FedEx, drivers settle for $14.5 million

[Bravo Zulu]

FedEx Ground and 203 drivers in California have agreed to a settlement in which the drivers will receive $14.5 million after a 10-year battle over whether or not the drivers were independent contractors.

While the case in California is almost over -- both sides are waiting for court approval -- FedEx Ground is still embroiled in a federal lawsuit in Indiana in which 27,000 drivers from around the country have filed a class-action complaint against the company over their employment status.

Ms. Faris, who is a co-counsel in the federal case, said that case includes multiworkarea drivers who hire drivers of their own to help with their deliveries. She said there are lawsuits filed against the company in 20 other states.

http://www.post-gazette.com/pg/08341/933143-28.stm

[Ikonoklast]

1. FedEx has used 1099 and 'contract' employees for years to keep the Teamsters out

They are just another typical anti-union company that will use any dodge to keep employees from organizing. Those drivers are not 'contract' employees at all, they are directly controlled by the company.

Just a way to shove actual company expenses, like the cost of operation and maintenance of a delivery van, off onto the 'contract' employee.


In trucking, trying to organize your terminal usually means you get fired.

[metapunditedgy]

2. Meanwhile, the lawyers (and courts) get $19 million.

The system sucks.

(I'm frustrated because I'm stuck in a situation which may end in or require class action, and class action mainly benefits the lawyers.)

Hooray for the drivers, though. Sorry it took them so long.