DATE TITLE
August 21 Bloomberg Tries to Quantify Misclassification SchemeThe most recent update article by Bloomberg on FedEx Ground’s misclassification scheme tries to put the analysis in terms that traders and shareholders: cold hard cash.  Specifically, the estimated amount of money around the potential liabilities and operations costs for properly classifying FedEx Ground drivers.  FedEx’s spokespodperson may dismiss this as ‘speculation’ but the FedEx lawyers in their legal disclosure forms tell the real story.
August 08 FedEx Express Mechanics Committee for Change Newsletter Iss 5 OnlineFedEx Express employees in the mechanics class and craft have launched a campaign to form a union with the Teamsters.  This newsletter is written by us and highlights issues we believe are important to all of us. - FedEx Express Mechanics Committee for Change
July 29 FedEx Corp Discloses More FedEx Ground Details in 2008 Annual ReportThe FedEx Corp disclosure on the FedEx Ground issue in its 2008 Annual Report speaks for itself.  “As described in Note 17 of the accompanying consolidated financial statements and the “Independent Contractor Matters” section of our FedEx Ground segment MD&A, we are involved in a number of litigation matters and other proceedings that challenge the status of FedEx Ground’s owner-operators as independent contractors. FedEx Ground anticipates continuing changes to its relationships with its contractors. The nature, timing and amount of any changes are dependent on the outcome of numerous future events. We cannot reasonably estimate the potential impact of any such changes or a meaningful range of potential outcomes, although they could be material. However, we do not believe that any such changes will impair our ability to operate and profitably grow our FedEx Ground business.”
July 11 FedEx Express Mechanics Nuts and Bolts Vol 3 OnlineFedEx Express employees in the mechanics class and craft have launched a campaign to form a union with the Teamsters.  This newsletter is written by us and highlights issues we believe are important to all of us. - FedEx Express Mechanics Committee for Change
June 25 MDL Class Notices Mailed; FedEx-IRS Talks OngoingThere were two major updates involving FedEx Ground’s legal challenges in the past week.  On the June 18 quarterly conference call, FedEx Corporation’s General Counsel Christine Richards answered a question about the company’s talks with the IRS: “We’ve started those conversations. At this point in time there’s a good chance they’ll continue on into the first quarter. We’re still at the audit level and depending upon the outcome at that level, we will then see how we go forward.” In the multi-district litigation, the plaintiffs’ lawyers announced that class notices for “27,165 past and present FedEx Ground/Home Delivery drivers across the U.S.” were mailed on June 25.
June 23 FedEx Express Mechanics Committee for Change Newsletter Vol 2 OnlineFedEx Express employees in the mechanics class and craft have launched a campaign to form a union with the Teamsters.  This newsletter is written by us and highlights issues we believe are important to all of us - FedEx Express Mechanics Committee for Change
June 13 Expert Report in MDL Says Drivers are EmployeesA valuable plaintiffs’ expert report was submitted to the Northern Indiana courts and found its way onto the public docket.  Robert W. Wood is “author of Legal Guide to Independent Contractor Status originally published in 1992 now in its Fourth Edition” and “author or editor of 31 books and over 1,000 articles published in legal, accounting and business periodicals.” Wood has often been “engaged to help clients establish bona fide independent contractor arrangements” and “drafted, edited or assisted in drafting dozens of independent contractor agreements over nearly three decades.” Wood has “argued far more frequently for independent contractor (rather than employee status) of workers.  Woods’ conclusion in his report? “FXG’s drivers are the cornerstone of its enterprise.  To a truly extraordinary degree, drivers are integrated within FXG’s global system...In my opinion, plainly, unequivocally, and without qualification, the P&D drivers do not (and cannot) constitute bona fide independent contractors under any existing test for assessing worker status.” Wood’s report is uploaded on our Resource page.
June 11 FedEx Express Mechanics Commitee for Change Newsletter Issue 1 OnlineWhat we are after is a contract - a written, legally binding agreement that addresses and protects our workplace issues, wages, benefits and retirement.  The latest downgrade in our pension benefits highlights our urgent need to protect ourselves and our families with a binding contract backed by a powerful union - the Teamsters. - FedEx Express Mechanics Committee for Change
June 06 FedEx Express Mechanic Talks About Pension GrabFor most of the 35 years at Federal Express, the hard work and dedication of the Express workforce delivered the profits that fueled the so-called “People-Service-Profit” slogan.  But something happened between 1998 and 2000 when Federal Express became “FedEx” and the company bought RPS/Caliber. Then, one day in early 2007, that “People-Service-Profit” promise was broken forever when the company took away the Express employees’ pension.  And as of June 1, the FedEx Express pension was gone overnight.
May 27 Teamsters Support Congressional Action on LegislationNew legislation to prevent corporations from abusing workers and cheating taxpayers has the Teamsters’ strong support, General President Jim Hoffa said Thursday.  The Employee Misclassification Prevention Act of 2008 will make it harder for employers to improperly classify employees as “independent contractors.”
