Teamsters Hail IRS Decision to Fine FedEx $319 Million

 

 

    WASHINGTON, Dec. 21 /PRNewswire-USNewswire/ -- FedEx Corp. (NYSE: FDX)
was delivered a big lump of coal today by the Internal Revenue Service,
which slammed the company with a $319 million fine and penalties over its
illegal independent contractor model. The IRS determined that FedEx Ground
workers were indeed employees, a fact long asserted by the Teamsters Union.

    "What a great Christmas gift to FedEx Ground workers who have suffered
under FedEx's illegal independent contractor scam," said Teamsters General
President Jim Hoffa. "It's a fundamental fact that FedEx has been skirting
the law, and the Teamsters welcome the IRS decision."

    The news caps a difficult week for the anti-union company. On
Wednesday, the Massachusetts Attorney General cited FedEx Ground for
intentionally misclassifying pickup and delivery drivers as independent
contractors rather than employees. This follows a decision last month by
the California Supreme Court, which refused to review an appeals court
ruling that single route drivers in the state were misclassified. On
Thursday, FedEx publicly acknowledged that regulatory and legal challenges
on misclassification could hurt its stock price.

    "It's game over for FedEx's independent contractor scam," Hoffa said.

    Since the $319 million fine only covers 2002, FedEx could face
additional penalties totaling over a billion dollars after the IRS
completes its investigation into the company's illegal employment practices
that continue to this day.

    Founded in 1903, the International Brotherhood of Teamsters represents
1.4 million hardworking men and women in the United States, Canada and
Puerto Rico.