In a ruling sure to upset many in Corporate America, the National Labor Relations Board (NLRB) in Boston has ruled that FedEx drivers are statutory employees, not independent contractors, and so the drivers can now hold secret-ballot, union-organizing elections.
In addition to having been assessed millions of dollars by the courts and government agencies over the past year regarding its employment practices, the company now faces the prospect of significantly increased labor and vehicle maintenance costs.
Throughout much of Corporate America, independent contractors have created opportunities for themselves and the corporations for which they provide services. It has been a mutually advantageous relationship. Drivers, in the case of FedEx and a wide variety of food companies, have enjoyed the benefits of affluent incomes based upon their own combintations of diligence and entrepreneurship. Companies have been able to maintain a competitive edge and so operate at maximum levels of productivity.
If the NLRB decision in Boston portends future relations between independent contractors and corporations, then both will suffer as will the U. S. economy.
