scanned to electronically connect it to the delivery stop. 2. The recipient’s name is entered into the scanner. However, the driver should not sign the customer’s name for him/her (even with the customer’s permission.) 3. The Door Tag signature peel-off is placed on the card or the customer should sign on the corresponding line of the card. Note: A signed Signature Release Card is used for one date only. If multiple dates are collected on the same card, the signature information will be inaccessible to the customer. 32 Service Offerings and Industry Standards Shipment Release Authorization The Shipment Release Authorization facilitates first-attempt deliveries for packages with the “Indirect Signature Required” Service (explained in the next section) whose recipients are not available at the time of delivery. This may be utilized for residential deliveries. Recipients will be given a web link from their shipper when they receive confirmation of shipment. If they follow the web link, recipients have the option to print a “Shipment Release Authorization” form to sign and affix to their front door on the expected day of delivery. To be valid, a “Shipment Release Authorization” must be signed properly. It applies only if the Tracking ID and recipient address on the form match what is on the package. Each form authorizes the release of a specific package tracking ID only, not the entire stop. If the recipient requests that the package be left at the original address, the package can be left at the location requested by the customer (front door, etc.). If the recipient requests that the package be delivered to a neighbor, the package can be delivered directly to that neighbor in accordance with the request. An in-person signature should be obtained from that neighbor. 33 Service Offerings and Industry Standards The “Shipment Release Authorization” is very similar to a signed door tag. • At the signature screen on the STAR scanner, the Signature Card button is selected, followed by scanning the bar code on the applicable “Signature Release Card” OP206. • A prompt on the scanner will ask for the first initial and last name of the recipient. • • Since there will be no signature in the signature box on the “Signature Release Card”, this fact should be indicated, e.g., note that the signature is “On File.” The form and “Signature Release Card” is returned to the station during Driver Data Collection. The package need not be left if conditions suggest that there is inadequate security at the location. 34 Service Offerings and Industry Standards Signature Services FedEx Delivery Signature Options provide multiple levels of signature-required service to meet the varying needs of our shippers including restricted goods, shipments containing alcohol, tobacco, high-value goods, and/or pharmaceuticals. If a shipper requests and pays for a Signature Service, then that service is what they expect and must receive, even if it means that a package is returned to the station for additional attempts at delivery. Signature services include: Indirect Signature Required • Indirect Signature Required service offers the flexibility of capturing a signature via a door tag, neighboring address, apartment or management office. This service is available for residential deliveries. Direct Signature Required • Direct Signature Required service requires a signature from any individual at the delivery address, and is available for both commercial and residential deliveries. • Indirect delivery and signed door tags are not acceptable for delivery of Direct Signature service packages. Adult Signature Required • Adult Signature Required service requires a signature from any individual 21 years of age or older at the delivery address. Government-issued photo identification is required. This service is available for both commercial and residential deliveries. The delivery scanner will display a born on or before date. Each recipient must be at least 21 years of age. • Indirect delivery and signed door tags cannot be accepted for delivery of Adult Signature Service packages. Note: Failure to comply with signature required service procedures may result in termination of an operating agreement. • • • Forging (i.e. signing or handwriting) a recipient's name as proof of delivery; Failing to obtain a valid adult signature on appropriate packages (i.e. alcohol, tobacco, firearms, pharmaceuticals, etc.) Falsification of Company and/or D.O.T. documents. 35 Service Offerings and Industry Standards Alcohol Shipment The Special Delivery Instructions label should be applied by the shipper to all shipments containing alcohol. Special instructions associated with deliveries that contain alcohol are listed on the label and are outlined below: • • • Must be delivered to address on label.* Must obtain an in-person signature by someone 21 or older (ID required.) No Indirect Delivery, No Driver Release and No Release with Door Tag Signature. *Note: Shipper or recipient may request delivery to alternate delivery address by contacting customer service. 36 Service Offerings and Industry Standards Signature Service Quick Reference Guide Indirect Direct Alcohol (DSR/ASR) Adult Delivery to Alternate Delivery Address* Yes1 Yes1 Yes2 No Indirect Delivery with Signature Yes No3 No3 No3 Door Tag Release Yes No No No Driver Release with Signed OP-201 on File No No No No Shipment Release Authorization Yes No No No 1. Shipper may at any time request delivery to Alternate Delivery Address for ISR and DSR. Recipient may request if there has been a delivery attempt or post card has been sent. 2. Shipper may request Delivery to an alternate delivery address for Alcohol packages if the package is properly labeled as Alcohol (with SEL-169, SEL-13, or SEL-154 labels). Recipient may request if there has been a delivery attempt or post card has been sent. New address may NOT cross state lines. Adult signature is still required. 3. If a building allows deliveries to individual apartments, a delivery should be attempted at the apartment. If no one is home, the package may be left at the central receiving area, provided someone is there to sign for the package. Per the Operating Agreement, “Residential Driver Release Program”, a Delivery Notice, OP-193 is left on the apartment door to advise the recipient of the delivery. If the package is Adult Signature required, the person signing must be 21 or over. Shipments to hotels, hospitals, government offices or installations, university campuses, apartments, gated communities or other facilities that utilize a mailroom or other central receiving area may be delivered to the central receiving area. The person signing for an Adult Signature Required package must be 21 or over. 37 Service Offerings and Industry Standards FedEx Home Delivery Premium Services Premium services are guaranteed services offered to FedEx Home Delivery shippers for an additional charge. Appointment • • • Recipient has requested that a package be delivered at a specific time. Deliver the stop within one hour of the scheduled appointment. Must have a signature at delivery and never driver released or indirect deliver. Evening • • Deliver between 5:00 p.m. and 8:00 p.m. Allowed to driver release. Date Certain • • Deliver on the exact day it is due. Do not deliver early or late. Allowed to driver release. 