DATE TITLE
September 21 FedEx Abandons Single Vehicle Contractor Model in California‘This is the beginning of the end of the contractor scam at FedEx Ground,’ says Jim Hoffa.  FedEx could pay between $26 million to $33 million in severance costs alone for abandoning its illegal contractor model in California.  FedEx and Fred Smith calls this abandonment a ‘transformation.’  But this is a retreat from the company’s contractor model.  And a termination notice for about 1000 FedEx Ground and HD drivers in California who won’t take on additional routes.
September 07 NBC and Governor Spitzer Eye FedEx GroundOn the Sept. 7 evening broadcast, NBC Nightly News will air a segment looking into the contractor scam at FedEx Ground. [UPDATE: That segment did not air on Sept. 7.  A notice will be posted when it is re-scheduled.]  While on the same day, New York Governor Spitzer signed an executive order creating an inter-agency task force to crack down on employers who misclassify their employees as contractors.  The investigators may soon turn their attention on a large national package delivery company that commonly misclassifies their drivers as shown on NBC.
September 05 Teamsters and FEDXMX Organizing Committee Announce Indy MeetingWe, as FedEx Express employees, have lived and enjoyed working for a company that has historically utilized a PSP philosophy. Take care of your people and your people will take care of you. This worked well for FedEx as the company established itself and developed a new industry.  Today, we live and work in an environment that dictates that the company no longer wished to do business as a company and must evolve into a corporation. This transition signaled an end to the PSP philosophy for us.  We are inviting all FedEx Express maintenance job familes to this open meeting with the Teamsters in Indianapolis.  The Teamsters have proven that they can solidify a contract that is both favorable and fair to all employees they represent.
August 17 Wilmington Update: NLRB Files Complaint for Failure to BargainThe National Labor Relations Board Region 1 in late July charged FedEx Ground with an unfair labor practice charge by refusing to bargain with the certified bargaining representatives, namely Teamsters Local Union 25.  FedEx has answered by claiming, “There is no violation as a matter of law because contractors and swing contractors are not employees under the National Labor Relations Act.”  NLRB Region 1 filed a motion for Summary Judgment before the full Board. The company will again trot out the same dog and pony show.  In short order, the Board will issue a motion that finds FedEx is in violation of the NLRA.  At that point, FedEx will have exhausted its legal options before the Board.  FedEx has indicated to the media that the company expects to re-argue the employee status of the Wilmington drivers in United States Circuit Court.
August 13 CA Appeals Court Upholds Judgment: Drivers are Employees“In practice, therefore, the work performed by the drivers is wholly integrated into FedEx’s operation.  The drivers look like FedEx employees, act like FedEx employees, are paid like FedEx employees and receive many employee benefits….The essence of the trial court’s statement of decision is that if it looks like a duck, walks like a duck, swims like a duck and quacks like a duck, it is a duck…The trial court’s finding are supported by substantial evidence.  FedEx’s control over every exquisite detail of the drivers’ performance, including the color of their socks and style of their hair, supports the trial court’s conclusion that the drivers are employees…Based on these facts, we reject FedEx’s contention that this is a ‘true entrepeneurial opportunity based on how well the drivers’ perform’ and conclude that substantial evidence supports the trial court’s findings that the drivers are employees, not independent contractors.”  Read the entire ruling at our Resource page.
August 01 Teamsters and MEM Mechanics Announce MeetingUnited We Bargain, Divided We Beg - We, as FedEx Express employees, have lived and enjoyed working for a company that has historically utilized a People Service Profit philosophy.  Take care of your people and your people will take care of you.  This worked well for FedEx as the company established itself and developed a new industry.  Today, we live and work in an environment that dictates that the company no longer wishes to do business as a company and must evolve into a corporation.  This transition signaled an end to the PSP philosophy for us.  The Corporation has shown us what we need to do in order to secure our future and livelihood here at FedEx. We need a union now!  We need the Teamsters now!  Signed, FedxMX Organizing Committee
July 24 FedEx Home Delivery Driver Testifies before U.S. HouseA former FedEx driver told a congressional panel on July 24 that the company misclassified him as an independent contractor though it controlled most aspects of his daily work as it would an employee.  Bob Williams, who worked for FedEx Corp. subsidiary FedEx Home Delivery in Northboro, Massachusetts, testified before two House Education and Labor subcommittees.  The hearing was titled “The Misclassification of Workers as Independent Contractors.”  Williams and his fellow drivers petitioned the NLRB to join Teamster Local Union 170.  Following an illegal anti-union campaign, the NLRB has charged FedEx Home Delivery for multiple unfair labor practices.
