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Old 02-02-2006, 01:24 PM   #1  
Browntail
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Default Bad news for FedEx

NLRB rules that FedEx ground drivers are employees. Although this ruling was for a small number of drivers in a certain area, the ramifications for FedEx are huge if all of their non-express drivers are classified as employees by the NLRB. If the teamsters are successful in unionizing them, (having been to teamster meetings with teamster brass, this is VERY high on their agenda) then watch out FedEx, one of your few competitive advantages over UPS will be gone. This would greatly increase FedEx's costs and would probably have an impact on the pilot's contract negotiations.

This post was not meant to bash FedEx or it's pilots. This is for informational purposes only and myself and every other UPS pilot wishes nothing but the best for the FedEx pilots in getting a superior new contract.

Here is the news article.

UPDATE 1-NLRB rules FedEx drivers are employees - union
Thu Feb 2, 2006 4:45 PM ET
(Adds details, company comment; previous dateline NEW YORK)

CHICAGO, Feb 2 (Reuters) - FedEx Corp. (FDX.N: Quote, Profile, Research) drivers in Northboro, Massachusetts, were wrongly classified as independent contractors, a regional office of the National Labor Relations Board has ruled, the Teamsters union seeking to represent the drivers said on Thursday.

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The union has argued that drivers for FedEx Ground should be considered employees, making them eligible for overtime and other benefits such as health care and overtime.

The ruling was issued Jan. 24.

The International Brotherhood of Teamsters, which represents some U.S. 1.4 million workers, said in a statement that the 23 drivers at FedEx Ground division FedEx Home Delivery can participate in an election on forming a union in the next month.

FedEx has argued that its approach toward its 14,000 drivers promotes entrepreneurship and stresses that only a few dozen, mostly former, drivers have challenged its business model. FedEx Ground spokesman Perry Colosimo said on Thursday that this amounted to a "procedural ruling."

If the company's drivers vote to form a union then FedEx Ground will appeal the Jan. 24 ruling to the NLRB. Colosimo said that it was too early to say what would happen if the NLRB rejected an appeal.

"These drivers have signed agreements with us and knew what they were signing up for," he added.

FedEx Ground has no certified union facilities.

Teamsters President Jim Hoffa said in a statement that the NLRB riling was a clear message to FedEx to stop misclassifying its drivers.

"These workers deserve health and welfare benefits, competitive wages and a voice in the workplace," he said.

The ruling follows similar findings by the NLRB in the past two years. A California court has also ruled that FedEx Ground single-route drivers in that state are employees and that they should be reclassified as such by April 2006.

FedEx Ground is appealing that ruling. More than 30 class action lawsuits from contractor drivers are pending in more 24 U.S. states.

FedEx has said it will fight these lawsuits and is confident that it can protect its contractor business model.

Shares of FedEx fell $1.24, or 1.24 percent, to close at $98.50 on the New York Stock Exchange.

Reuters 2006. All Rights Reserved.

Last edited by Browntail; 02-02-2006 at 01:27 PM.
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