EDITOR OF REDSTATE
Jack Conway Using His Position in Kentucky to Kill Small Businesses
Jack Conway is the Democrats’ Senate nominee in Kentucky. He is also Kentucky’s Attorney General. And Conway is on a one man mission to kill a large number of small businesses in Kentucky.
He’s also abusing his position to help a major Kentucky business in the process.
Here’s the deal. When you pass a FedEx truck on the road, you are passing a small businessman. That driver is an independent contractor to FedEx. FedEx pays the driver a very large sum of money to drive the trucks, but FedEx does not have to pay the driver wages and benefits because the driver is an independent contractor. Likewise, FedEx does not have the same liability as it would if the driver were an employee.
Consequently, FedEx can pay drivers more and charge you less.
But UPS is a union shop with its drivers. It costs more for UPS to ship packages via truck as a result. And its big truck drivers are all employees. They are at a competitive disadvantage to FedEx as a result. UPS also happens to be a very large employer in Kentucky.
Jack Conway’s response? Attack FedEx with the powers of his office.
Attorney General Jack Conway filed a lawsuit in Franklin Circuit Court on Sept. 2 that could deny FedEx the freedom to classify its drivers as independent contractors.
Conway doesn’t just want to force Spicer and other contractors to become employees. He wants to penalize FedEx for violating unemployment-compensation and tax-withholding policies — and force the company to pay $10 million.
In the lawsuit, Conway accuses FedEx of cheating, labeling its operations “unfair trade practices.”
What Conway calls “cheating” is just FedEx doing something different — something that put it at a competitive advantage. In the process, Conway is potentially shutting down a host of small businesses, businesses which operate as independent contractors to FedEx. But he doesn’t care as long as he can get UPS campaign contributions.