FedEx offering employee buyouts to save up to $275M in 2020

$275M in 2020

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FedEx Express

COURTESY OF FEDEX CORP.

By Jason Bolton 
Data Editor, Memphis Business Journal

Jan 18, 2019, 4:51pm CST 
Updated Jan 22, 2019, 8:36am EST

FedEx is trimming its employee roster with buyouts to reduce costs.

In a filing with the Securities & Exchange Commission late Jan. 18, FedEx Corp. announced it has begun offering eligible U.S.-based employees voluntary cash buyouts.

FedEx expects costs related to the voluntary buyouts to range from $450 million to $575 million in pre-tax expenditures, according to the filing. The costs will depend on the acceptance rates by employees.

FedEx expects the costs to mostly occur during the fourth quarter of fiscal 2019. The company expects savings of $225 million to $275 million, on an annualized basis, beginning in fiscal 2020.

Voluntary severance payments would be calculated based on four weeks of gross base salary for each year of continuous service with FedEx, resulting in a maximum of two years-worth of pay.

NLRB Returns to Long-Standing Independent-Contractor Standard

NLRB Returns to Long-Standing Independent-Contractor Standard

Washington, DC—Today, the National Labor Relations Board returned to its long-standing independent-contractor standard, reaffirming the Board’s adherence to the traditional common-law test.  In doing so, the Board clarified the role entrepreneurial opportunity plays in its determination of independent-contractor status, as the D.C. Circuit has recognized.

The case, SuperShuttle DFW, Inc., involved shuttle-van-driver franchisees of SuperShuttle at Dallas-Fort Worth Airport.   Applying its clarified standard, the Board concluded that the franchisees are not statutory employees under the National Labor Relations Act (the Act), but rather independent contractors excluded from the Act’s coverage. 

The Board found that the franchisees’ leasing or ownership of their work vans, their method of compensation, and their nearly unfettered control over their daily work schedules and working conditions provided the franchisees with significant entrepreneurial opportunity for economic gain.  These factors, along with the absence of supervision and the parties’ understanding that the franchisees are independent contractors, resulted in the Board’s finding that the franchisees are not employees under the Act.  The decision affirms the Acting Regional Director’s finding that the franchisees are independent contractors.

Today’s decision overrules FedEx Home Delivery, a 2014 NLRB decision that modified the applicable test for determining independent-contractor status by severely limiting the significance of a worker’s entrepreneurial opportunity for economic gain.

Chairman John F. Ring was joined by Members Marvin E. Kaplan and William J. Emanuel in the majority opinion.  Member Lauren McFerran dissented. 

Couple Sues over Seriously Injuries from FedEx Truck Accident

A couple from Pennsylvania opted to jointly file legal action after suffering a FedEx truck accident, claiming the driver acted negligently and the company did not properly assess him as an unfit driver.

The couple alleges the FedEx truck accidentoccurred due to the negligent actions of the driver and could have been avoided if he had followed proper driving safety regulations.

Plaintiff couple Terri S. and Gregory S. filed this truck accident lawsuit against FedEx Express and driver Elijah Kellom, alleging the driver had acted recklessly and caused the FedEx truck accident by trying to change directions on the road.

According to the truck accident lawsuit, Kellom had been operating a full sized Mercedes Benz cargo van and had exited a driveway at an unreasonably high speed that allegedly caused the collision.

Overview of FedEx Truck Accident

The couple claims Kellom entered the road’s westbound traffic lane to travel south on Main Street and then crossed into the center lane of East Main street, which is when the FedEx truck accident occurred.

According to the truck accident lawsuit, Terri had been driving a 2007 Chevrolet Impala northbound on the 700 block of East Main Street with her husband riding in the passenger seat.

Terri and Gregory say they were surprised by Kellom’s actions and could not reasonably respond when he suddenly crossed into their lane and collided with their vehicle.

The truck accident lawsuit stated the FedEx truck accident occurred on June 13, 2017 at approximately 3:50 p.m., which caused Terri to suffer multiple serious injuries including but not limited to:

• Contusions, abrasions, and lacerations across body
• Closed head injury
• Head laceration
• Bilateral knee injuries
• Lumbar injuries
• Dental injuries
• Cardiac injuries including the mitral valve

According to the truck accident lawsuit, Terri has had to undergo multiple surgical operations for this injuries and has even had to have extensive dental work done to fix the damage to her teeth.

In addition, the couple says Terri has had to undergo physical therapy and long hospitalization periods and has had to contend with a decreased quality of life due to her new disabilities.

Terri and Gregory state that their lives have not been the same since the FedEx truck accident, which they maintain happened because of negligent conduct by FedEx’s driver.

The FedEx truck accident lawsuit alleges Kellom failed to properly take in his surroundings as he made that turn in that driveway, drove too fast, and failed to look out for other drivers.

The couple argues that as the operator of a large truck, Kellom was responsible for conducting his driving in a safe manner and should have been looking out for other vehicles considering the amount of room the truck took up on the street.

Furthermore, the FedEx truck accident lawsuit alleges Kellom was not fit to operate or drive the truck and Fedex failed to take this into account when assigning him as a truck driver.

There are approximately 500,000 truck accidents per year in the United States, with 5,000 of these incidents being fatal and over 100,000 of them involving serious injuries. Terri and Gregory are seeking compensation for all their physical injuries and medical bills, along with any other relevant damages.

This FedEx Truck Accident Lawsuit is Case No. 1:18-372, in the U.S. District Court of Western Pennsylvania.