June 21 NLRB Certifies Teamsters Local Union 25 As Bargaining AgentAfter more than eight months, the National Labor Relations Board (NLRB) on June 21 certified the election in which FedEx Home Delivery drivers at two locations in Wilmington, Massachusetts, voted 24-8 to overwhelmingly choose Teamsters Local 25 in Boston as their bargaining representative.
June 04 Hartford Drivers Latest to Join TeamstersThe single-route drivers at the FedEx Home Delivery terminal in Windsor, CT voted to join Teamster Local Union 671.  The election was held May 11 and the votes were finally counted on June 1 following another failed procedural delay by the company.  The 21 drivers in the unit in Hartford followed up the vote by drivers in Wilmington, MA to join Teamster Local Union 25 in Boston.
May 04 Tell Congress to Act on FedEx Ground ScamThe FedEx Ground independent contractor scam has gone on long enough.  The powers that be are coming around to the cost shifting and tax cheating.  And you can add your voice to the movement that will end the FedEx scam.  The United States House of Representatives Ways and Means Committee is in charge of all revenue and spending decisions in Congress.  On Tuesday, May 8, two Ways and Means Committee subcommittees are holding a joint hearing on the abuse of independent contractor status.  Public statements can be completed at the hearing’s online submission form.
April 18 NLRB Region 34 Rules Hartford Drivers are EmployeesNational Labor Relations Board Region 34 Director Peter Hoffman ruled on April 11 that a group of FedEx Home Delivery drivers in Windsor, CT were employees and eligible to vote in a upcoming union election.  Region 34 Director Hoffman noted that this decision is the fifth decision since November 2004 to find the drivers to be employees under the National Labor Relations Act.  The NLRB has upheld each of the previous four regional directors’ decisions.
April 12 FedEx Express Settles Discrimination LawsuitPlaintiffs’ lawyers reached a settlement with FedEx Express in the large discrimination class action lawsuit at the Express Western Region.  The lawsuit (Satchell et al vs FedEx Express) was filed in 2002 and alleged widespread discrimination in hiring, access to training and promotion.  This settlement includes the standard “no admission of liability” but also saw FedEx Express agree to pay $55 million and pledge to make wide-ranging changes to how it reviews potential hires, evaluates its employees and promotes among its workforce.
April 04 NLRB Region 1 Issues Complaint Against FedExThe National Labor Relations Board Region 1 on March 30 issued Complaints on multiple unfair labor practice charges against FedEx Home Delivery.  The Regional Director’s consolidated complaint documents a systematic campaign by the Company and its managers to threaten, intimidate, punish and economically injure drivers who were seeking to join Teamsters Local Union 170.  The company is charged with retaliating against drivers for testifying before the NLRB and other protected union activities.  The complaint charges that the company fabricated evidence of wrongdoing and terminated four drivers for their protected free speech and union support.  The full complaint is uploaded to our Local Union 170 Resource page.
March 14 FedEx Corporation Changes Bylaws for Director ElectionsAbandoning its two-year opposition to Teamster proposals demanding a majority vote standard in director elections, FedEx Corporation’s board of directors amended the company’s bylaws to adopt a majority-voting standard in uncontested director elections and a resignation requirement for directors who fail to receive the required majority vote.  “This is a triumph for FedEx shareholders who gain a greater voice in the boardroom by having the ability to have an up or down vote on directors,” said C. Thomas Keegel, Teamsters General Secretary -Treasurer.
