Teamsters want to oust Smith as FedEx chairman
The International Brotherhood of Teamsters, which is trying to organize workers at FedEx, is trying to replace the company’s founder as chairman of the company.
The union has sent a letter to shareholders asking them to support a proposal at the company’s annual meeting on Sept. 29 that would prevent Fred Smith from holding the dual offices of chairman and chief executive.
Smith holding both posts has resulted in a “CEO-dominated board incapable of providing the rigorous, independent oversight of management,” the union said.
It also complained about the unit whose workers they are trying to organize, FedEx Ground, saying its business model relies on the “misclassification of employee drivers as independent contractors.”
That “has allowed FedEx to evade expenses like payroll taxes, overtime pay and benefits. Numerous state courts and government agencies are now finding that FedEx Ground’s contractor model is a sham and are looking to collect the money workers and states have been denied,” the Teamsters charged.
