FedEx Wins Dismissal of Some Claims in Drivers' Lawsuit Seeking Benefits

Discussion in 'The Latest FedEx Headlines' started by cheryl, Jun 30, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    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.
     
  2. bbsam

    bbsam Moderator Staff Member

    Little internal update on this. Stroke of genius by Fedex. They will in the coming months contract only with contractors who incorporate. Therefore the contractor basically gets paperwork from the state as legitimate companies so that contractors can't turn around and claim they are treated as employees.