http://www.reuters.com/article/idUSN146025620101215
FedEx wins most driver suits over contractor status
Tue Dec 14, 2010 7:47pm EST
* Suits claim drivers are employees, not independent
* US District judge find for FedEx in 20 of 28 cases
NEW YORK Dec 14 (Reuters) - A U.S. District judge ruled in FedEx Corp's (FDX.N) favor in the vast majority of lawsuits brought by drivers seeking union representation.
In a multi-district case, the judge found in most of the cases that Memphis, Tennessee-based package delivery company FedEx had not improperly classified drivers as independent contractors rather than employees.
"We are very pleased with today's significant rulings from the Federal District Court in Indiana in favor of FedEx Ground related to the independent contractor business model," FedEx spokesman Maury Lane said.
"The court found that the plaintiffs are independent contractors as a matter of law in 20 of the 28 remaining certified class cases."
In the other 8 remaining certified cases, the court ruled in favor of FedEx Ground on some claims. In three of these cases the Court ruled against FedEx Ground on at least one claim.
Currently, about 4,500 pilots in the company's air express unit, a fraction of its roughly 290,000 employees and contractors are unionized.
Analysts have said the independent contractor model for truckers provides FedEx a competitive advantage over its larger rival United Parcel Service Inc (UPS.N), where truck drivers are represented by the Teamsters.
The ruling by Judge Robert Miller Jr. said FedEx has no right to discharge drivers at will, the way an employee in an at-will employment relationship can be fired.
Other factors strongly weighing in favor of independent contractor status: drivers can hire helpers and replacements, are responsible for acquiring a vehicle and can use it for other commercial purposes, and can sell their routes to other qualified drivers, the ruling stated. (Reporting by Lynn Adler; editing by Andre Grenon)
FedEx wins most driver suits over contractor status
Tue Dec 14, 2010 7:47pm EST
* Suits claim drivers are employees, not independent
* US District judge find for FedEx in 20 of 28 cases
NEW YORK Dec 14 (Reuters) - A U.S. District judge ruled in FedEx Corp's (FDX.N) favor in the vast majority of lawsuits brought by drivers seeking union representation.
In a multi-district case, the judge found in most of the cases that Memphis, Tennessee-based package delivery company FedEx had not improperly classified drivers as independent contractors rather than employees.
"We are very pleased with today's significant rulings from the Federal District Court in Indiana in favor of FedEx Ground related to the independent contractor business model," FedEx spokesman Maury Lane said.
"The court found that the plaintiffs are independent contractors as a matter of law in 20 of the 28 remaining certified class cases."
In the other 8 remaining certified cases, the court ruled in favor of FedEx Ground on some claims. In three of these cases the Court ruled against FedEx Ground on at least one claim.
Currently, about 4,500 pilots in the company's air express unit, a fraction of its roughly 290,000 employees and contractors are unionized.
Analysts have said the independent contractor model for truckers provides FedEx a competitive advantage over its larger rival United Parcel Service Inc (UPS.N), where truck drivers are represented by the Teamsters.
The ruling by Judge Robert Miller Jr. said FedEx has no right to discharge drivers at will, the way an employee in an at-will employment relationship can be fired.
Other factors strongly weighing in favor of independent contractor status: drivers can hire helpers and replacements, are responsible for acquiring a vehicle and can use it for other commercial purposes, and can sell their routes to other qualified drivers, the ruling stated. (Reporting by Lynn Adler; editing by Andre Grenon)
