UPS Teamster Magazine, Summer 2011 - International Brotherhood ...

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Misclassification ResolutionWHEREAS, statistical evidence hasproven that the practice of worker misclassificationhas skyrocketed over thelast 25 years at a rate of 7% increaseannually, negatively impacting workersand businesses which play by the rules,and both state and federal governmentsin that a handful of bad-acting employersreceive an unfair advantage overcompetitors. In fact, studies indicate upto 48% of all independent contractorsnationwide may be misclassified employees;andWHEREAS, workers who are misclassifiedas independent contactors arestripped of the basic human right toassociate with unions and basic workplaceprotections, including but not limitedto the National Labor Relations Act,the Fair Labor Standards Act, OSHA,and even the Americans with DisabilitiesAct. Additionally, misclassified workersare not protected under state workers’compensation systems, unemploymentinsurance, and disability benefits.Most egregiously, these workers arehighly unlikely to have any healthcareor retirement benefits due to misclassification;andWHEREAS, companies which play bythe rules and properly classify workers asemployees pay their fair share of workerrelated expenses and, often times, pay upto 25% more in these expenses due tocompetitors cheating the system andmisclassifying workers; andWHEREAS, worker misclassificationcosts federal, state and local governmentsbillions of dollars each year; andWHEREAS, the most notable bad-actingemployer is FedEx Ground, a subsidiary of Federal Express. Over thelast 15 years, the company deceitfullymisclassified more than 27,000 currentand former drivers throughout thecountry—who have filed a class-actionlawsuit against FedEx Ground—andhas thus far been investigated by morethan 40 states for this practice; andWHEREAS, in 2009 and 2010, a bipartisangroup of 20 state Attorneys Generalinvestigated the company’s egregiouspractice of misclassification. Mostnotably, three Attorneys General claimedthe practice to be a “serious injustice” todrivers in their respective states, and as aresult forced the company to change itsbusiness model throughout the countryin hopes of avoiding further scrutiny.Despite these changes, public officialsacross the country have remained determinedto reveal the company’s ongoingabuse of drivers; andWHEREAS, misclassification alsoextends beyond FedEx Ground intoother industries, most notably in theport trucking, bakery, taxi, and constructionindustries, among others. Evidenceclearly suggested that this practice continuesto extend throughout variousindustries, compromising approximately12 million workers nationwide.NOW, THEREFORE, BE ITRESOLVED, that this 28th Conventionof the International Brotherhood ofTeamsters calls for meaningful legislationto be pursued in states across the countrythat protects workers from beingmisclassified by employers. This legislationshould include the “ABC” test,which highlights the employer’s day-todaycontrol of workers in determining1 2 | upsTEAMSTER | SUMMER 2011 | www.teamster.org
FedEx Resolutionwhether those individuals should beemployees or independent contractors.Such legislation should also includenecessary financial and criminal penaltiesagainst bad-acting employers todeter them from misclassifying workers.Finally, misclassified workers shouldalso have a private right of action topursue their individual or collectiverecourse against these bad-actingemployers; andBE IT FURTHER RESOLVED, thatstates should be properly equippedto investigate and appropriately punishbad-acting employers, including ataskforce of necessary state agenciesto investigate instances of misclassificationas well as much-needed fundingfor these taskforces to have staffingfor thorough and efficient investigations;andBE IT FURTHER RESOLVED, thatstates should continue to educate businesses,workers, and the public of thedetrimental impact of worker misclassificationto ensure the integrity of thatstate’s tax code, protect workers’ rights,and maintain a competitive businessclimate; andBE IT FURTHER RESOLVED, that theTeamsters Union will remain vigilant inhighlighting FedEx Ground’s abuse ofworkers through misclassification underits new business model, known as the“Multi-Route Contractor” model.Under the new model, FedEx Groundclearly maintains day-to-day controlover all drivers and therefore continuesto improperly classify drivers; andFINALLY, BE IT FURTHERRESOLVED, that the Teamsters Unionwill team with public officials and alliesto highlight FedEx Ground’s newmodel, and ensure that FedEx Grounddrivers across the country will eventuallybe properly classified as employees ofthat company.WHEREAS,FedEx continues to hide behindlegal loopholes and misclassify employees tokeep workers from enjoying the same rightsas other similarly situated employees in theindustry; andWHEREAS, FedEx has gone so far as tothreaten the United States Congress in orderto keep all of its Express division employeesunder the Railway Labor Act, regardless ofwhether they ever touch an airplane; andWHEREAS, the National Labor RelationsBoard has found that FedEx misclassifies driversemployed by its Ground division as independentcontractors when they should betreated as employees; andWHEREAS, misclassification of employees as independent contractors and airlineemployees limits the ability of FedEx Express and Ground employees fromorganizing a union; andWHEREAS, misclassifying employees under the wrong labor and employmentlaws adversely affects bargaining with other employers in the same industrywhere Teamsters are employed; andWHEREAS, Attorneys General from more than 20 states are currently, or haverecently, engaged in investigations of FedEx for misclassifying Ground drivers asindependent contractors, which costs the states millions of dollars in lost taxesand revenue; andWHEREAS, these investigations are resulting in multi-million dollar settlementsbetween the states and FedEx; andWHEREAS, FedEx employees in all sectors of the company, including FedExFreight, have contacted the Teamsters asking for assistance in fighting for betterwages and working conditions; andWHEREAS, Teamster local unions, Joint Councils and the International Unionare prepared and willing to work together to fight with our FedEx brothers andsisters;NOW, THEREFORE, BE IT RESOLVED, that the Teamsters Union will continueto fight for change in the laws governing FedEx Express so that there is a levelplaying field in the industry; andBE IT FURTHER RESOLVED, that the Teamsters Union will continue to workwith Federal and State Governments to ensure that FedEx Ground drivers areproperly classified as employees, not independent contractors; andBE IT FURTHER RESOLVED, that the Teamsters Union will assist ourFedEx Freight brothers and sisters in organizing and achieving their goal ofa union contract.www.teamster.org | SUMMER 2011 | upsTEAMSTER | 13
Page 4 and 5: NEWS SUMMER 2011GLOBAL DELIVERYUnio
Page 6 and 7: NEWS SUMMER 2011UPS Teamstersto Rec
Page 8 and 9: UPS Day of ActionTeamsters Protest
Page 10 and 11: As he recounted at the Convention,H
Page 12 and 13: Organizing FedExDelegates and Guest
Page 16 and 17: Montana AttorneyGeneral AddressesCo
Page 18 and 19: Right-to-Work (For Less) Resolution
Page 20 and 21: VISION SOLID1 8 | upsTEAMSTER | SUM
Page 22 and 23: Cross-BorderTruckingUPS Teamsters L
Page 24 and 25: Speeches Given by UPS and UPS Freig
Page 26 and 27: We Want to Hear from YouThe UPS Tea

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