Tag: FedEx

Supreme Court denies FedEx appeal

The Supreme Court of California on Thursday denied the final appeal of FedEx Corp.’s domestic ground unit, which tried to overturn a lower court’s ruling that FedEx drivers are employees and not independent contractors.

The package delivery company claimed its drivers are independent contractors, which under federal labor laws prevents them from organizing, and from receiving medical, pension and other benefits given to employees.

Last month, a federal judge approved class-action status for a lawsuit filed on behalf of about 14,000 FedEx Ground delivery drivers.

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UPS sees fast-growing Asia unaffected by softer U.S.

Packaging delivery company United Parcel Service Inc expects regional growth in Asia will remain robust and be unaffected by a slowing U.S. economy, a senior company official said on Thursday.

UPS, the world’s largest package delivery company, has said growth this peak season would be below the previous four years, reflecting slowing U.S. economic growth, the housing sector slowdown and expectations of low retail sales growth.

But rising trade within the Asia-Pacific region was boosting demand for freight and logistics services in countries including China, India, Vietnam and Thailand, said Ken Torok, president of Asia-Pacific region for UPS.

“Asia-Pacific is our fastest growing region, as the momentum in the services sector and infrastructure development continues,” he said at a conference to launch a strategic alliance with local logistics firm AFL Pvt Ltd.

“And in the region, intra-Asia trade is the fastest growing and leading segment,” he said.

The UPS annual Asia Business Monitor for 2007 showed intra-Asia trade accounted for the most volume growth from small and medium enterprises. Also, trade with the Middle East overtook Europe and the United States for Asian firms.

“Growth within the region is so strong, that what happens in the U.S. market will not have as big an impact on Asia as it did some years ago,” Torok said.

For UPS, business in Asia grew by more than 20 percent in the third quarter, while China and India grew by more than 25 percent, Torok said.

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Fuel cost ups shipping bill (U.S.)

Carriers once again are responding to higher oil and gasoline prices by passing along the costs. Rather than raise base rates, they impose fuel surcharges.

– DHL raises the Air Express and International surcharge from 18.5 percent of the total shipping bill, to 19.5 percent. The surcharge for Ground Delivery service rises from 5 percent to 5.3 percent.

-UPS raises the Ground Delivery fuel surcharge from 5 percent to 5.25 percent. The surcharge for air and international deliveries goes from 16.50 percent to 17.50 percent.

FedEx fuel surcharges go up the same as UPS, for the same categories.

In catalogs and on Web sites, most of the tables on shipping costs don’t include a fuel surcharge.

The U.S. Postal Service, whose rates are governed by a federal commission, can’t impose fuel surcharges.

That doesn’t stop the postal service from taking other steps to realign pricing with the actual costs of processing the mail. First class stamp rates rose from 39 to 41 cents in May, Since then, the postal service also takes more consideration of the size and shape of a piece of mail, when calculating prices.

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Californian Supreme Court denies FedEx appeal on drivers

California’s Supreme Court on Wednesday refused to hear an appeal by FedEx Corp, which sought to overturn a state court ruling that said the company’s drivers are employees, not independent contractors.

The lawsuit, Estrada vs. FedEx Ground Package System Inc., involves 200 people who worked under contracts struck by FedEx’s predecessor company.

It will be sent back to the state trial court for rulings on drivers’ expense reimbursements and fees for plaintiff’s attorneys, FedEx spokesman Maury Lane said.

A series of similar lawsuits from more than 30 states was recently granted class action status by a court in Indiana.

Those lawsuits also claim the control FedEx exercises over its contractors makes them employees, eligible for benefits.

FedEx has argued the contractors are entrepreneurs, not employees.

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FedEx launches Next-day delivery to Brisbane

FedEx Express (FedEx), a subsidiary of FedEx Corp. has announced the launch of a next-day delivery service between Auckland and Brisbane, Australia. The new service will reduce transit times for shipments to Brisbane substantially, from two business days at present to one business day, and will result in later cut-off times for pickups.

“We have introduced this service in response to the steady growth of New Zealand businesses in the Queensland market, especially those in the marine, education and health sectors,” said Rhicke Jennings, managing director, Australia and New Zealand, FedEx. “We see this new service as a further commitment to the New Zealand market, which is experiencing significant increases in shipments on the trans-Tasman lane.

“The enhanced service will provide customers with increased flexibility and greater convenience, as well as a competitive edge over businesses using other modes of delivery,” he said.

The new one-day service reinforces FedEx ongoing commitment to deliver the highest level of service to customers.

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