Latest Court Action in Fight for Rights by
Misclassified Employees
October 16, 2007
(Washington, D.C.) – Teamsters General President
Jim Hoffa on Tuesday praised a federal judge’s decision to grant class-action
status to FedEx Ground drivers who say the company denied them benefits and
proper wages.
Judge Robert Miller of the U.S. District Court
for Northern Indiana on Monday certified a class-action lawsuit brought by
present and former FedEx Ground drivers.
FedEx Corporation (NYSE: FDX) employs about
15,000 so-called "independent contractors" at its Ground and Home Delivery
subsidiaries. The potential size of the class could be as many as 20,000 drivers
depending on the time period still to be determined.
"FedEx is running out of places to hide," Hoffa
said. "The FedEx Ground and Home Delivery drivers have carried on their fight
for many years as the company has pulled out all the stops to defend their
illegal model. Another judge has once again ruled against the FedEx
arguments. The Teamsters applaud the drivers who are fighting for their rights
and proper compensation."
This federal judge's ruling is the latest in a
series of recent decisions that found FedEx Ground drivers to be employees and
not independent contractors.
In August, the California Court of Appeal upheld
a lower court ruling that the drivers are employees and not independent
contractors. FedEx responded in California by simply firing all the drivers who
were the subject of the court rulings to limit future liabilities. FedEx has
appealed the Court of Appeal ruling to the California Supreme Court.
In September, the National Labor Relations Board
in Washington ordered FedEx to bargain with Teamsters Local Union 25 over the
work conditions of two FedEx Home Delivery Facilities outside Boston. The NLRB
earlier found these drivers to be employees rather than independent contractors
and ordered an election. The drivers elected Local 25 as their bargaining
representative. FedEx has refused to adhere to the NLRB order and appealed the
NLRB rulings before the US Court of Appeal DC Circuit.
"FedEx may be able to delay making these drivers
employees, but the company is fighting a losing battle against a lot of
authorities in a lot of places," said Teamsters International Vice President and
Parcel Division Director Ken Hall. "FedEx is sticking to a very risky
strategy. There are more and more angry drivers. The customers who will ship
with FedEx this year for the holidays might not get the service they are paying
for."
The recent rulings in the FedEx Ground
multi-district litigation including the certification order can be found at
http://www.fedexwatch.com/resources/content/fedex_ground_home_multi_district_litigation/