38 Service Offerings and Industry Standards Sortation Assist Cover Label Occasionally, a customer’s internal bar code interferes with our ability to scan or sort packages in our hubs and stations. The Sortation Assist Cover Label can be used to cover the problem bar code without defacing the customer's label. The label can be placed directly over the customer's bar code so that the overhead scanners will not attempt to decode it. The label is made with a light adhesive which makes it easy to peel off of the shipping label at delivery. 3 The adhesive is strong enough to keep the cover label on, but sensitive enough to not affect the customer's bar code when it is removed. At the time of delivery, the cover label should be removed from the package. 39 Service Offerings and Industry Standards Service Cross All packages and Call Tags that cannot be delivered by the contractor’s employees are marked to indicate date, time, van number, and the reason the package was not delivered. This is known as a “Service Cross” and it should be placed near the address label. Call Tag labels have the service cross preprinted on the back of the label. Otherwise, a service cross can be made on a package by drawing two perpendicular lines approximately two inches in length. Be sure to write clearly so information can be read accurately. The following is an example of a service cross: Status Code 04 07/05/05 Date FedEx Ground Status Codes Time 11:05 91198 Van# FedEx Home Delivery Status Codes 40 Service Offerings and Industry Standards Consecutive Unsuccessful Delivery Attempts • Each consecutive unsuccessful delivery attempt can be recorded on the same service cross. • The contractor should note the first attempt at the top of each square. • The second attempt should be noted beneath the first. The following is an example of a second delivery attempt service cross: Status Code Dates of attempts 04 04 7/5/05 7/6/05 11:05 13:40 91198 91198 Times of the attempt Contractor’s vehicle number Package Refused by Recipient If a package is refused, the name of the person refusing the package and the reason for refusal can be printed in the upper left-hand square of the service cross with the status code. The following is an example of a service cross where the recipient refused the package. 1. Status Code 2. Name of person refusing the package 3. Reason for refusal 41 Service Offerings and Industry Standards Use of Electronic Tracking Equipment FedEx Ground and FedEx Home Delivery scanners are easy to use hand-held PCs, specifically designed for contractors. Simply point the scanner at the bar code, press a key, and information is instantly captured. Features include: • • • Electronic address database. Electronic signature capture. Faster, more accurate proof-of-deliveries. • Contractor Authorized Officers or Business Contacts should contact a FedEx Ground Manager to receive the Scanner Workbook for Ground or Home Delivery to learn additional details about how to utilize the applicable scanner when making pickups or deliveries. 42 Service Offerings and Industry Standards Business Misdeliveries Business Misdeliveries As FedEx Ground’s customer base grows, so do the number of businesses with names that sound alike. That is especially true with retail merchants in malls and/or shopping plazas. Bigger retailers often have smaller specialty stores that go by the same or a similar name. In most cases, misdelivered merchandise is not interchangeable. Misdeliveries can cause inventory, claims, and invoicing issues for the shipper and FedEx Ground alike. Making sure packages get to the right retail recipient can even be more challenging, as many recipients often receive their merchandise from the same distribution center. It is the Independent Contractors’ contractual responsibility to ensure that business misdeliveries do not occur, to train its employees, and to choose the most appropriate means to achieve the contracted-for results. 43 Service Offerings and Industry Standards Residential Misdeliveries In FedEx Ground’s experience, there are three common ways that misdeliveries occur at residential deliveries: 1. The address is not verified. 2. There is no number on the house/apartment. 3. The package is delivered to the correct house number, but on the wrong street. This occurs most often on similarly named street addresses, such as: • • • Bayview Avenue versus East Bayview Avenue Mill Road versus Old Mill Road Perks Boulevard versus Perks Court Understanding these common mistakes may help prevent misdeliveries and customer complaints. 44 The Operating Agreement The Operating Agreement As a duly licensed motor carrier engaged in providing small package transportation and delivery services, FedEx Ground provides pick-up and delivery services through a network of independent contractors. Each independent contractor executes an Operating Agreement which sets forth the mutual business objectives of both the contractor and FedEx Ground. The Operating Agreement is a legally enforceable contract which summarizes the rights and obligations of both the contractor and FedEx Ground. Many of the provisions of the Operating Agreement are based on requirements which are mandated by the United States Department of Transportation (“D.O.T.”) and its corresponding regulations. . Background Statement Key points Contractor commits to provide daily pick-up and delivery service and conduct business that can be identified as being part of the FedEx Ground system. Contractor provides services strictly as an independent contractor. Contractor has sole discretion of manner and means of reaching the results no officer or employee of FedEx Ground has the authority to impose any term or condition on the contractor or on the contractor’s continued operation which is contrary to this understanding. Equipment and Operations 1. Power Equipment Key points • Provide transportation services. • Utilize the vehicle equipment identified per most recent Addendum 1. • Certify that equipment meets applicable federal, state and municipal laws/regulations. • Selection of the equipment is at the contractor’s discretion. 45 The Operating Agreement 2. Equipment Maintenance Key points • Responsible for maintenance of equipment. • Agree to remove equipment from service when deficiencies are identified. • Provide suitable equipment to meet obligation until deficiencies are repaired. • Provide proof of timely maintenance and inspection, (per D.O.T. requirements.) specifically through the use of the Monthly Maintenance Record, OP-108, handed in by the end of the month. 