The California Unemployment Insurance Appeals Board Chief Administrative Law Judge ruled that FedEx Ground did not have a legal leg to stand on in challenging the California Employment Development Dept. audit that found FedEx Ground owed the state more than $7 million for wrongly classifying its single route drivers as contractors.
In 17 concise pages, the ALJ demolished the FedEx Ground argument that drivers were "independent contractors."
Kind of makes any "concessions" seem like a last ditch effort to avoid scrutiny by other states or the feds. Because if one state is going to be made whole through investigating the FedEx contractor scam, one can be certain that other taxmen won't be left holding the bag.
More important to drivers however is why would New Jersey drivers be covered by unemployment insurance as part of a settlement while other states are still fighting legal battles. Why are NJ drivers getting their legal benefits as employees while no one else in the country does?
-- November 28
FedEx Ground and Home Delivery managers woke up with a new set of rules this Monday following the Wilmington drivers vote for the Teamsters. The slogan on the 3 x 5 card saying the Teamsters have never won an election at FedEx Ground is now 'inoperative.'
The Wall Street Journal reported over the weekend of some so-called "concessions" by FedEx Ground in the company's operations. The report said that there will be more people trying to tell drivers that they are "independent" but gave no examples of any change in practices that would actually make drivers more "independent."
Like the song says: Meet the new boss, same as the old boss.
And here is what lame duck Dan Sullivan is apparently telling the management ranks after the Wilmington drivers voted for a voice in their working lives.
We've learned today that the ballots in the union elections in Boston have been counted and that the majority of contractors in both Wilmington FedEx Home Delivery facilities have opted for third-party representation. Unfortunately, the 24 votes supporting third party representation at these terminals are not surprising considering the "say anything, do anything" tactics the Teamsters used during their campaign. We will immediately begin the legal process of challenging this election because of the Teamsters' objectionable conduct, which made a fair election impossible in these facilities.
As you may know, the Teamsters have previously filed 46 petitions for elections over the history of FedEx Ground, FedEx Home Delivery and RPS, our predecessor company. The union was rejected in all but two Teamster organizing efforts, and contractors in those locations eventually withdrew their support of the Teamsters after the union repeatedly failed to deliver on their campaign promises. To this day, 15,000 FedEx Ground contractors in more than 500 facilities have chosen to remain Teamster free.
No doubt, the Teamsters will use this opportunity to claim that they are in the best position to serve the interests of contractors throughout our company. History and recent events show us that this is simply not true. For example:
-) The Teamsters have lost hundreds of thousands of members' jobs in recent years, due primarily to unreasonably restrictive work rules, customer service disruptions caused by strikes, rising membership costs, and higher incidence of member mistreatment. They are desperate to replenish their declining membership and revenue base and have publicly targeted large companies, including FedEx, for attack. Over the past year, many FedEx Ground facilities have been the site for aggressive Teamster campaigns—with obviously very limited success.
-) As you know, the largest constituency served by the Teamsters is UPS and its 220,000 dues-paying drivers. It doesn't take much thought to understand what the Teamsters' real motives are and who will be the primary beneficiary if they can advance their agenda.We firmly believe that the Teamsters are not the right choice for FedEx contractors, FedEx customers, or FedEx. We are also gratified that the overwhelming majority of our contractors completely agree and understand what's at stake for their businesses. For those contractors, we remain fully committed to work directly with them to enhance their environment and increase their opportunities for success.
We will continue to update you on this situation as developments occur.
At FedEx Ground, the truth hurts. The truth is that the Wilmington drivers had enough of the empty purple promises. The truth is that the Wilmington drivers voted to take control of their lives. The truth is that no matter how many times the company repeats its lies, the Wilmington drivers are through with meaningless "concessions." FedEx Ground and Home Delivery drivers don't need the company telling them what are the "right choices" to improve their lives.
And to compound its problems, FedEx will fight another losing battle if it pursues its challenges to the election.
TeamsterPower started a thread over at DailyKos on the Wilmington election, so mosey on over and join in the conversation.
-- November 20
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