Distinguishing Independent Contractors from Employees

Distinguishing Independent Contractors from Employees

1 
Read the following scenario in the context of the Wilson Bros case study you read in Module 1.

2 
Consider the issues in this scenario as they relate to independent contractors and employees.

3 
Read the questions below and answer all of the questions briefly.

4 
Limit each contribution to maximum 250 words.

 

THE JACK BLOCK CASE SCENARIO

Jack Block has worked as an owner-operator delivering Wilson Bros products across the greater Toronto area for over 10 years. He is one of 64 people in the Toronto operation that perform that role for Wilson Bros.

Recently Jack was approached by a Business Agent of the Teamsters Union (IBT647), Art Ross, who indicated that all owner-operators at Wilson Bros were really employees of the company and should be members of the union. Art indicated that the wages and benefits negotiated for driver/salesmen at Wilson Bros was extremely good relative to the competition and that Jack could stop worrying about making the next sale to a customer or making the next payment on his truck. Art added that Jack’s truck would likely be purchased by the company and the sales would be left to the sales department. All Jack would have to do is make the deliveries and get paid handsomely for it.

Jack enjoys being an owner-operator. He has a sense of independence, even though he wears a Wilson Bros uniform and has a Wilson Bros logo on the side of his truck. He basically comes and goes as he pleases and makes his profit directly on what he sells, so the more he can sell, the higher his income. He has, however, felt the pinch of lower margins for Wilson Bros products lately so maybe there is something to the Teamster pitch.

Questions:

1 
What are the advantages to Jack of remaining an independent contractor?

2 
What are the advantages of joining the union and becoming an employee?

3 
What are the disadvantages to Jack of each course of action?

4 
What tests are used to determine if someone is an independent contractor or employee?

 

5 
What strategies should the company employ to help insure Jack remains and independent contractor?

Click here to request for this assignment help