Instructions

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. Review the topic in your textbook if necessary.
3. Read the questions below and answer all of the questions briefly. Also post responses to at least two other students' postings.
4. Go to the Graded Discussion Board before the due date, locate this topic thread, and enter your contribution to the discussion. Be sure to make references to material from the textbook, since part of your grade is for demonstrating your understanding of the information you read.
5. You should avoid repeating anything anyone else has said, or saying "me too" (or equivalent). Your aim is to provide insight and demonstrate your knowledge of the topic. Limit each contribution to maximum 250 words. You can always come back and add more to the discussion later.
6. Return often to read the responses to your contribution. Add more information and insights, and participate politely and encouragingly in the conversation. Keep in mind that you're being graded on your professionalism and your communication skills, as well as your information and insights. (See grading rubric below.)
7. Contributions to the graded discussion must be posted by midnight on the due date.

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?