3. Operating Expenses Key points • Bear all cost and expenses incidental to the operation of the equipment. • Agree to have charges paid by FedEx Ground on behalf of the contractor deducted from settlement. 4. Operation of the Equipment Key points • Direct the operation of the equipment. • Determine methods, manner, and means for performing contractual obligations. • While in the service of FedEx Ground, use the vehicle for no other purpose. • FedEx Ground not accountable for liabilities while contractor is operating vehicle for separate business activities. 5. Equipment Identification while in FedEx Ground’s Service Key points • Mark equipment as part of the FedEx Ground system while in service. • This includes standard logo placement devoid of any other extraneous insignias or markings. • Remove or mask all identifying insignia and logos when used for personal or other commercial use. 6. Licensing Key points • Base plate requirements. • Obtain an owner/driver operating authority to serve intrastate customers, if necessary. 46 The Operating Agreement 7. Logs and Reports Key points • Prepare daily driver logs, daily inspection reports, fuel receipts, and other documents as required by law or regulation. • File the originals with FedEx Ground at the conclusion of each business day. 8. Shipping Documents and Collections Key points • Prepare and present shipping documents for signature at the end of the business day. • Collect any charges owed and return same to FedEx Ground at the end of each business day. 9. Contractor Performance Escrow Account Key point • Deposit appropriate escrow amount. 10. Agreed Standard of Service Key points • Standard of service. • Provide daily pick-up and delivery service, on days and at times which are compatible with the schedules and/or requirements of shippers/recipients, within the Primary Service Area. • Make reasonable efforts to retain and increase shippers and recipient base. • Handle packages using methods designed to avoid theft, loss, and damage. • Cooperate with FedEx Ground employees, customers, and other contractors to achieve efficient pick-up, delivery, handling, loading and unloading of packages. • Provide necessary electronic and/or manual data pertaining to package handling. • Foster the professional image and good reputation of FedEx Ground and yourself. • Adhere to vehicle identification and operating appearance standards. • Conform to all applicable federal, state and local laws, regulations and ordinances. • Operate equipment safely, and in compliance with all applicable laws and regulations. • Conduct all business activities with integrity and honesty, in a professional manner, and with proper decorum at all times. 47 The Operating Agreement 11. Refused or Returned Shipments Key points • Return all packages that cannot be delivered on the day tendered upon return to the Station. • Scan and service cross all returned packages. 12. Operator and Equipment Appearance Standard Key points • Wear approved uniform to permit recognition and prompt access to customers’ places of business. • Keep personal appearance consistent with reasonable standards. • Maintain equipment clean and damage free. 13. Communications Equipment Key point • Purchase or lease communication equipment necessary to fulfill obligations (i.e.: scanner.) 14. Contractor’s Obligation to Meet Standard of Customer Service Key points • Ensure fully trained equipment operators meet customer service standards. • Allow up to four company-initiated Customer Service Rides per year. 15. Discretion of Contractor to Determine Method and Means of Meeting Business Objectives Key point • Exercise independent discretion and judgment to achieve business results. 48 The Operating Agreement B. Vehicle Operation 1. Additional Vehicles; Safe Operation Required Key points • May operate additional equipment with FedEx Ground’s approval. • Any driver of additional equipment must be qualified. 2. Employment of Qualified Persons Key points • Employ qualified personnel. • Costs associated with training and employment of additional personnel, are the contractor’s responsibility, as are benefits and/or insurance. • Contractor has the responsibility to hire, fire, and manage/supervise their employees. C. Insurance and Indemnities 1. Non-Trucking Liability Coverage—Contractor Responsibility Key point • Maintain insurance coverage according to Addendum 2. 2. Public Liability—FedEx Ground’s Responsibility Key points • FedEx Ground is responsible for maintaining insurance coverage for public liability (general and automobile/truckers personal injury and property damage insurance coverage), and cargo loss and damage risks. • FedEx Ground will indemnify Contractor/Contractor’s drivers when packages are on board. • Operate equipment safely. 3. Public Liability—Contractor’s Responsibility Key points • Ensure safe/legal operation of equipment. • In the event of indemnity termination notification, purchase a policy for public liability. • In the event of indemnity termination notification, provide FedEx Ground a certificate of insurance naming FedEx Ground as additionally insured. 49 The Operating Agreement 4. FedEx Ground’s Non-Liability for Equipment Key point • Unless loss or damage is caused by FedEx Ground, its agents and/or employees, FedEx Ground has no liability for the equipment. 5. Contractor’s Responsibility for Certain Losses Key points • Contractor is responsible for the first $1,000 for all claims involving bodily injury and/or property damage, and also cargo claims. • After each at-fault-accident-free year, Contractor’s responsibility decreases by amounts designated in the applicable Operating Agreement. 6. Work Accident and Workers’ Compensation Key points • Obtain and maintain work accident and/or workers compensation. • Provide FXG 30 days’ written notice of cancellation or material change of coverage. 7. Minimum Insurance Qualifications Key Points • Insurance shall be provided by a qualified provider. • Coverage will be obtained in the state(s) where the equipment is operated. 8. Coverage Facilitated by FedEx Ground Key point May choose to have FedEx Ground facilitate required or optional insurance on the contractor’s behalf and deduct the cost from the contractor’s settlement. • 9. Other Insurance • Obtain any desired insurance in addition to that required by the OA for life, health, or other needs. 50 The Operating Agreement D. Settlement with Contractor 1. Settlement for Services Performed Key points • Provide service under the agreement. • Provide equipment to tender packages. • Cooperate with FXG to increase package volume and customer density in PSA to extent TCZDS is reduced or eliminated. • Sections 4.1 d and 4.1 e are not included in the FHD Operating Agreement. 