Union: FedEx may pay drivers up to USD 33M

The Teamsters union said Friday FedEx Corp. may pay up to USD 33 million in incentives to delivery drivers in California, but a company spokesman says it hasn’t discussed the value of any payments with the union.

The incentives are designed to prompt California single-route drivers to take on more routes or sell existing ones. FedEx spokesman Maury Lane said the company and the Teamsters didn’t discuss the monetary value of the incentives.

Thursday, the package delivery company said the proposed incentives were in response to ‘current regulatory and legal uncertainty in California,’ which involve a dispute over the company’s drivers serving as independent contractors, rather than company employees.

The union said it’s also sponsoring a shareholder proposal at FedEx Corp.’s annual meeting on Monday that seeks to split the roles of chief executive and chairman, in an effort ‘to assure board independence and better corporate governance.’

Both roles are currently held by Fred Smith.

‘The proposal is based in part on the board of directors’ failure to instruct management to fully disclose the liabilities and potential financial impact of a major change in the FedEx Ground business model,’ the union said in a statement.

A spokesman for the union did not immediately return a call for additional comment.