FedEx drivers wrongly classified as independent contractors, NLRB rules
In the latest of a series of decisions exposing FedEx Ground's driver misclassification tactics, The National Labor Relations Board (NLRB) has ruled that 23 FedEx drivers in Northboro, Massachusetts, are employees and not, as FedEx wrongly contends, independent contractors.
The drivers who work for FedEx Home Delivery (FHD), a division of FedEx Ground, are seeking union representation from Teamsters Local 170 in Worcester, Massachusetts. The decision clears the way for the workers to hold an election in the next month. The ruling is yet another big setback for the company, which has been misclassifying drivers to avoid paying taxes and overtime, and to prevent workers from forming a union.
International Brotherhood of Teamsters
"This decision sends a clear message to FedEx Ground — stop misclassifying your workers to fatten your bottom line," said Teamsters General President Jim Hoffa. "These workers deserve health and welfare benefits, competitive wages and a voice in the workplace."
The ruling follows on the heels similar findings by the NLRB over the last two years. The NLRB rulings also align with a California judge's decision from 2004 which ruled in that FedEx single-route drivers in that state were employees and directed the company to reclassify the works by April 2006.
"Government agencies are finally taking notice of FedEx Ground's tactics," said Ken Hall, Director of the Teamsters Small Package and Parcel Division. "Until FedEx is stopped, it will continue to profit at the expense of these workers and all taxpayers."
Massachusetts Attorney General Tom Reilly has opened an investigation into FedEx's use of independent contractors and has taken notice of the ruling.
Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada.
First Call Analyst:
FCMN Contact:
CONTACT: Galen Munroe of the International Brotherhood of Teamsters,
+1-202-624-6904
Web site: http://www.teamster.org/
FedEx drivers win right to hold union ballot
Boston Globe, The (KRT)Boston Globe, The (KRT) 02-02-2006
By Diane E. Lewis
Feb. 2–Truck drivers for a FedEx division in Worcester are employees, not independent contractors, according to a ruling by the National Labor Relations Board's regional office in Boston that gives the drivers the right to hold a secret-ballot election for a union.
The decision against FedEx Home Delivery, a division of FedEx Ground Package System Inc. in Pittsburgh, argues that although 23 drivers at the terminal signed contracts stating that they would operate as independent contractors, they should be considered employees under labor law because they must adhere to the company's rules and regulations and do not exercise full control over work, compensation, training, or routes.
"FHD exercises substantial control over the contractors' performance of their functions," wrote Rosemary Pye, the NLRB's regional director. The decision, issued last week, was released yesterday by the International Brotherhood of Teamsters, which is trying to organize the drivers.
The decision stems from allegations brought by Teamsters Local 170, which said workers were wrongly denied access to a union because the company said they were not full employees.
"If they were independent contractors, they should have been able to operate their business the way they chose," said Mike Hogan, a Teamsters organizer. "We felt it was a sham."
Hogan said the Teamsters Union sent a letter to Massachusetts Attorney General Thomas Reilly yesterday urging him to investigate the company. Meredith Baumann, a spokesperson in the attorney general's office, said there is an open investigation of FedEx's use of independent contractors. "This NLRB decision will be instructive and will assist in our ongoing discussions with FedEx," said Baumann.
Perry Colosimo, managing director of communications for FedEx Ground, said the company would continue to rely on independent contractors.
"FedEx Ground disagrees with the regional director's decision to allow FedEx Home Delivery independent contractors in Worcester to participate in an election for third-party representation," said Colosimo, who said the company would appeal. "These small-business owners deliver industry leading service to our mutual customers without the need for third party representation."
