When is a company not a company?

I’ve recently become aware of a couple examples of how much the world has changed while it tries to conceal this fact. In my first example is something I had know about but since not being an insider did not understand the implications. I believe we have huge portions of the economy that are basically false advertising and are getting away with it because it happened slowly over a long period of time.

I have a friend that I’ve known for likely ten years, we met at a blogging site but since have met in person a number of times. He worked as a highly skilled assembler of  aerospace parts, something he thought was safe until his company moved overseas. This move happened at a time that a number of other companies pulled the same move and suddenly there was a glut of highly skilled workers and he was forced to come to grips with his future being shattered and at the same time expected to recareer.

He took some time off and decided he’d like to drive a truck. Long range and complex loads were for him as he could pass the tests and acquire the licenses being a pretty sharp guy with a mechanical background. He did this quickly and was on the road but it soon became evident that the same big business ethics that dumped him on his ass in another industry were at play in his new role.

The company he works for is called a trucking company, they advertise the service of trucking but they don’t own any trucks. The modern way to operate is to put up a sign and hire a room full of office people that pose as a trucking company but when an order comes in they “hire” a trucker like my friend to move the goods. This way the company does not have to pay truckers as employees even though they are posing as a trucking company. They also don’t have to maintain any equipment since all that is the employee’s I mean “contractor’s” responsibility. You see what is going on here?

I was a little shocked to learn this as it came out slowly because this is an accepted practice, for now. When he posted about buying a truck I did not understand that he was reaching into his own credit to buy that truck that immediately was sent to the paint shop to have the company colors applied, his name and his first name only appeared in tiny letters near the door.

Later he wrote about how the company used numerous tactics to get out of paying him, like how he would be called for a pickup at a certain time and then made to wait hours that he would not be paid for. They also penalised him for not making connections that were impossible if not illegal to make. Since the company had divided the work over numerous small contractors they were able to take advantage of them being the big fish while the driver was the easily replaceable small fish.

Even though he owned the truck and made all the payments he was not allowed to take any jobs from anyone else which is odd as you’d think that being under the complete direction of one employer would instantly make you an employee.

You should not be allowed to present your company as something it is not. If you call yourself a trucking company you should not outsource your entire business, what they are is brokers and not truckers and deserve no exclusive rights without offering employment.

Here’s my second example in this early similar scenario that reared its ugly head about 18 months ago when I spoke to a local fellow who does groundskeeping. The fellow said he also worked as a roofer actually he said his main skill and trade was as a roofer but had to supplement his trade and chose to call himself a grounds keeper because there are laws that prevent him from calling himself a roofer.

We spoke more and he had an interesting story. It seems that the local industry of those who legally call themselves roofers are actually just roofing brokers with signs and business cards that falsely purported them to be actual roofers as they have no hammers and no trucks and worst of all no employees but they do have a lic. and those are limited and hard to get.

The trouble is his “boss” only calls him when he has a job, actually bosses as he contracts to a number of “license holders” who not only expect him to show up at a job site with one day notice but if you can’t because you are finishing another job they often penalize them for it by withholding future jobs. Worst of all with this new system of exploit the lowest is as a contractor he is no longer able to claim unemployment during the winter months as he used to when he started in this business as an employee.

He’s on his own for the bad times and it seems for the good times as well as the company scoops the bulk of the profits because they can. All these changes were know about in advance by those who perpetrated them, it was only a surprise for those who were negatively impacted.

 

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