FedEx Ground faces labor challenge from US contract drivers
Though FedEx was built on a cargo airline, its trucking business is now a big-time moneymaker and a tough competitor for its chief rival, UPS. The argument centers on the more than 14,000 drivers of those trucks with the purple and green “FedEx” on the side that make thousands of stops each day at homes and businesses across America. The drivers are independent contractors who own the trucks, pay all operating costs and get no company benefits. But drivers in Tennessee, California, Massachusetts, Minnesota, South Dakota and elsewhere are suing FedEx, arguing that the company skirts worker protection laws by refusing to hire them as employees eligible for overtime pay, health insurance, workers’ compensation and other benefits. They also want to be reimbursed for back operating expenses and lost benefits.
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