FedEx Wins Dismissal of Some Claims in Drivers' Lawsuit Seeking Benefits - Bloomberg
FedEx Corp. won partial dismissal of a class-action lawsuit brought by contract drivers who contend they are entitled to full benefits because the company treats them as employees.
FedEx saves money by using contractors because it doesn’t offer them the same benefits and vacation time as it does for employees. The company has encouraged its contractors to consolidate routes and hire their own subcontractors in an effort to bolster its position that the workers are small- business owners and not employees.
The contractor model gives FedEx’s Ground unit a cost advantage of as much as 30 percent over rival United Parcel Service Inc., University of Pittsburgh business professor Marick Masters has estimated.
FedEx Corp. won partial dismissal of a class-action lawsuit brought by contract drivers who contend they are entitled to full benefits because the company treats them as employees.
FedEx saves money by using contractors because it doesn’t offer them the same benefits and vacation time as it does for employees. The company has encouraged its contractors to consolidate routes and hire their own subcontractors in an effort to bolster its position that the workers are small- business owners and not employees.
The contractor model gives FedEx’s Ground unit a cost advantage of as much as 30 percent over rival United Parcel Service Inc., University of Pittsburgh business professor Marick Masters has estimated.
