Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

FedEx Potentially Facing $Billions in Fines/Taxes

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

Big Beer Belly

Well-known member
Joined
Nov 5, 2004
Posts
756
FedEx Drivers Demand Employee Status (Arizona Republic, Aug. 22)

If FedEx can tell its ground-service drivers when to work, what to charge customers and what kind of socks and shoes to wear, shouldn’t they be considered employee? That’s what ground workers say in a lawsuit they have filed against the company.
As drivers in a nationwide lawsuit demand the federal pension benefits that are reserved for employees, FedEx founder and Chief Executive Officer Fred Smith has a lot at stake. If a judge in Indiana decides the drivers are employees, they'll seek $1 billion in damages. Plus, it may force the company to overhaul or even throw out a business model that provides FedEx Ground a cost advantage over rival UPS.
"The case does not look good for FedEx," said Michael Harper, a Boston University law professor who is writing the chapter on the definition of "employee" for the Restatement of Employment Law, a reference work to be published by the American Law Institute. The dispute has opened FedEx up to a series of related legal responsibilities, including a potential pretax liability from unpaid payroll taxes of as much as $2.5 billion.
The bigger problem for the second-largest U.S. package-delivery company may be how to overhaul the business model to make it compliant.
A Teamsters Union financial model predicts FedEx's costs would go up $426 million a year if the company compensated the drivers as it does present employees. The model assumes FedEx would pay Social Security and Medicare taxes, unemployment and worker-compensation insurance, vacations, health insurance and 15 hours a week of overtime.

http://tinyurl.com/5zvejn
 
BBB I wonder if the drivers are "entitled" to a job in a capitalist system? Kind of old news, huh?
 
Maybe they should give thier ground side away to ups like dhl did thier air side and it will cut thier cost by 1/3. INCOMING.:laugh:
 
Hi!

FedEx in Canada is facing the same problem there. The drivers, are, practically speaking, employees, but, technically, FedEx treats them as contractors when it suits them.

cliff
YIP
 
Maybe they should give thier ground side away to ups like dhl did thier air side and it will cut thier cost by 1/3. INCOMING.:laugh:

Hey get it right! ! ! We're not giving you nothing! ! We're gonna pay pay you a Billion a year and you're gonna like it. Ya hear!!!!!!!! :rolleyes: :rolleyes: :rolleyes: :rolleyes: ( how many sarcastic smilies can I put here before I crash the server :laugh: )


Brownie and other brownies,

I'm over it. Do I hope that another deal can be made and we all keep flying, sure. But I'm getting on with gettin on. I hope you all believe when I say it was never about you boys and girls.

I'm actually gonna put my stuff through when the time comes and hope I get as far as a sim ride before they say buh bye. I was fortunate to be hired at DHLAirways when they still used your DC-8 sim. Good stuff, great facilities and wouldn't mind playing there again.

FAJ
 
"The case does not look good for FedEx," said Michael Harper, a Boston University law professor who is writing the chapter on the definition of "employee" for the Restatement of Employment Law, a reference work to be published by the American Law Institute.
http://tinyurl.com/5zvejn
http://tinyurl.com/5zvejn[/quote

The situation with the feeder operations at FedEx isn't that much different from that faced by the delivery drivers. Many small "subcontractors" operating equipment owned, specified, or leased back to FedEx, and operating solely in their service on vendor-defined routes and schedules.

Once this thing with the truck drivers gets sorted out, I wonder if the Caravan and ATR drivers will petition for the same "employee" status the delivery guys will have?
 

Latest resources

Back
Top