2. Settlement Statements Key points • Deduct all wages, taxes and charges, etc. for themselves and their employees. • Provide written request within 30 days for all settlement discrepancies. • Prepare settlement documents and records necessary to compute settlement. E. Contractor Primary Service Area 1. Definition Key point • Contractor is responsible for daily pickup and delivery of packages in contractor’s primary service area. 2. Mutual Intention to Reduce Geographic Size of Primary Service Area Key points • Acknowledge that increasing the package and stop density of the service area is beneficial. • Allow FXG to complete, for the purpose of evaluating the contractor’s PSA, up to four company-initiated rides per year. 3. Recognition of Contractor’s Proprietary Interest in Customers Served Key points • Contractors have a proprietary interest in the customer accounts in their PSA. • Operating an efficient package delivery system which is fully competitive. • Agrees to work as a participant in a contractor network. • Make payments to other contractor(s) for reassigned FXG deliveries and pick-ups that FXG reassigned. • Make payments calculated to relinquishing contractor. • Allow credits and deductions from weekly settlement. 51 The Operating Agreement F. Contractor Customer Service (CCS) Payments Key Point • Meet individual customer service and safety goals. G. Business Support Package Key points • Decide if BSP is wanted initially. • Elect to continue or discontinue annually. • Elect to purchase BSP items separately. H. Service Guarantee Program Key points • Recognize that unexpected financial need can arise, including the need for emergency maintenance on the vehicle or the need for a substitute driver. • Encouraged to accumulate money in an interest-bearing account. • Have the option to take out a loan based on credit history and the amount of money in the account. • Repay loan within one year at an interest rate comparable to a 13-week Treasury Bill. • Withdraw any and all monies from the account at his/her discretion. I. Flex Program (Only applicable to FXG) Key points • Elect or decline to participate in the Flex program. If participating, agree to accept packages and stops from outside Primary Service Area up to daily pickup and delivery capacity. • Receive a daily fee designated per Addendum 3 if participating, regardless of whether or not he/she takes a flex, for each vehicle that is eligible for Van Availability each day; think of it as being on retainer. J. Term of Agreement • • Initial Term. Renewal Term. 52 The Operating Agreement K. Termination Provisions 1. Termination • • Key points Terminate by mutual agreement, breaches, and or failure to perform. Terminate with 30 days’ written notice prior to renewal. 2. Obligations upon Termination Key points • Return FXG/FHD packages, documentation and all BSP property. • Remove, cover, or return equipment decals. 3. Arbitration of Asserted Wrongful Termination Key points • Provide a written request to the American Arbitration Association (AAA) within 90 days of termination. L. Merger of Understanding The Operating Agreement cannot be modified, altered, changed or amended in any respect unless in writing and signed by both parties. M. Force Majeure The performance of the obligations of this Agreement on the part of either FedEx Ground or the Contractor shall be excused by reason of closing of public highways, changes in customer shipping and/or receiving requirements, strikes or work stoppages, weather conditions which make operations unsafe or impractical, Acts of God, or temporary or permanent cessation of business by FedEx Ground within the Station Service Area. N. Assignment Key points • If in good standing, the contractor may assign the rights and obligations in its Primary Service Area to an acceptable replacement Contractor within 30 days. • Upon death or disability, same terms apply. 53 The Operating Agreement O. Governing Law • This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Signature Page Key points • Signature Page clause. • Read, understand, and sign. • Provide witness. • 47 Addenda Station senior manager will provide the most recent addenda, and review each addendum, and attachment. 54 Settlement Settlement Settlement Record After completing the pickup and delivery day, the contractor verifies the P&D Settlement Record. The P&D Settlement Record is a summary of the day’s P&D activity and includes: • • • • • • • • • • • • Contractor and vehicle information The number of packages picked up and delivered The number of stops made The core zone(s) in which the contractor worked Non-delivered package status Pickup Reconciliation (shipper information, pickup times, etc.) C.O.D. activity Collect stop statistics Call tag information D.O.T. hours of service Vehicle mileage information Driver's Vehicle Inspection Report This paperwork is system generated after the driver completes his/her final stop routine and turns in the scanner at check-in. When this paperwork cannot be system generated, such as when a driver has used a Manual Delivery Record for example, there is a manual alternative. Note: See the local P&D manager or service manager for greater detail of the P&D Settlement Record. They will assist you with this paperwork after your first delivery day. A. Settlement Record Completion Settlement is determined by the payment schedule defined in each Operating Agreement. Settlement is made on a weekly basis. The Settlement Record is a detailed record of the services the contractor provided for the day. The Settlement Report is the determination of payment. • A FedEx Ground manager will explain the P&D Settlement record in greater detail, using the handout which appears on the following pages. 55 Settlement FedEx Ground Settlement Record 1. 2. 3. 4. 5. 6. 7. Settlement Statement Overview Contractor Name, Address, District, Station and Vehicle Type. • Contractor should verify information is correct. Date of settlement activity. Core Zone. • A specific geographic zone in a station’s service area. A Core Zone is used to schedule pickup and delivery services for a specific work area. Core Zone amount paid. • Calculation is rate x core zone stops/total stops for the day. Van availability. • Per Addendum 3 of the Operating Agreement, settlement is paid for each business day that contractor makes a van or straight truck and a qualified driver available and provides services under the agreement. Pick-up packages (total) by core zone Pick-up payment. • Per Addendum 3 of the Operating Agreement settlement is calculated using the following formula and rates as outlined in the addendum: Pick-up package amount x number of packages Example: Type: Tractor Trailer: $x.xx per stop Straight Truck: $x.xx per stop Van: $x.xx per stop Van: Straight Truck: Tractor-Trailer: 1st - 50th package per stop $x.xx $x.xx $x.xx 51st - 100th package per stop $0.180 $0.160 $0.130 101st - 200th package per stop $0.148 $0.050 $0.050 201st - 300th package per stop $0.136 $0.050 $0.050 301st - 400th package per stop $0.124 $0.050 $0.050 401st - 500th package per stop $0.112 $0.050 $0.050 501st - 99999th package per stop $0.100 $0.050 $0.050 8. 