CEO: Fred Smith

Company address: FedEx Corporation: 942 South Shady Grove Road, Memphis, TN38120, US

"FedEx Corporation (FedEx) offers overnight courier services, freight services, logistics solutions and business support services. FedEx is the world’s largest express transportation company, delivering small packages throughout the US as well as to 220 countries worldwide. The company operates primarily in the US. FedEx is headquartered in Memphis, Tennessee and employs about 215,900 people. The company recorded revenues of $32,294 million during the fiscal year ended May 2006, an increase of 10% over 2005. The operating profit of the company was $2,471 million during fiscal year 2006, an increase of 71.6% over 2005. The net profit was $1,449 million in fiscal year 2006, an increase of 72.9% over 2005."

Source: FedEx Corporation Datamonitor Report, July 2006

Case study
From Teamsters’ President James P Hoffa’s introduction to www.fedexwatch.com

FedEx is…a major proponent of an alarming trend in today's job market: dishonestly classifying workers as "independent contractors." This allows employers to maintain absolute control over operations and shift costs and risks onto workers, while reaping all the benefits of their labor. The entrepreneurial spirit may sound appealing, but the benefits for corporations and resulting burdens for workers are undeniable.

FedEx Ground has 14,000 independent contractors that make its domestic, non-express package deliveries. These drivers receive no health care or retirement benefits. The drivers pay taxes for workers' compensation, unemployment insurance and Social Security, and they purchase fuel and maintain their own trucks, all out of their own pockets. Overtime pay and vacation days do not exist for these "independent contractors." Such is the price of FedEx's so-called entrepreneurial freedom.

FedEx claims a typical driver makes $50,000 to $55,000 a year. But as one ground driver pointed out, the fuel, maintenance and loans on his truck cut his salary to $20,000. When FedEx takes a free ride on the backs of its employees, it's no wonder it can afford to undercut union competitors like UPS. Teamster members at UPS have won medical care, pensions, and 401(k)s. All driving costs are covered by the company. And by the way, UPS remains so successful because it has a unionized workforce.

As exploited workers are wont to do, FedEx's ground drivers are fighting back. Drivers have sued the company to challenge their independent contractor status in more than 20 states. FedEx is already under court order to reclassify drivers in California, and has suffered similar defeats elsewhere.

Links

Visit the Teamsters' Fedex website for mechanics and related members >>

Join the ITF global delivery network and access the extranet >>