Independent means independent, judge in FedEx case rules

SOUTH BEND, Ind. — Just because a truck driver works pretty much full time for FedEx doesn’t mean he’s an employee.

That was the gist of a recent landmark Indiana Court ruling, and it struck a serious blow against the nation-wide efforts of unions trying to organize independent truck drivers.

FedEx was facing 28 class action suits attempting to force the courier to classify independent truckers as company employees.

Tuesday’s ruling struck down 20 of the 28.

Experts interpret the ruling as strong legal backing to FedEx Ground and its business model, which is largely built on the use of about 15,000 independent contractors.

According to media reports, U.S. District Judge Robert Miller of Indiana ruled that there was no reasonable inference that FedEx retained the right to control the "methods and means of the drivers’ work on a class-wide basis."

Organized labor groups have been placing independent contractors under greater scrutiny arguing many companies are avoiding work rules and taxes by using contractors who do all the work of full employees.

According to media reports, the judge issued split rulings on several of the eight remaining cases, dismissing some claims within several of the suits while allowing others to move forward.

He wrote in several of the cases that although drivers were dedicated solely to FedEx business, the company did not exert the kind of control over their employment that would make them FedEx employees.

The decision dismisses most of class-action cases claiming drivers are misclassified. "FedEx provides work to and pays contractor-drivers to provide the specific result of timely and safely delivered packages to FedEx customers.

In a separate case in Kansas, the same judge wrote, drivers "have the ability to hire helpers and replacement drivers; they are responsible for acquiring a vehicle and can use the vehicle for other commercial purposes; they can sell their routes to other qualified drivers, and FedEx doesn’t have the right to terminate contracts at will."

The case first saw light in 2001 when some 160 drivers filed suit in 29 states. More than 80 percent of the original plaintiffs no longer work for FedEx.

Backed by FedEx’s rival UPS –a union outfit — the Teamsters have also been lobbying Congress to change how the company is governed under federal law, making it easier to unionize. The union is also trying to get FedEx’s independent drivers to be recognized as company employees.

In an attempt to insulate itself from misclassification, FedEx sent its 12,000 independent contractor workforce a memo last May, detailing business standards they must comply with. 


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