9. Pick-up stops (total) by core zone. Pick-up stop payment. • Per Addendum 3 of the Operating Agreement settlement is calculated using the following formula and rates as outlined in the addendum: Pick-up stop amount x number of stops Example: Vehicle Type: Tractor Trailer: $x.00 per stop Straight Truck: $x.00 per stop Van: $x.00 per stop 10. 11. Delivery Packages by core zone. Delivery package payment. • Per Addendum 3 of the Operating Agreement. (Delivered package amount x number of packages) 56 Settlement 12. 13. Settlement Statement Overview Delivery stops by core zone. • Total number of delivery stops in a specific core zone. Delivery stop payment. • Per Addendum 3 of the Operating Agreement settlement is calculated using the following formula and rates as outlined in the addendum: Delivered stop amount x number of packages Example: Vehicle Type: Van: $X.xx per stop, $0.xx per package delivered Straight Truck: $X.xx per stop, $0.xx per package delivered Tractor Trailer: $X.xx per stop, $0.xx per package delivered 14. 15. Spotted trailer and/or shuttle payments. • Per spotted trailer/shuttle Attachment 3.1 and 3.2 to Addendum 3 Excessive mileage payment. • Per Addendum 3 of the Operating Agreement settlement is calculated using the following formula and rates as outlined in the addendum: Excessive mileage rate x miles exceeding cap Example: Daily Mileage Settlement -- For each mile driven daily in excess of 200 miles the following settlement will be paid: 201 - 250 Miles $0.3200 per mile 251 - 300 Miles $0.3850 per mile 301 Plus Miles $0.4400 per mile Does not apply to shuttle vehicles, supplemental vehicles, straight trucks, or tractors. 16. & 17. 18. 19. 20. 21. Dock inbound and outbound. • Per Addendum 3 of the Operating Agreement settlement is calculated using the rates as outlined in the addendum. C.O.D. amount. • Per Addendum 3, C.O.D.’s (Collect on delivery) are a service offered to shippers at an extra charge. The shipper authorizes the carrier to collect a designated dollar amount from the recipient upon delivery. The monies collected are turned in during check-in and then forwarded to the shipper. Call Tag. • Per Addendum 3, a service provided at an extra charge, in which a shipper requests that a previously delivered package be picked up from the recipient and returned to the shipper. FedEx Ground CALL TAGS resemble bar codes and are electronically transmitted to the station that delivered the package. CALL TAG service is not available for hazardous material packages. Daily Gross Amount by core zone. Daily Totals. • Total amount paid for settlement activity date. 57 Settlement 22. 23. 24. 25. 26. 27. 28. 29. Settlement Statement Overview Unadjusted gross amount. • This is the total dollar amount for all activity for the dates shown on the statement, before any adjustments or deductions are applied. • Total of all daily settlement for the week. Adjustments to the weekly settlement. • Adjustments are items that may either increase or decrease settlement, based on the nature of the adjustment. • Examples of items that impact 1099 earnings: all extra settlement and bonus program payments, matching service guarantee, etc. Includes any item that affects earnings. • Examples of items that do not impact 1099 earnings: vehicle rentals, fuel from vehicle rental, service guarantee withdrawal. Any item that does not affect earnings will not impact the amount reported on the 1099. • Adjustment examples to include: Minimum pick up, Flex Program, Business Support Package, Service Account Withdrawal, Oversize. Total Gross Earnings. • Unadjusted gross net adjustments. Deductions. • Examples to include: Escrow Account, Physical Damage/Non Trucking Insurance, Work Accident Insurance, Service Account, Cargo. Net Pay. • Actual amount of settlement check. (Total gross net deductions) Escrow Account. • As set forth in Section 1.9 of the Operating Agreement, each contractor agrees to deposit money with FedEx Ground in an escrow account. • This provides an accounting of credits to and/or subtractions from this account. Service Account • As set forth in Section 8 of the Operating Agreement, FedEx Ground agrees to maintain an interest bearing fund known as the “Service Guarantee Account.” • This account may be used to meet the expenses of maintenance and/or the cost of a substitute operator when the Contractor is ill or does not wish to drive. • HR-10 No longer Available 58 Settlement 30. 31. 32. 33. 34. 35. Settlement Statement Overview Performance Settlement. • As set forth in Section 4.1(e) of the FedEx Ground Operating Agreement, after the Contractor has completed one year of service, he/she will be entitled to a quarterly performance settlement equal to the percentage specified in Addendum 3. • This settlement can be dispersed to the Contractor’s Service Account, or paid in cash as an adjustment, at the Contractor’s election. Maintenance Loan. • FedEx Ground may, at its discretion and taking into account the credit history of the Contractor, make a loan to the contractor to fund maintenance costs in excess of the balance in the Contractor’s Service Guarantee Account. • As discussed in Section 8 of the FedEx Ground Operating Agreement, these loans will be collected via a settlement adjustment, with interest accruing on a weekly basis. Loan Amount. • Money in this column is placed there by a negative statement. • In the case of a negative statement, the money will be collected the next week. Year-to-Date Earnings. • The beginning balance will be zero on the start of the earning for the new calendar year. New Activity. • This amount is the total gross (#24) plus or minus any adjustments or deductions that affect earnings Current Balance. • This amount is the new year-to-date earnings – 1099 earnings. • 1099 reportable income is defined as a total gross net of any adjustments or deductions that affect earnings 59 Settlement 60 Settlement 61 Settlement FedEx Home Delivery Settlement Record After completing the Delivery day, the Independent Contractor’s employee verifies the Settlement Record. This paperwork is system generated after the driver completes their final stop routine, performs an upload, and turns in the scanner at check-in. At check-in, the Independent Contractor’s employee provides the manager with mileage information if applicable. When this paperwork cannot be system generated, such as when an Independent Contractor’s employee has used a Manual Delivery Record, there is a manual alternative. Note: See the P&D Manager or Service Manager at the station where you are domiciled for additional information and/or questions regarding the P&D Settlement Record. 