Attorney General Andrew Cuomo’s office has sued FedEx, saying the delivery giant has cheated its drivers out of overtime and other benefits.
Cuomo’s lawsuit, filed Friday, alleges FedEx uses an “elaborately constructed scheme” to classify its drivers as independent contractors to circumvent New York labor law.
“By not recognizing its drivers as employees, FedEx has failed to provide its drivers the rights afforded to employees in this state, and has failed to comply with labor laws critical to protecting the rights of this state’s workers,” the lawsuit charges.
FedEx spokesman Maury Lane ripped the lawsuit as a “rock solid loser” and a “job-killer” if allowed to proceed. He called it a political move by Cuomo, who is the Democratic candidate for governor.
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(Source: NY Daily News)
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2 Responses
All this is a fight about unionizing FedEx. It’s an old fight Democrats have with FedEx. For background read:
http://online.wsj.com/article/SB10001424052748704133804575198232906957778.html
http://www.huffingtonpost.com/2010/05/14/fedex-lobbying-to-avoid-s_n_577209.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/15/AR2009071502498.html
or watch:
http://www.youtube.com/watch?v=PyAhx7P_Gfk
Andrew Cuomo’s just sticking up for his union buddies.
The conflict is actually a bit more complicated. The company, by keeping the drivers as independent contractors, saves on not having to pay benefits etc. even for some drivers who drive more than the Union drivers by spreading it out over the month. On the other hand, by not counting these drivers as full time, FEDEX keeps costs down.
I don’t always side with unions but on this one AG Cuomo is right.