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….and FedEx feels some heat

------------------------------------

IRS bills it $319 mil for

independent contractors (?)

             Federal Express is fighting battles in various venues around the country over the status of its Fed Ex ground drivers, particularly the single route drivers.  The carrier claims they’re independent contractors;  the NLRB in one case, and now the Internal Revenue Service, say otherwise.  For years FedEx, unlike competitor UPS, has avoided unionization of its ground drivers, but this may be changing.

             An SEC filing last week disclosed that pursuant to an IRS audit of 2002 payrolls, FedEx misclassified thousands of drivers as independent contractors.  The Teamsters union, striving for many years to sign up the company’s drivers, claims that when the government completes its audits of the years following 2002, the company should owe hundreds of millions more in penalties.

  

12/24/07