62 Settlement FedEx Home Delivery System Generated Settlement Record 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Settlement Statement Overview Contractor Name, Address, Vehicle Number, Social Security Number, Station and District. • Contractor should verify information is correct. Date of Settlement activity. Core Zone number. Core Zone amount – settlement is calculated using the formula below and the rates as outlines in the Operating Agreement. Total stop within the core zone x core zone rate = multiplier = multiplier/total of all multipliers x core zone rate = Core Zone amount. Van availability payment. • Per Addendum 3 of the Operating Agreement, settlement is paid for each business day that contractor makes a van and qualified driver available and provides services as outlined under the agreement. Delivered packages per core zone. • Total number of packages that were delivered in a specific core zone on settlement activity date. Delivered package amount. • packages x rate per addendum 3 of Operating Agreement. Delivery Stops. • Total number of stops that were delivered on specified date. Delivery Stop amount – settlement is calculated using the formula below and the rates as outlines in the Operating Agreement, Addendum 3. Stop x rate Gross amount per core zone. • Total amount paid for settlement for a specific core zone on settlement activity date. Gross amount totaled by day. • Total amount paid for settlement activity date. Unadjusted gross. • Total of all daily settlement for the week. Adjustments to the settlement. • Examples include: Vehicle use, Package Loading, Mileage settlement, and Service Account withdrawals. 63 Settlement 14. 15. 16. 17. 18. 19. 20. 21. 22. Settlement Statement Overview Total Gross Earnings. • Unadjusted gross net adjustments. Deductions. • Examples: Escrow Account, Physical damage/non-trucking insurance, work accident insurance, service account, cargo claims, insurance claim. Net Pay. • Actual amount of settlement check (total gross net deductions.) • Escrow Account. • As set forth in Section 1.9 of the Operating Agreement, each contractor agrees to deposit money with FedEx Ground in an escrow account. • This provides an accounting of credits to and/or subtractions from this account. • Service Account. • As set forth in Section 5 of the Operating Agreement, FedEx Ground agrees to maintain an interest bearing fund known as the “Service Guarantee Account.” • This account may be used to meet the expenses of maintenance and/or the cost of a substitute operator when the Contractor is ill or does not wish to drive. Loan Account. • Money in this column is placed there by a negative. • In the case of a negative statement, the money will be collected the next week. Accident Claim. • Amount in this column was deducted through #15. • Will be a running balance. Cargo Claim. • Amount in this column was deducted through #15. • Will be a running balance. Year-to-date Earnings. • The beginning balance will be zero on the start of the earnings for the new calendar year. • The ending current balance for prior week statement is the beginning balance (year to date) for the current week statement. 64 Settlement 23. 24. Settlement Statement Overview New Activity. • This amount is the total gross (#14) plus or minus adjustments or deductions that affect earnings. Current balance. • This amount is the new year-to-date earnings which are 1099 reportable. 65 Settlement 66 Settlement 67 Safety and Security Safety and Security At FedEx Ground, safety is the highest priority. As a motor carrier, FedEx Ground is required to share the O.S.H.A. and D.O.T. topics documented in the Safety Information Guide. The contracted entity is responsible for ensuring that its employees are knowledgeable of all applicable safety regulations. FedEx Ground is required to provide documented proof that the Safety Information Guide has been shared with the contractors’ employees who will be granted access to FedEx Ground stations and/or be present in vehicles displaying the FedEx Ground motor carrier certificated number. The “Safety Information Guide” publication will be distributed to Independent Service Providers, Independent Contractors, Vendors, and Temporary Drivers (FedEx Ground Publication, TM-920P). This important safety information must be reviewed and electronically/digitally signed by all personnel for the groups identified above. No person will be issued a FedEx Ground badge until this signed acknowledgement is provided to FedEx Ground. In accordance with the Federal Motor Carrier Safety Regulations (F.M.C.S. R.) part 390.3(e) (2), FedEx Ground will provide copies of the F.M.C.S.R. (version may vary) to the Contractors’ Business Contact, who may subsequently distribute it to all of the contractors’ employees. Additionally, the contracted entity is required to ensure its employees are knowledgeable and comply with all local, state, and federal regulations. Unsafe acts of any kind, committed by contractors’ employees are prohibited and may result in government-imposed fines and/or penalties. Safety Controlled Substance Testing (Drug and Alcohol) FedEx Ground recognized and complies with all controlled substance testing processes as prescribe in the Federal Motor Carrier Safety Regulations, including; • • • Driver Pre-Qualification Testing. Random Driver TestingObserved Behavior/Reasonable Suspicion Testing mandated/directed by any D.O.T. agent and/or other law enforcement agency. Post Accident Testing Hours of Service The D.O. T. has established regulations that restrict the number of hours that a driver is permitted to operate a vehicle. All drivers operating commercial motor vehicles must comply with Hours of Service regulations issued by the Federal Motor Carrier Safety Administration. 68 Safety and Security These rules are designed to help improve highway safety and reduce the number of commercial vehicle accidents. The regulations also address driver fatigue by ensuring drivers have an opportunity to obtain necessary rest and sleep. Each contracted entity shall be responsible for ensuring its employee drivers are aware of and comply with F.M.C. S. R. Part 395 – Hours of Service of Drivers. The contracted entity is required to ensure its employee drivers do not violate the Hours of Service rules. Any violations will be recorded in compliance with the Part 395. The contracted entity is responsible for any fines and/or penalties associated with any violated of Part 395. Accident and Injury Reporting Instructions As stated in the P&D Operating Agreement, contracted entities must report all incidents or accidents involving their employees that result in property damage or personal injury immediately to FedEx Ground. Motor Vehicle Accidents and Associated Injuries All motor vehicle accidents, even if no injuries are involved, must be reported immediately to FedEx Ground. FedEx Ground will provide an accident packet for use by any person operating or in a vehicle displaying the FedEx Ground motor carrier certificate. If contractors employee is not engaged in activities prescribed in the P&D Operating Agreement with FedEx Ground, but is operating a vehicle displaying the FedEx Ground motor carrier certificate at the time of the accident/injury, the accidents/injury events must be reported. Non-Vehicular Injuries (Accidents) The injury (accident) reporting requirements are the same for vehicular or non-vehicular accidents/injuries. They must be reported immediately to FedEx Ground. This includes accidents/injuries whether they occur on FedEx Ground property or elsewhere. Accidents/Injuries General Information Depending on the circumstances, if the contractors’ employee is involved in an accident is not on FedEx Ground property, not engaged in services prescribed in the P&D Operating Agreement, and is not operating a vehicle displaying the FedEx Ground motor carrier certificate, then there might not be a reporting requirement. 