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FedEx Will Abandon Contractor Model in Cali

Monday, October 1, 2007

fedex.gifThe Teamsters report:

The FedEx Corporation could pay between $26 million to $33 million in severance costs alone for abandoning its illegal contractor model in California, a change announced Thursday by company chief executive Fred Smith.

Smith said FedEx (NYSE: FDX) is offering special incentives to encourage single-route contractors to transform their operations into multiple route businesses or sell their routes to others. Information obtained by the Teamsters from FedEx drivers puts the incentives at $25,000 to $33,000 per contractor to leave their jobs at FedEx.

There are 1,055 such contractors as of March 2007, according to court filings.  FedEx Ground commonly puts its total contractor workforce nationwide at 14,000 to 15,000.

Hopefully we’ll be able to capitalize on this and start to fully unionize FedEx.  For more on FedEx and its union busting and anti-worker policies go to FedEx Watch.

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