May 07 Senate Republicans Keep FAA Bill from PassingThe Federal Aviation Administration re-authorization bill stalled in the Senate when Republicans voted “nearly unanimously” against ending debate and moving to an up-or-down vote on the proposed legislation.  There was a bill that funded the FAA before the Senate but Republicans prevented a full vote from happening.  So it seems as though the Senate Democratic leadership will offer a band-aid to fund FAA at previous levels until 2009.
May 02 Latest Senate Action on FedEx/RLA Language in FAA BillThe U.S. Senate this week brought the Federal Aviation Administration reauthorization bill to the floor.  The Hill newspaper and UPI newswire had good overview stories on the bill and the House language that addresses the FedEx special interest clause on Railway Labor Act application. As of May 2, there are still tax provisions - unrelated to the FedEx issue or FAA - that were added as amendments that have clogged up consideration of the reauthorization bill.  Senate Majority Leader Reid will allow for the weekend to see if these tax provisions can be resolved.  Senator Reid scheduled a cloture vote for Tuesday.  But as with everything else in the Senate, that vote can be postponed.
April 30 NLRB Files Brief in DC Circuit CourtThe National Labor Relations Board filed its brief before the DC Circuit Court in defense of the Board ruling that the Wilmington, MA Home Delivery drivers are employees.  In its presentation of the facts, the NLRB brief said, “The drivers’ agreement, which the drivers did not negotiate, establish a full-time work arrangement and control their work...Except for the route assignment and for one aspect of compensation, the operating agreements are non-negotiable and presented on a take-it-or-leave-it basis.” The brief is uploaded to our Resource page for the Local 25 case.  FedEx now has the opportunity to file a response brief.
April 21 New York Times Reporter Writes About FedEx in New BookSteven Greenhouse, the labor beat reporter for the New York Times, released a book called The Big Squeeze which focuses on the hardships for today’s working men and women.  The New York Times is serializing parts of Greenhouse’s book.  The April 20 Sunday Times had an extensive excerpt that focused on former FedEx Ground driver Jean Capobianco. QUOTE: After she recovered (from cancer), Jean started looking for work. She spotted a help-wanted ad from Roadway Package Systems, which said it was looking for independent contractors to deliver packages.  “I needed a job,” said Jean. “They tell you, ‘You’ll make all this money working for yourself.’ ” She soon discovered that her new employer had embraced a controversial strategy to squeeze down costs by millions of dollars each year: it insisted that Jean and the other drivers were independent contractors, not employees.
April 10 Mass. Ground/HD Drivers to Hold Meeting on April 13Following the denial of the Massachusetts misclassification case as a class action lawsuit, all MA past and present FedEx Ground and Home Delivery drivers wishing to pursue a misclassification claim MUST file an individual complaint against FedEx to protect your rights.  The lawyers representing the existing named plaintiffs are holding an informational meeting at 11:00 am on Sunday April 13, 2008 at the Hilton Garden Inn Worcester at 35 Worcester Center Blvd. in Worcester, MA.  The law firm directs questions to their web site at www.prle.com (click on the class action page and then click on FedEx lawsuits.) Neither the International Brotherhood of Teamsters nor any affiliated local union is a party to this litigation; this announcement is for information purposes only.
March 26 FedEx Won't Say How Many Single-route or Multi-route ContractorsChristine Richards is the FedEx Corporation’s General Counsel and Secretary.  She primarily handled the questions from analysts on FedEx’s misclassification troubles on the March 20, 2008 quarterly conference call.  She did her best not to answer those questions.  Especially a question about exactly what the percentage of single work area versus multi work area contractors were in the past and are presently.  If FedEx wants to convince observers to believe that the future of the Ground division is in the hands of multi-route drivers, the company will need to show how this ‘transition’ is going in practice.  Although Counselor Richards didn’t offer any answers, other FedEx lawyers provided some historical data in the multi-district litigation.  And we are posting it as a public service.
March 19 FedEx Files Brief in U.S. Court of AppealsFedEx Home Delivery is defending its illegal contractor model in the U.S. Court of Appeals for the District of Columbia Circuit.  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. 
February 28 Teamsters Support Connecticut Misclassification LegislationThe Teamsters strongly support legislation before the Connecticut General Assembly that would create a task force to review whether employers are misclassifying workers as independent contractors.  The Connecticut bill would review and coordinate the investigation and civil and criminal prosecution of state and federal laws regarding misclassification. The Connecticut General Assembly Committee on Labor and Public Employees is considering this legislation.
February 01 Michigan Governor Signs Executive Order on MisclassificationMichigan Governor Jennifer Granholm on February 1 issued an Executive Order to stop employers from illegally classifying its workforce as independent contractors. Granholm’s action will increase oversight over employers to assure that properly classified employees rights and benefits are protected. The order also created a task force to improve enforcement actions.
January 25 IRS Information for Ground/Home Delivery DriversThe IRS has previously said that a priority for 2008 is to increase vigilance over employers that intentionally misclassify its workforce as “contractors.” The IRS sees this illegal behavior as contributing to the federal “tax gap.” There are several IRS resources for FedEx Ground and Home Delivery drivers that should be evaluated by anyone who seeks to prove they are employees or joint employees of FedEx.  FedExWatch offers these resources and links for informational purposes only and all drivers should seek professional tax advice for their own personal situation.
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