And the article needs to clarify a little. They mention "under a contract" then they mention "without benefits/full-time employment/etc'
Here are the different types of "contractors":
-Traditional full-time employees who also have a contract with the company. Probably less common in the US, but more common elsewhere. Could also be considered union workers. They receive full benefits from the company, but have a little extra positioning when it comes to not getting fired for no real reason.
-Staff augmentation/out sourced, most common "contractor" for large companies. These are full-time workers, typically with benefits of some sort from their true W2 employer, but don't go towards the head count of the company paying for them. It also lets them focus costs intro a straight per hour rate, rather than calculating salary, bonus, benefits, etc. These are common with large companies where they need lots of workers but doesn't want to report it to Wall-street or the local news outlet when large downsizing occurs.
-Independent contractors/1099 workers. These are the ones which are usually not receiving any benefits because they work for themselves. They likely receive a 1099 for everyone they work for, and you can more or less set your own hours/schedule.