FedEx Files Brief Defending Illegal Contractor Model in U.S. Appeals Court
March 19 2008 - 11:27AM
PR Newswire (US)
FedEx Asks For Review of NLRB Employee Determination WASHINGTON,
March 19 /PRNewswire-USNewswire/ -- FedEx Corporation [NYSE: FDX]
subsidiary FedEx Home Delivery is defending its illegal contractor
model in the U.S. Court of Appeals for the District of Columbia
Circuit. In a brief filed Tuesday, FedEx Home Delivery is
requesting a review of a National Labor Relations Board
determination that drivers at two Massachusetts terminals are
employees and not "contractors" as contended by FedEx. The drivers
at the two facilities overwhelmingly voted in October 2006 to join
Teamsters Local 25. The NLRB ordered FedEx to bargain with Local
25, but FedEx refused to do so and filed the request for review in
the Court of Appeals instead. The D.C. Circuit is the highest court
yet to hear a case on FedEx's illegal contractor model. FedEx's
filing restates the many losing arguments that the company has
tried in previous trials and hearings before the NLRB, civil courts
and state and federal agencies. FedEx's brief focuses on the false
claims of "entrepreneurship" offered by the company and ignores the
many control factors that directs the drivers as employees in
practice. "The National Labor Relations Board has repeatedly and
rightly determined that FedEx Ground and Home Delivery drivers are
employees, yet FedEx is trotting out the same failed arguments and
false promises before the Court of Appeals," said Teamsters General
President Jim Hoffa. "Instead of sitting down, negotiating a
contract with these drivers that literally deliver profits to FedEx
everyday and getting back to business, FedEx is repeating its
mistakes," said Local 25 President Sean O'Brien. "These drivers and
Local 25 are ready to talk and get a contract, but FedEx insists on
delaying the process and raising the stakes with an appeal that
will only result in another legal setback to its scam contractor
model." Massachusetts authorities repeatedly ruled that these same
drivers are employees under state law. The state's Department of
Workforce Development ruled one driver was eligible as an employee
for unemployment benefits. The Massachusetts Commission Against
Discrimination ruled four drivers were employees and could pursue a
claim. The Massachusetts Attorney General issued 13 citations
against FedEx Ground for misclassification and fined the company
$190,000 in an ongoing investigation. The California Supreme Court
and California Court of Appeal upheld a trial court's 2005 decision
that drivers in California were improperly classified as
contractors. In December 2007, FedEx announced that an Internal
Revenue Service audit also preliminarily determined that the
drivers were employees and issued a $320 million back tax bill to
the company. FedEx's brief and other documents are available at
http://www.fedexwatch.com/. Founded in 1903, the International
Brotherhood of Teamsters represents 1.4 million hardworking men and
women in the United States, Canada and Puerto Rico. DATASOURCE:
International Brotherhood of Teamsters CONTACT: Donna De La Cruz of
the International Brotherhood of Teamsters, +1-202-624-8721, Web
Site: http://www.teamster.org/
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