News Updates
NMB Continues To Mediate Contract Talks Between Teamsters, UPS
November 6, 2009Representatives from UPS and Teamsters Local 2727, which represents approximately 1,200 UPS airline mechanics, met this week in Minneapolis with federal mediators from the National Mediation Board, in an effort to complete the parties’ collective bargaining negotiations.
NMB officials indicated that progress was made in the form of tentative agreements on a number of open issues.
Several matters remain outstanding, however, and the NMB scheduled another week of mediation starting on January 5, 2010. If the parties are unable to reach an agreement that week, the NMB will schedule additional mediation sessions, depending on the parties’ schedules for the 2010 calendar year.
In the meantime, the parties are operating under the terms of their existing collective bargaining agreement and are each prohibited by law from engaging in any economic activities such as strikes, slowdowns and lockouts.
IBT Airline Division Director David Bourne expressed confidence that the parties will be able to complete their contract negotiations through the NMB’s mediation services.
“The parties will be able to work their way through the mediation process and at the end of the day I am sure we will reach a fair, amicable agreement,” Bourne said. “We will make every effort to reach an agreement at the next NMB session in early 2010, and I am hopeful that we will be successful.”
The Teamsters Union was founded in 1903 and represents more than 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.
UPS' Safest Female Driver
October 30, 2009FedEx, UPS Clash Over Bill On FedEx Labor Rules
October 28, 2009Package delivery rivals FedEx Corp (FDX.N) and United Parcel Service (UPS.N) faced off for the first time over a bill pending in Congress that would change FedEx workers' labor laws, setting out their positions in a debate on Tuesday in Albuquerque, New Mexico.
In question is a reauthorization bill for the Federal Aviation Administration passed in May by the U.S. House of Representatives, under which FedEx employees would be covered by the National Labor Relations Act instead of the Railway Labor Act. The bill is awaiting Senate approval.
"It is legislation written by UPS, for UPS and only benefits UPS," said FedEx spokesman Maury Lane. "Everyone else suffers."
The event, held at the Greater Albuquerque Chamber of Commerce, was the first time representatives from both companies talked face to face about the issue.
FedEx has maintained that as an airline, its staff should continue to be covered by the Railway Labor Act, which governs airlines and railroads. FedEx began as an express delivery airline about 36 years ago, before adding trucks.
FedEx has said switching its governing agency amounts to a bailout for UPS and would strip FedEx of its competitive edge.
FedEx has taken issue with a provision in the bill that would make it easier for its employees to unionize locally instead of having a nationwide vote.
UPS, meanwhile, argues that FedEx employees should be governed by the same law that most of its staff fall under -- the NLRA's -- since FedEx also runs a ground delivery service much like UPS's.
"The fact of the matter is packages are not delivered by airplanes, they are delivered by drivers and vehicles," said UPS spokesman Malcolm Berkeley, after the debate.
"What is it about their express drivers that is so special that they should be under a different law than every other driver in the country?"
While UPS drivers are represented by the Teamsters, FedEx drivers do not have union representation.
"It's time to level the playing field in the package delivery industry," Ken Hall, the Teamsters' vice president and Package Division director, said in an emailed statement.
"No one company should get a special deal at the expense of U.S. taxpayers," Hall said.
FedEx launched an Internet campaign at www.brownbailout.com in June tied to the bill.
UPS Freight Workers in Kansas, Maryland Vote Unanimously to Ratify Contract
October 22, 2009(Washington, D.C.) —UPS Freight workers in Federalsburg, Maryland., and Wichita, Kansas, unanimously voted to ratify their first-ever contract as Teamsters. The Teamsters now represent nearly all of the 12,600 UPS Freight drivers and dockworkers eligible to join the union.
The workers are represented by Teamsters Local 795 in Wichita and Local 355 in Baltimore. The Teamsters now represent all but two UPS Freight locations that employ 50 workers.
“This has been the largest organizing victory in the freight industry in 25 years and it shows the determination of these workers to form a union,” said Teamsters General President James Hoffa. “We look forward to representing all UPS Freight drivers and dockworkers eligible to join the Teamsters.”
