Delivery Drivers Deliver Trouble to FEDEX WSJ

[all]

Ground War
Drivers Deliver Trouble to FedEx
By Seeking Employee Benefits
Some 'Contractors' Contend
Company Calls All Shots;
IRS Examines Complaints
Chief Says 99% Like System
By MONICA LANGLEY
Staff Reporter of THE WALL STREET JOURNAL
January 7, 2005; Page A1
MADISON, Tenn. -- As a driver for FedEx Corp.'s ground division, Brion Butterbaugh must wear a full FedEx uniform, observe a long list of delivery and pick-up times and hook his truck keys on the finger FedEx tells him to when walking to doors to deliver packages (the little finger of the nonwriting hand).
Mr. Butterbaugh, 41 years old, isn't a FedEx employee. He's one of 13,500 "contract" drivers for FedEx Ground who operate their own trucks and pay for their gas and other expenses. The company says these drivers are "independent" and has advertised that becoming a contractor is a way to "be your own boss."
But some contractors have set off a high-stakes battle with FedEx by contending the company calls all the shots in their operations. They say rules such as the little-finger requirement show they're essentially employees of FedEx, with all of the risks and none of the benefits, such as health insurance and a retirement plan.
Last July, FedEx Ground drivers who had filed a class-action lawsuit against the company won a victory when a California state court ruled that they are employees because of FedEx's "close to absolute actual control" over drivers.
In recent months, officials in Montana and New Jersey likewise determined that certain FedEx Ground drivers in those states are employees. FedEx is appealing all the judgments, and FedEx Ground Chief Executive Daniel J. Sullivan says he's confident the company will prevail.
The Internal Revenue Service is also investigating FedEx's driver classification, prompted by driver complaints, according to people familiar with the situation. The tax agency will examine whether FedEx has "pushed the envelope of control so far" that it's no longer in compliance with an earlier agreement under which its predecessor company was permitted to count drivers as independent contractors, according to one knowledgeable person. An IRS spokesman declined to comment. FedEx isn't aware of any IRS probe, Mr. Sullivan said.

 

[johnny]

It's only going to be a matter of time b4 those drivers do something to take on Fed-Ex.They are being abused just as much as UPS drivers for 1/2 the $$ and no bennies.Good Luck to them,I hope they beat them down.

 

[ironylife]

I hope fedex gets burned....they arent the kind of company that customers think they are! Something has to be going on with all the debt they have with their recent "purchases" but their profit is doing quite well. I hope they are the next scandel company!

 

[speeddemon]

AMEN

 

[rushfan]

I regularly talk to the green and purple fedex ground driver. He is hoping that something will give as far as the "contractor" item goes. He's tired of paying for all as the story says, and being at the mercy of fred ex. He told me that the other drivers feel the same way.

(Message edited by rushfan on January 08, 2005)

 

[proups]

Take all of their packages away from them through sales leads. Packages mean money to the FedEx drivers. If they start losing volume, they may turn to the Teamsters to help them keep their jobs.

But then, they would not be able to compete with us!

 

[ironylife]

tHEY HAVE A HARD ENOUGH TIME COMPETING NOW. One guy told me that they have to even buy their own dr bays....how crapy is that. something going to give eventually and the world of fedex is going to crumble, and ill be standing by, waving my brown flag...cheering and screaming GOODBYE!

 

[aviationwiz]

Independent Contractor's my a**.

No benefit's, and half the pay as UPS drivers, those guys are being abused way too much.

To see FedEx crumble like a cookie in milk would be great...

Why couldn't it have been FedEx instead of US Airways?

 

[michael]

Here is a question for anyone qualified to answer it. Why aren't the teamsters aggressively trying to unionize these drivers?

(Message edited by Michael on January 10, 2005)

 

[switchoff]

The fedex ground drivers are getting screwed is an understatement. The local guy in my area has gotten fined (if i recall correctly) $200 from his company for a rudeness complaint. He also got docked pay/fined for a misdelivery which led to a another complaint...and he actually hates the union. LOL

 

[hr_guy]

the fedex ground guy in my town has the entire town. he said he makes out like a bandit and doesn't mind the no bennies and having to pay for his fuel and all. He did tell me that he releases everything he gets, because if he has a send-again he re-attempts the package free of charge. I won't release a package in certain neighborhoods, particularly the "nicer" apartment complexes under most circumstances, but this guy just lets it fly.

If other drivers are like him it's only a matter of time before the customers start filing claims and shipping through other means.

If I see any other fedex ground drivers I'll have to ask them what they think.

 

[downtowner]

These guys have to cut all corners to make money.
For example: the driver on my route leaves his truck running with bulkhead door open, while delivering to suites in a 4 story building. I keep hoping someone will steal his truck.

 

[ok2bclever]

Michael,

Who says they are not.

Actually, if you think of the Teamsters as thugs you should check out Fred and Friends when he finds out a local Fedex center is talking with the Teamsters.

It is hard to get a majority secretly and a minority is just intimidated and/or fired.

While many Fedex drivers are dissatisfied they are not willing to put their job on the line, which they are doing if they publicly start talking about unionizing.

I helped my local try to do so in my area several years ago and ended up successfully unionizing two of the drivers.

Course that was cause I helped them get into UPS after they were fired by Fedex.

Tough Sell.

With Airborne, errr excuse me, DHL being partially Teamsters already we have a better chance there and are actively working with some of the DHL employees with much discretion currently.

Terminations are still a threat here as well.

(Message edited by Ok2bclever on January 11, 2005)

 

[ok2bclever]

Ummmm, I'd tell you more, but I would have to . . .

Well, you know.

(Message edited by Ok2bclever on January 11, 2005)

 

[quebec_driver]

DHL drivers in Quebec Canada are unionized and teamsters, They still get smile**ed by their bosses

 

[moneygreen]

fedex ground will take over the industry in due time. you can bet your brown bottom dollar on it!}}

 

[moneygreen]

to all in the brown cafe, don't be so GREEN with envy

 

[ud]

I think once FedEx is forced by the courts to make their ground guys hourly employees, it will take a chunk out of their profits or they will have to raise their rates. Watch out FedEx stockholders.

 

[afups]

A new class action lawsuit was filed in Massachusets by FEDEX "employees" today.
They claim they were wrongfully declared "independent contractors".

More trouble for FEDEX!

 

[ok2bclever]

mg, I assume the "green" theme is due to the nature of part of the ground color scheme?

I'm sorry, but I don't try to keep the various color schemes of the different "one" company companies of Fedex straight.

I know they use a slew of color schemes, but it just doesn't seem worth my time trying to keep them straight.

I just can't see a bunch of unhappy underpaid contractors ever doing UPS any permanent market share damage.

Here today, gone tomorrow.