Fedex Overtime Lawsuit Attorney

Why Were Fedex Ground Drivers Classified as Such? Follow the Competition Chase

The controversy surrounding Fedex Ground and its decision to classify its drivers as independent contractors as opposed to employees has drawn a huge amount of attention not only in the United States but around the world as well, as Fedex Corp. has grown into a company that's recognized all over the globe. Even though the company is under fire for its decision to classify their drivers as contractors, it could also be argued that one of the reasons that Fedex has grown could be tied to this decision in the first place.

Below is a brief summary of where Fedex was and how they climbed the ladder in the ultra-competitive market of shipping and delivery. The years where media coverage seems to have spiked also seem to coincide with the years that Fedex made significant gains. We'll focus on each year below.

2002

Given the Fedex Corp. was founded and traditionally seen as an air shipping and delivery company, it was seen as quite a risk for them to take on the likes of UPS when it got into ground shipping. From a revenue standpoint, it turned out to be a good decision, and one that was featured in an article published by Business Week. The article directly mentioned Fedex Ground as a reason for Fedex's resurgence as a big player in the shipping market. However, it was also stated at that time that UPS still controlled 80% of all US ground shipments.

2003

What a difference a year can make. CNN Money featured Fedex once again, and it's interesting to compare the numbers reported by CNN to those shared by Business Week just one year earlier. By the time this article was written, Fedex had helped reduce UPS's market share of ground shipping to 71%, and Fedex's share had risen to 14% within the same timeframe. Once again, the low cost of having ground delivery drivers classified as independent contractors was directly attributed to Fedex Ground's growth both in revenue and market share.

Overall

Although no one who was not in certain Fedex Ground boardrooms during this time may ever know the reasons for Fedex Ground's decision to classify their drivers as independent contractors as opposed to employees, it's easy to argue that the decision was driven by competition and revenue, and not because Fedex wanted to avoid paying for benefits. However, these issues all ultimately intertwine, and that still means that if you feel you've been wronged by this classification, you need to contact the Fedex overtime attorneys at The Firm to schedule an initial consultation.