“We are proud to have these workers join our ranks and we look forward to representing them,” said Teamsters Package Division Director Ken Hall. “The workers now have a strong voice in the workplace that they never had before.”
The Teamsters kicked off the organizing campaign in 2006 when the union organized UPS Freight (formerly Overnite Transportation) workers in Indianapolis and negotiated a contract with the company that was ratified by a 107-1 vote in October 2007. The Teamsters won a card-check agreement from UPS in December 2007, and in January 2008, launched its nationwide campaign.
By November 2008, the Teamsters represented more than 12,400 UPS Freight workers in 42 states.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.
Teamsters Applaud Attorneys General for Action on FedEx Ground's Illegal Driver Misclassification Scheme
October 20, 2009(WASHINGTON) – The Teamsters Union on Tuesday praised attorneys general in New York, Montana and New Jersey for putting FedEx Ground (NYSE:FDX) on notice that the company faces legal action for violating labor laws, including shifting tax obligations onto residents through an illegal driver misclassification scheme.
“FedEx Ground can’t get away with being a bully anymore, hiding behind its army of lobbyists to avoid responsibilities to workers and to American taxpayers,” said Teamsters General President Jim Hoffa. “This is an issue of fairness. The laws of this country apply to everyone.”
Attorneys General Andrew Cuomo of New York, Steve Bullock of Montana and Anne Milgram of New Jersey sent a letter Tuesday to FedEx Ground warning the company that it faces legal action, including restitution, damages, civil penalties and other relief over its illegal misclassification of drivers.
“FedEx’s illegal misclassification of its drivers has resulted in a serious injustice to more than a thousand FedEx drivers in Montana, New Jersey and New York,” the letter said, also adding that “…besides hurting FedEx drivers, FedEx’s practices hurt the states of New Jersey, New York and Montana when proper taxes are not paid. FedEx’s practices also hurt other employers, which face unfair competition as a result of FedEx’s illegal cost-cutting measures.”
The three states found that FedEx Ground drivers are illegally misclassified as independent contractors, therefore denying them employment rights such as workers’ compensation benefits, anti-discrimination laws and wage and hour protections. FedEx Ground drivers are required to spend thousands of dollars for trucks, repairs, uniforms, fuel and other equipment. The company controls the hours they work, how they dress and when they drive their own trucks.
“FedEx Ground has been cheating its workers and fleecing the taxpayers for too long,” said Ken Hall, Teamsters International Vice President and Director of the Package Division. “Andrew Cuomo, Steve Bullock and Anne Milgram deserve credit for standing up to a powerful multinational that pads its profits by skirting state laws. Thanks to them, FedEx and its CEO Fred Smith won’t be allowed to profit from this scheme at the expense of its workforce and the American taxpayers.”
FedEx Ground is currently the subject of investigations by 30 other states over its misclassification scheme. Also, more than 45 class-action lawsuits have been filed against the company in state and federal courts over the issue.
Misclassification of employees not only cheats workers, but leads to the loss of federal income and employment tax revenue. It is estimated that more than $4.7 billion in federal income is lost due to this practice. At the state level, misclassifying 1 percent of workers results in an average of $198 million lost annually to state unemployment insurance funds.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.
Teamsters Now Represent Nearly All UPS Freight Drivers and Dockworkers Eligible to Join Union
October 9, 2009The International Brotherhood of Teamsters now represents nearly all of the 12,600 UPS Freight drivers and dockworkers eligible to join the union, announced Teamsters General President Jim Hoffa.
Nearly 100 workers in Nebraska, Maryland and Kansas recently signed authorization cards to become Teamsters. In Omaha, Neb., 55 workers represented by Local 554 recently ratified their first-ever contract unanimously. The Federalsburg, Md., and Wichita, Kan., workers will be holding ratification votes soon.
The Teamsters kicked off the organizing campaign in 2006 when the union organized UPS Freight (formerly Overnite Transportation) workers in Indianapolis and negotiated a contract with the company that was ratified by a 107-1 vote in October 2007. The Teamsters won a card-check agreement from UPS in December 2007, and in January 2008, launched its nationwide campaign.
