Wall Street Journal Examines Lack of Health Benefits for FedEx Contractor Drivers
The Wall Street Journal on Friday examined a legal fight between FedEx Ground, a division of FedEx, and independent-contractor drivers who allege that "they're essentially employees of FedEx, with all of the risks and none of the benefits, such as health insurance and a retirement plan." FedEx has about 15,000 contractor drivers and 60,000 employee drivers. Last July, FedEx Ground contractor drivers in California won a class-action lawsuit against the company. In the case, a court ruled that the contractor drivers are considered employees because FedEx Ground has "close to absolute control" over them. In recent months, FedEx Ground contractor drivers have won similar lawsuits in Montana and New Jersey. FedEx Ground CEO Daniel Sullivan predicted that FedEx would win appeals in all three cases. He added that a "very small number" of contractor drivers were unsatisfied and that 99% "would want to hang" him if he reclassified them as employees (Langley, Wall Street Journal, 1/7).
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