69 Safety and Security A contracted entity may not display the FedEx Ground motor carrier certificate on any vehicle while engage in business unrelated to the P&D Operating Agreement. Workers Compensation If an injury requires medical treatment, the Contractor Business Contact should contact the Workers’ Compensation carrier that the contracted entity has contracted with the report the claim. Dock Safety Information FedEx Ground stations are equipped with various types of material handling systems such as, conveyers, carts, trailers, and dock equipment. As such, it is important that the Contractor Business Contact ensures that each of their employees who work around this equipment understand how to do so in a safe manner. Please review this important safety information contained in the “Safety Information Guide”. Injury prevention is a part of the safety priority at FedEx Ground. Hazardous Materials Information/Hazardous Communications Right to Know Information The D.O.T. has defined “hazardous materials” to include those substances or materials which pose an unreasonable risk to health, safety, or property when transported in commerce. At times, FedEx Ground does transport hazardous materials. As such, each contracted entity shall ensure that its employees are informed of the proper loading and handling, required shipping papers and certification forms, and actions to take in the event of a spill Products that are stored in the station for regular business operations may contain material classified as regulated hazardous materials. Contractor’s employees have a right to know these products are stored in the station. 70 Safety and Security Monthly Maintenance Record Section 396.3 of the FMCSR requires motor carriers to have a system of tracking vehicle inspection, repair and maintenance. The Monthly Maintenance Record should be submitted for each vehicle before the end of the following month. The company must collect these records to maintain compliance with the FMCSR. If the company does not receive records for vehicles by the end of the month, FedEx Ground cannot and will not make packages available to that vehicle or to be utilized in its operation until the requirement is satisfied. FedEx Ground Monthly Maintenance Record, OP-108 71 Safety and Security Federal Annual Inspection Under Section 396.17 of the FMCSR, every commercial motor vehicle must be inspected at least once every 12 months. Certain state required inspections meet the Federal requirement. See Station Management for details. If the Federal inspection is performed, FedEx Ground uses a form titled Report of Vehicle Inspection, M-009, to track these inspections. An example of the form appears on the following page. Inspections will be scheduled with a certified vendor and that vendor will determine whether the items and/or parts to be inspected “passed” or “failed” Example provided on next page. Note: If the item is "failed," packages will not be made available to the vehicle until the item is repaired or replaced. 72 Safety and Security 73 Safety and Security Security Practices Badge ID Badge Process The badge is part of the uniform and is displayed at all times while on FedEx Ground property or operating under FedEx Ground operating authority. Temporary Badge Reprint If an individual forgets their permanent identification badge, a temporary paper badge must be printed and used for the day. The temporary badge contains the person’s photo and the human readable barcode number like that printed on their permanent identification badge. This paper badge must be carried at all times. If using a device that requires an identification badge, the individual will need to manually enter their barcode number. The paper badge will also have access control authority using a keypad device. Re-badge Process for Lost I.D.s If an individual loses an identification badge, a replacement must be issued. Once a badge is reissued, the previous badge data is updated in the database and the old badge is automatically deactivated. Badge Expiration All badges expire on May 31st. Contractor business contact/authorized officer must see FedEx Ground personnel to receive a new badge for their employees prior to that expiration date. Search Procedure As a condition of the contract, any Independent Contractor’s driver, or helper entering or exiting FedEx Ground stations may be required to submit to a metal detector, pat-down search and/or a wand search of his or her person and effects. Any person entering a station carrying a package, shopping bag, lunch box, purse, brief case or other similar container, they will be required to permit a search of such item or items upon request of FedEx Ground management or security personnel. 74 Safety and Security Firearms and Weapons No firearms or weapons are permitted on FedEx Ground premises. Items considered as firearms or weapons include, but are not limited to: • Guns • Starting pistols • Flare pistols • Mace or pepper spray • Any knife with a blade exceeding three inches in length Station Violence Policy It is FedEx Ground’s policy to promote a safe environment for its employees and contractors. FedEx Ground is committed to working with its employees and vendors to maintain an environment free from violence, threats of violence, harassment, intimidation, and other disruptive behavior. Violence, threats, harassment, intimidation, and other disruptive behavior in our environment will not be tolerated. All reports will be taken seriously. Disruptive behavior can include oral or written statements, gestures or expressions that communicate a direct or indirect threat of physical harm, and/or actions which result in actual physical harm to another. Individuals who commit such acts shall be removed from the premises and shall be subject to action up to and including contract termination. Dial 911 immediately when violence occurs or appears likely to occur. In cities and areas that do not have 911 systems, call the local police or state law enforcement agency that can respond immediately. All contractor’s employees and vendors are asked to report violence, threats, any unusual actions or situations or knowledge of threats directed at them or their employees or at a FedEx Ground employee or other contractor’s employee from a co-worker, family member or other individual. Such reports should be made to FedEx Ground Management and/or Security. Contractor’s Business Contact or Authorized Officer should never dismiss a threat or suspicious action indicating a