By November 2008, the Teamsters represented more than 12,400 UPS Freight workers in 42 states. The Teamsters now represent all but two UPS Freight locations that employ 50 workers
“Our continued success to organize UPS Freight workers is a great victory,” Hoffa said. “They were determined to become Teamsters and we are proud to have them among our ranks.”
“These drivers and dockworkers have shown a great commitment to joining the Teamsters and we look forward to representing them,” said Teamsters Package Division Director Ken Hall. “We encourage UPS Freight workers who have not yet signed cards to do so now so they can also start benefiting from a great contract.”
James Sheard, Secretary-Treasurer of Local 554 in Omaha said the UPS Freight workers ratified their contract on Oct. 4.
“After they saw the benefits of being a Teamster at other locations around the country, they decided to get on board,” Sheard said.
Jesse Castillo, President of Local 795 in Wichita, said the 20 UPS Freight workers there realized that not being a Teamster meant inequality for them.
“They saw inequities in applications and work rules because they were not under a Teamster contract,” Castillo said.
Irvin Williams, Vice-President of Local 355 in Baltimore, said the 20 UPS Freight workers at the Federalsburg facility came aboard after seeing a big increase in insurance costs.
“We had a gentleman who was ready to retire but said he couldn’t because of the insurance costs,” Williams said. “We also had key people who worked very hard on this campaign.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.
Stuck on the Road
September 21, 2009Teamster Retires After 63 Years at UPS
September 10, 2009Teamsters Call for Independent Board Chair at FedEx; Urge Investor Support
August 31, 2009The International Brotherhood of Teamsters today asked shareholders of FedEx Corporation (NYSE: FDX) to support the union’s proposal for an independent board chairman at FedEx’s upcoming annual meeting.
In a letter to shareholders, Teamsters General Secretary-Treasurer C. Thomas Keegel said that Frederick W. Smith’s dual role as chairman and chief executive of FedEx has resulted in a CEO-dominated board incapable of providing the rigorous, independent oversight of management that investors require. FedEx’s annual meeting will be September 28 in Memphis, Tennessee.
“FedEx’s lack of independent board leadership, compromised board independence and effectiveness, chronic poor performance, excessive executive pay, and questionable business strategies underscore the urgent need for an independent chairman to lead FedEx’s board in holding management accountable and providing strategic oversight and guidance,” Keegel said.
FedEx has significantly underperformed in the trucking and shipping industries, the S&P 500 Index, and compared to direct competitor United Parcel Service Inc. on a one-year, three-year, and five-year total shareholder returns basis, according to data from The Corporate Library (TCL), a leading provider of independent corporate governance research and analysis. Meanwhile, Smith has raked in exorbitant pay, accruing more than $84 million over the past three fiscal years while shareholder value has fallen by 50.2 percent. Profits made on the exercise of stock option grants with no performance hurdles make up the bulk of Smith’s pay.
The letter also raised concerns that Smith’s controlling influence on a board that includes potentially conflicted and over-extended directors has led the board to rubber stamp an unlawful and unsustainable business model at the company’s second-highest revenue generating business segment, FedEx Ground, which has exposed the company to staggering legal and financial risks.
The FedEx Ground business model, which relies on the misclassification of employee drivers as “independent contractors,” has allowed FedEx to evade expenses like payroll taxes, overtime pay and benefits. Numerous state courts and government agencies have found that FedEx Ground’s contractor model is a sham and are looking to collect the money owed to workers and states. According to an August 2008 Bloomberg article, the pre-tax liability from unpaid payroll taxes alone could reach as high as $2.5 billion.
“Many FedEx shareholders have already joined our call for independent board leadership, with 34 percent of the vote by shareholders supporting the Teamsters’ independent board chairman proposal in 2008,” Keegel said. “We believe that now, more than ever, an independent chairman is necessary for the company to successfully navigate the extraordinary legal, regulatory, reputation- and recession-related challenges facing FedEx.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.
FedEx Ground Drivers Win Group Status in Eight States
July 28, 2009- 1 of 5
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