Stephen, J. Cabot blog

June 1, 2006

TEAMSTERS AIM TO STALL FEDEX

Filed under: Employee Free Choice Act — Stephen Cabot @ 9:06 pm

FedEx drivers, in Worcester, Massachusetts, want to join the Teamsters union. FedEx, however, claims that the workers are independent contractors, who invest large sums purchasing their own trucks, and so cannot join a union.

Most trucking companies in the U. S. use independent contractors as drivers. It is the reason that trucking companies are able to flourish.

If the 60,000 FedEx drivers were to be declared employees and then they voted to join the Teamsters union, it would cost FedEx hundreds of millions of dollars for Social Security and Workers comp taxes as well as for the purchase 60,000 trucks.

Now the NLRB in Boston has ruled that the FedEx drivers are employees. FedEx is appealing the decision, stating that the drivers are independent business operators who not only buy their own trucks, but also have the opportunity to expand their routes, buy new routes, and hire their own employees.

If the NLRB rule prevails, it will become a precedent and drive many trucking companies out of business

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