FedEx Freight Driver to Talk Teamster on Blog
The Change to Win Federation announced a blog for Labor Day that will follow FedEx Freight driver Joe Nuno in his efforts to lead his terminal into the Teamsters family. Joe has courageously spread the union yes message for years inside FedEx Freight and its predecessor companies. Joe, local union leaders and Teamsters union members in Southern California are working together to organize FedEx Freight drivers to get a strong Teamsters contract. You can sign up and stay in touch with Joe.
-- August 31
FedEx Withdraws HOS Exemption Application
FedEx withdrew its HOS exemption application as of 8/16/06. DoT posted FedEx's letter on 8/23/06. Drivers should continue to submit comments on HOS violations to the docket (Remember: Docket No 24231). We will keep updating our Resource page as needed.
According to Traffic World in its Aug. 21 edition (sorry, not available online):
FedEx's request had drawn criticism from some drivers and from the International Brotherhood of Teamsters, which is fighting the company on the indepedent contractor question. "The best reason to give you (for withdrawing the request) is that our business continues to evolve and we are assessing internally whether this is needed internally," FedEx Ground spokesman David Westrick said.
<snip>
The company has fought legal challenges in places including California, Indiana and Massachusetts that seek to classify FedEx Ground drivers as FedEx employees rather than independent contractors. According to a group of lawyers representing labor in these cases, 31 such suits are pending against FedEx Ground or FedEx Home Delivery in 24 states.
That last sentence in the Traffic World quote contains an error: the lawyers involved in the FedEx MDL are representing former and present FedEx Ground and HD drivers. "Labor" is not a plaintiff in those cases.
That raises the most important lesson to all this. FedEx internally can say anything internally they want internally why they internally yanked this HOS exemption application. But go to the DoT docket and read the comments (Remember: Docket No 24231) from individual Ground or HD drivers. FedEx drivers pointed to the realities of their jobs and exposed the "inaccuracies" of the application's depiction of their jobs. Just like drivers are fighting for their rights in the MDL. Now the HOS genie is out of the bottle. And it is up to all of us to press the DoT to get to the bottom of the driver safety issues at FedEx Ground.
-- August 24
More on FedEx Ground/HD and FMCSA
The FedEx Home Delivery application for an FMCSA hours of service exemption raises so many issues, it is hard to know where to start. First, this is a driver safety issue and a public safety issue because the hours of service regs at core are meant to prevent accidents that result from driver fatigue. So anyone who is concerned with driver safety definitely should add their comments at the Dept of Transportation site. (Remember: Docket #24231.)
Additionally, this application is a stark example of FedEx trying to extend its control over its drivers. The company cites regulations such as the FMCSA as reasons why it is obligated to broadly "control contractors" in the face of legal challenges to the misclassification scam - but at the same time the company goes to the government looking for exemptions from the regs that could alter terms in the operating agreement to the company's benefit at the expense of their drivers' safety and so-called "independence."
-- August 17
Disingenuous Nonsense Report: 8.9.06 Edition
Now this throwaway quote doesn't come out of the mouth of one of the FedEx spokes-podpeople, but it still qualifies as nonsense.
According to a real estate developer whose deal with FedEx hinges on a politician's whim, "FedEx is a great corporate citizen."
During the debate over the potential tax implications for the FedEx facility in Gilberts, residents and elected officials cite concern over potential lost tax revenue from an "industrial" development as opposed to a "commercial" development. It seems that industrial businesses only pay property taxes while commercial businesses also contribute sales taxes on transactions.
We couldn't tell from the news accounts, but if this is a FedEx Ground or Home Delivery terminal it would also mean that the company would be avoiding all the other taxes - like state income taxes, unemployment & workers compensation taxes - that the "contractor" scam passes on to drivers.
-- August 09
What Would You Do With $1.94 Billion in Cash?
The Fitch Ratings press release that was posted in the clips earlier made an interesting observation:
FedEx has a strong liquidity position, including $1.94 billion in cash on hand at May 31 and access to a $1 billion revolving credit facility. The proceeds from today's notes offering further bolster the company's liquidity. Fitch expects operating cash flow to remain robust in fiscal 2007, due to continued favorable pricing and the company's focus on improving productivity. However, heavy capital spending and acquisition expenses, along with $850 million in debt maturities and higher dividend payments mean calls on operating cash flow will be significant.
There are any number of things to do with the $1 billion in new cash that FedEx borrowed yesterday and the $1.94 billion in cash on hand that Fitch noted. FedEx can start to pay off its Watkins Motor Lines and Chinese purchases, it can pay down past debt, it can give away more cash to shareholders (like Fred Smith who'll get a dividend bonus of roughly $4.35 million this fiscal year) and it can refurbish certain barns.
Here's a thought. Those who actually make FedEx run should get their proper piece of the profits. The company could re-start the profit share programs for Express employees that were "suspended" after 9-11. Or comply with the law and make the Ground drivers employees. Or reinstate previous insurance coverage for FedEx Freight employees. Or even start a pension program for FedEx Freight East employees.
-- August 04