potential for violence would not take place. All threats of violence – in any form – should be reported immediately. Parking Personal Vehicles on FedEx Ground property Contractors’ employees can park personal vehicles anywhere at the FedEx Ground station except: • inside the fence line, where applicable • inside the station • adjacent to any load and unload doors 75 Ethical and Professional Standards Ethical and Professional Standards FedEx Ground has made a firm commitment to uphold the highest ethical standards for integrity, honesty and reliability in every situation. Our customers expect and deserve this from each and every one of us. As such, it is imperative that every contractor, and the drivers that contractors employ, understand that incidents of falsification, misrepresentation and dishonesty will not be tolerated. Moreover, such acts are a material breach of the Operating Agreement, 1.10. Falsification includes, but is not limited to: • Forging (i.e. signing or handwriting) the signature of another; • Intentionally miscoding or mis-scanning the status of a package • Falsification of FedEx Ground and/or D.O.T. required documents. (i.e.: hours of service records, medical examiner’s certificates, etc.) 76 Ethical and Professional Standards Uniforms As set forth in the Operating Agreement, every FedEx Ground contractor agrees to have their employees that interface with customers wear an approved uniform. Uniforms not only present a consistent image to our mutual customers, but also permit recognition and prompt access to customer’s homes and/or places of business. FedEx Ground Uniform Catalog • • • • • Shirts: Knit shirts may be worn untucked, or tucked in. Belts: Solid black with silver-tone buckle. Dark Shoes: Solid black recommended, including laces (steel-toe is recommended for safety). Socks: With pants, black. With shorts, white. Photo ID Badge: Should be visible at all times. Contractors can place orders through: http://fedexground.vfsolutions.com. 77 Contractor Recognition Contractor Recognition Programs FedEx Ground wishes to recognize independent contractors which deliver outstanding customer service and embody the Independent Contractor Model. As such, the following recognition programs have been developed: • Contractor Employee Humanitarian Program FedEx Ground wishes to recognize independent contractors which promote human welfare above and beyond community responsibility, particularly in life-threatening situations. Those contractors’ employees which demonstrate these exceptional achievements are designated as Humanitarians. • Entrepreneur of the Year The Entrepreneur of the Year program is designed to acknowledge and celebrate those which embody the Independent Contractor Model. The contractor should see the Senior Manager at station/hub for details about submission guidelines for all recognition programs. 78 Contractor Communications Contractor Communications MyGroundBizOnline Built exclusively for FedEx Ground contractors, mygroundbiz Online is the one-stop virtual source to help FedEx Ground and FedEx Home Delivery contractors operate its business. The website is found at http://mygroundbiz.com. Website features include: • • • • • Products and services Growing the business Contractor Relations Safety Online Settlement and Maintenance forms • • • • • • Business and tax tips Service Culture Uniform information Fuel Prices GroundSource Operations Updates Log-in Guidelines Computer requirements for logging on include: • • • Operating system of Windows 95 or higher Microsoft Internet Explorer browser version 5.5 or higher, and Connection to the Internet Log-in Process 1. Enter the address into your browser: http:mygroundbiz.com (Note: there is no “www” in this web address.) 2. Use your FedEx ID as your User ID • User ID: Your FedEx ID (7digit number that begins with the number 7 found on your FedEx ID badge) • No Password Needed 3. You will be asked for an email address the first time you sign in, after which you will be prompted to sign in a second time. 4. To access settlement click on MyGroundBizAccount 5. Enter FedEx Id, and password, first time login Password is FXG#and the last four digits of the users Social Security number 79 Contractor Communications 6. Once successfully logged in, you will be prompted to change your password, which must be a length of 8-12 characters, contain a number and contain a special character (e.g. #, @, *, &). Note: You are encouraged to log on using your PC at home (or at a library or internet café. Business Discussions At times, managers are required to formally communicate with Contractor’s Business Contacts/Authorized Officer. The contractor business discussion is the only means by which this important communication should occur. Safety Meetings FedEx Ground/Home Delivery provides important information regarding driving safely, D.O.T. regulations, road and weather conditions, and overall safety at FedEx Ground and FedEx Home Delivery. Safety meetings are optional and can reinforce the importance of safety. Contractor Forums Contractor Forums are optional meetings designed for businessmen and women with common business goals. Contractor Forums serve many purposes: • Share important developments within the company and the station regarding operations, maintenance, safety, and contractor settlement. • Develop ideas and suggestions on how to improve station operations. • Identify opportunities for improvement and develop recommendations. • Recognize success. • Establish an open communication forum. Contractor Forums are designed to reinforce the mutual business relationship between FedEx Ground and its independent contractors. 80 Contractor Communications Publications A number of frequent, one-to-four-page publications designed specifically for FedEx Ground and Home Delivery independent contractors provide up-to-date company-related news, helpful safety tips and contractor success stories. Each is distributed electronically to FedEx Ground station managers, who distribute or post hard copies. Publication Sent from Contains Audience Frequency Independent Times Vice President of Contractor Relations Success stories and helpful tips from contractors FedEx Ground P&D, Home Delivery and Linehaul Contractors Monthly Ground Source Ground Source is a sophisticated on-line magazine containing articles of general interest that support FedEx Ground strategic priorities and recognize the efforts of its people. 81 Contractor Relations Contractor Relations Working as a liaison between FedEx Ground and its contracted business partners, the Contractor Relations department will ensure all provisions of the operating agreement are administered fairly; will foster, support, and help grow independent contractor opportunities; and will sustain communications that are focused on assisting contractors to enhance the FedEx customer experience. 82 NOTES ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 83 NOTES ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 84