Initial Thoughts on FedEx Express Race Case Settlement - April 12, 2007

Certainly, FedEx Express didn't easily part with $55 million.   Or gleefully agree to the large scale changes to its hiring and employment policies.   The FedEx Express workers bravely took on the company and the company blinked.

This latest cave-in by FedEx just goes to show how powerful a group of workers can be. 

Remember how FedEx talked tough as recently as its 2006 annual report.  In Note 19 from the company's annual report, they said

The district court's ruling on class certification is not a decision on the merits of the plaintiffs' claim and does not address whether we will be held liable. Trial is currently scheduled for February 2007.  We have denied any liability and intend to vigourously defend ourselves in this case. 

Remember how FedEx talked tough in the face of the California class action lawsuit for off-the-clock work - another case FedEx settled at the last minute - in the 2005 annual report.

The plaintiffs allege that hourly employees are routinely required to work "off the clock" and are not paid for this additional work. . . . We have denied any liability with respect to these claims and intend to vigorously defend ourselves in these cases.

And now look at how FedEx talks tough about the FedEx Ground misclassification lawsuit in its 2006 annual report.

We strongly believe that FedEx Ground's owner-operators are properly classified as independent contractors and we will prevail in these proceedings.

This has been a very long losing streak for FedEx.