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Union Cites Classification in FedEx Letter

The International Brotherhood of Teamsters urges FedEx Corp. shareholders to call for an independent chairman, citing the issue of classifying some drivers as independent contractors instead of employees.

September 3, 2009
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The International Brotherhood of Teamsters urged FedEx Corp. shareholders to call for an independent chairman, citing the issue of classifying some drivers as independent contractors instead of employees.

In its letter, the union said the current arrangement of founder Frederick Smith serving as CEO and chairman has led to a CEO-dominated board that approved of practices such as the classification of FedEx Ground drivers as independent contractors and not employees.

“The combined CEO/chair leadership structure has allowed Smith to exert a dominant influence over the board of directors that is best evidenced by FedEx’s decision to doggedly operate and defend an illicit and unsustainable business model built on the misclassification of FedEx Ground drivers,” according to the letter.

FedEx faces ongoing court battles over FedEx Ground’s classification of drivers as independent contractors. However, FedEx shareholders rejected a similar proposal by the union last year.

FedEx’s annual meeting is September 28.

—Staffing Industry Analysts

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