Official Statement of
Jim Hoffa, Teamsters General President
October 6, 2006
Today, President Bush used mediocre
monthly payroll figures to give himself a self-congratulatory pat on the back
about an economy that is failing American workers. It is fitting that the White
House chose to spin their skewed economic message at a FedEx facility in
Washington, D.C., one of the most anti-worker companies in the United States.
FedEx has created a
business model with a cutthroat mentality even Machiavelli would admire. CEO
Fred Smith will collect over $10 million in compensation and dividend income
this year alone, money that he earns by exploiting thousands of FedEx Ground
drivers through an “independent contractor” model.
FedEx has abused this
independent contractor status to shift risks and costs onto the drivers and
taxpayers. The drivers take on costs that should be paid by the company,
including trucks, uniforms and digital scanners.
As a bonus, this model
allows FedEx to avoid paying income tax withholding, unemployment insurance
premiums and worker compensation contributions while dodging state labor laws
and federal laws like the Family Medical Leave Act and Equal Employment
Opportunity Laws.
The good news is that this
model is unraveling as state and federal agencies expose this business model for
what it isa scam perpetrated upon the American workforce.
A California court ruled
this business model to be illegal in 2005. California found that FedEx Ground
owed nearly $8 million in back taxes. Since 1988, the National Labor Relations
Board (NLRB) has ruled seven out of eight times that the FedEx Ground drivers
are employees and not independent contractors.
The Teamsters won two such
NLRB decisions in Massachusetts this year and drivers at three FedEx Ground
locations are on their way to joining the Teamsters and securing their rights
through collective bargaining.
With every record profit
reported by corporate America and new stock market high, working men and women
in America are reminded that they are expendable, a disposable part in a machine
that is designed to make money in the most efficient manner possible.
The rich get richer, lining
their pockets with profits earned on the backs of exploited workers, while the
majority of Americans have not seen any appreciable increase in their income. It
is fitting that Bush held his press conference at FedEx, a company that is
blatantly violating its workers’ rights every day.
The White House should be
more careful in selecting the company that represents our “healthy economy,”
rather than choosing one as political payback because the CEO hosted a
$2,100-a-plate fundraiser last week in Memphis, where Bush was the headliner.