For some time now in the US and the UK courier companies have classified certain parts of their workforce as ‘independant sub contractors’. These independant sub contractors work almost exclusively for one company, have their own vehicle, wear the uniform of the contracting company and deliver to the standards of the contracting company.

In some instances they hire vans and equipment from the contracting company and that is deducted from their invoices. They are not paid a wage and they do not get holiday pay, they are most certainly not treated the same as employed drivers yet carry out the work as same as an employed driver would.

In the US there is a difference of opinion over the classification of drivers and the unions, and it relates back to how Fedex and UPS came into existence.

US Fedex have asked for help with regards to these drivers and the outcome could have big repercussions across the delivery market.

In lawsuits across the country, FedEx has been accused of misclassifying pickup and delivery drivers as independent contractors and of taking improper deductions from their pay while failing to pay overtime. Many of those cases are now consolidated and are being heard by a federal judge in Indiana.

Plaintiffs, including some represented by law firms in Batesville, Miss., and Memphis, maintain that what workers do, not what they’re called, should determine their classification.

“State and local governments in Ohio are being cheated out of hundreds of millions of dollars each year as a result of employee misclassification,” said Atty. Gen. Richard Cordray of Ohio in a separate statement. “We are committed to aggressively pursuing these misclassification cases to level the playing field for businesses that play by the rules and to protect Ohio’s workers.”

On another labor front, the House of Representatives passed a bill earlier this year that would subject FedEx Express workers not directly involved with the company’s aircraft to the jurisdiction of the National Labor Relations Act and its rules permitting labor union organizing at the local level. The Senate is expected to consider the issue by the end of this summer.

Source : Commercial Appeal

Another interesting viewpoint comes from a UPS employee who clearly thinks they have not had a bailout, and that what is going on is less than honest.

Disclaimer here. I work for UPS, so I’m not a disinterested party on one level. On another level this is about lobbying and politics. There’s a pretty nasty battle going on between these two companies. FedEx drivers are working under a law that makes its drivers airline employees. No other package delivery company has its drivers employed as airline employees. The actual bill before Congress is HR 915, which would re-classify FedEx drivers and they would be bound by National Labor Relations Act (NLRA) like all other package delivery drivers. FedEx drivers work under the Railway Labor Act (RLA).

FedEx at the beginning was primarily an airline delivering documents, which was fine until faxes and email became the primary means of document delivery. Putting FedEx drivers under the NLRA law only effects the drivers. Their airline personnel would still work under Railway Labor Act. FedEx is fighting this primarily because they would have to recognize unions. The government has more regulations which UPS has submit to that FedEx doesn’t.

Source: The metaphysical Peregrine

The unions are trying to protect the drivers and the companies involved are protecting their interests, and if it’s not played out carefully a worldwide delivery company could be bought to it’s knees and then what would happen to all the drivers?

Sarah

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