Straight Talk, or Slow Walk off a Cliff? - August 16, 2007

There is lots to learn over at FedExaminer.

One driver posted FedEx Ground management's response to the latest smackdown in the Estrada case .

"Notice to Independent Contractors: Ruling on Estrada Litigation

On Monday, August 13, an appeals court in California ruled that a limited number of single-work area contractors in the state- most of whom have not contracted with FedEx Ground since 2001 - should be reimbursed as employees for some of their operating expenses. We obviously disagree with the decision and are evaluating our legal options.

What does the ruling mean for you?

*The Court ruling directly affects only a small percentage of contractors in California, many of whom are no longer with the company.

*We believe the court's decision will have absolutely no effect on our ability to continue providing the world-class service our cutomers have come to expect.

*We are commited to giving you straight talk about these and other issues and will continue to keep you updated as developments occur."

Just like John McCain's straight talk - not based in reality and stuck in 2000.

The reporters covering FDX don't seem to get the importance of this appellate decision.  Bloomberg is on top of it.  The Pittsbugh paper had an itsy-bitsy mention of it.

But the detail that matters to the drivers most goes unmentioned.  Of course, the judges ruled that the drivers are ducks...no, the drivers are employees.  But more importantly, the range of expenses that the company owed them will increase their awards.

From the plaintiffs' lawyers statement:

The California Court of Appeal upheld the trial court’s decision finding FedEx Ground drivers to be employees and not independent contractors, thus denying the appeal of FedEx in the landmark Estrada vs. FedEx Ground Package System, Inc. The appeals court also determined that the FedEx Ground drivers were entitled to reimbursement for approximately $6 million in additional expenses bringing the total damages to about $11 million for 200 drivers.

There is a big difference between straight talk and cold cash.