SOUTH BEND, Ind. — About 150 FedEx owner-operators in this state have taken the courier to court in an effort to be recognized as full-time employees.

Some experts say that if the court rules in the drivers’ favor, the entire industry in the U.S. is in for a staffing earthquake. The drivers are stating that they should be paid as full-time time employees, with benefits.

FedEx drivers in 29 other states have also filed similar suits. The federal court hearing the case will decide later this month whether or not to consolidate the claims into one class-action lawsuit.

If the court rules against FedEx, the cost could be staggering to the industry, particularly if the company is forced to buy the owner-operators’ trucks. Cost estimates of $630 million and more are being bandied about in the press.
FedEx has used its owner-op business model to give ground-service giant UPS a run for its money.

Here in Canada, there is already precedent-setting case law that has deemed independent owner-ops de-facto employees of trucking companies. In cases involving fleets like Mackie Moving Systems and Verspeeten Cartage, courts have ruled that unions are entitled to collectively bargain for owner-ops. In these cases, the judges found that the carrier exercised enough control over the owner-ops, that they could be considered employees. (click on the Related Stories links below for past coverage).

At the Port of Vancouver, independent haulers are paid union-type rates and receive other such benefits — as mandate by the federal government in an attempt to avoid further labor disruptions there.

In the past decade, FedEx has commandeered 19 percent of the ground delivery market while UPS control of the market has slipped from 82 percent to 70 percent.

With its business model built around the owner-op concept, it’s unlikely that FedEx will give in without a Hurculean fight.