209 FedEx Ground Drivers to Receive Share of $11 Million Settlement

Contact: Galen Munroe,
(202) 624-6911

November 30, 2007



(Washington, D.C.) – Teamsters General President Jim Hoffa commended the California Supreme Court for denying FedEx Corp.’s (NYSE: FDX) final appeal of lower court rulings determining that FedEx Ground’s independent contractors are direct employees.

“Thanks to the California Supreme Court, FedEx is going to have to compensate these drivers for exploiting them for so many years under its bogus independent contractor model,” said Teamsters General President Jim Hoffa. “FedEx’s illegal model has been exposed and drivers across the country are standing up for their rights and proper compensation.”

In August, the California Court of Appeals upheld a lower court ruling that the drivers are employees and not independent contractors. FedEx, in an attempt to limit future liabilities, responded in California by firing the drivers who were affected by the court decisions.

The 209 workers will receive a share of more than $11 million in repayments for expenses related to gas and insurance directly related to the execution of their jobs.

In addition to the California case, 150 FedEx Ground workers in South Bend, Indiana, are also challenging the company classifying them as independent contractors. A federal judge certified the class-action lawsuit in October that claims the company denied the drivers benefits and proper wages.

“It’s game over for FedEx and its independent contractor scam,” Hoffa said.
International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.