February 16 FedEx Home Delivery Gives Up in OregonIn December 2006, FedEx Home Delivery withdrew its appeal in the Oregon Court of Appeals of an administrative decision finding a multiple-vehicle ‘contractor’ (and his subcontracted drivers) to be an employee and eligible for unemployment benefits.  Essentially, FedEx Ground and FedEx Home Delivery in Oregon admit that the ‘contractor’ designation wrongly denied Dennis McHenry and his drivers unemployment benefits.  Other Ground and Home Delivery drivers in Oregon should immediately contact the Oregon Employment Department Director Laurie Warner (Phone: 503-947-1470 or email at laurie.a.warner@state.or.us) to ask for a determination regarding their employment status.  You can find the Oregon Attorney General’s brief defending the state’s position at our Resource page.
November 17 Wilmington FedEx Home Delivery Drivers Become First to Elect TeamstersDrivers at two FedEx Home Delivery stations in Wilmington, MA voted overwhelmingly to elect Teamsters Local Union 25.  The drivers stuck together through the deny and delay tactics of FedEx and ultimately had the last word on taking control of their lives.  The drivers rejected the empty FedEx purple promises and ignored the management lies and threats.  FedExWatch welcomes these newest members of Teamsters Local Union 25.
November 09 NLRB Rejects Review in Wilmington, Votes to Be Counted on 11/1711/14 UPDATE: THE VOTES WILL BE COUNTED AT 10:00 AM ON FRIDAY NOVEMBER 17.  The National Labor Relations board rejected FedEx’s request to review the NLRB Region 1 order that paved the way for FedEx Home Delivery drivers in Wilmington, MA to vote in a union election.  The drivers are looking to join Teamsters Local Union 25 in Boston.  The union vote was held on October 20, but FedEx filed a last minute request for the national board to rule on the Region 1 order.  FedEx has tried this delaying tactic in the past and lost and FedEx once again has failed in denying its drivers their rights as employees to select a union.  These drivers rights will not be delayed or denied any longer.
September 28 Second NLRB Region 1 Decision Finds Home Delivery Drivers Are EmployeesA second National Labor Relations Board Region 1 decision found that FedEx Home Delivery drivers at the Wilmington, MA terminal are employees.  This latest NLRB Region 1 decision follows another ruling by the same board region issued in January 2006.  This Wilmington decision adds more challenge to the FedEx “independent contactor” scam by ruling that drivers for mulitple route contractors are also employees of FedEx and that such multiple route contractors are ‘statutory supervisors’ of FedEx.
August 15 FedEx Home Delivery Applies for HOS ExemptionUPDATED 8/24/06: 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.  We will keep updating our Resource page.  END UPDATE FedEx Home Delivery submitted an application for an exemption for hours of service requirements for its drivers on July 10.  The Federal Register announced a comment period will run from July 30 until August 30, 2006.  The exemption application wants the Dept of Transportation to allow drivers who drive their delivery vehicles from their last delivery point to their home AND drivers who drive their delivery vehicles to their terminal to be declared as driving “off hours” and thus exempt from the hours of service regs.  The Teamsters oppose this application for exemption due to the possible pressure on drivers to work off the clock and in the interests of both the drivers personal safety and public safety.
July 17 Express Employees Get 1% Raises while FedEx Officers Get 3.5% RaiseAlthough the admission by FedEx in its annual report that it has received a subpoena from the Dept. of Justice in its investigation into price fixing in the admission of fuel surcharges has made the headlines, the company also filed a quarterly report (Form 8-K) with the SEC that laid out the pay and bonuses for the 5 highest executive officers. The money quote is: “Each named executive officer’s annual base salary was increased by 3.5%.”  But of course, the galling compensation package doesn’t stop with just salary. For example, let’s look at Fred Smith’s basic package - but remember this doesn’t include stock options or other pay that are disclosed in the annual proxy: Annual Salary = $1,399,848 (with his 3.5% raise) Annual Bonus = $2,679,147 Incentive Bonus = $3,375,000 2006 SALARY PLUS BONUS = $7,453,995 Continue reading for information on the pay and bonus packages for David Bronczek, Alan Graf, Dan Sullivan and T. Michael Glenn.
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