FedEx faces US racketeering lawsuit by former delivery contractor

[BumRushDaShow]

Source: Reuters

December 8, 2023 11:38 AM EST


LOS ANGELES, Dec 8 (Reuters) - A company that FedEx once contracted to deliver packages on the California-Oregon border has sued the shipper, alleging it engages in a systemic pattern of illegal and wrongful business practices that violate U.S. anti-racketeering law.

The lawsuit filed Nov. 14 in a California federal court by PYNQ Logistics Services, which has not been previously reported, seeks a court determination that PYNQ's relationship with FedEx Ground is that of an employee rather than a contractor. PYNQ also reserved the right to pursue the case as a class action.

If successful, the case could threaten the promised cost-savings from a restructuring through which FedEx (FDX.N) has been shifting significant package volume from its employee-staffed Express unit to its Ground unit that relies on about 6,000 contractors to handle delivery and transportation services.

The case appears to be the first where a former FedEx Ground contractor has sued the global delivery giant under the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO), said attorney Jeffrey Possinger, who represents the plaintiff.

Read more: https://www.reuters.com/legal/fedex-faces-us-racketeering-lawsuit-by-former-delivery-contractor-2023-12-08/

[TheFarseer]

1. FedEx is the worst to deal with

They wrongly charged my work about $45. We called and called and every time the customer service person said they would remove the charge. They never removed it. We just kept getting increasingly threatening letters. We had collection people calling us. After a year, we just gave up and paid it.

Also, they charge a late fee after only 15 days! It’s nearly impossible for us to get a check out in 15 days! But they are the only carrier that will ship a certain thing so unfortunately we are forced to deal with them. Very frustrating to work with though!

[LittleGirl]

2. We had to use Fed x once

To ship our car title from CA to Switzerland. It was over 100 bucks overnight and took about 36 hours for delivery.

We used the Swiss post and US post for the return overnight and it got lost for 3 weeks. Nobody on either side would take responsibility or tell us where it was. We paid 1/3 of Fed x but we lost 3 weeks on one packet. The tracking just got Lost!

I hate them both actually.

[Wonder Why]

3. Slimy tactics that big companies have been using for years. Dump employees and contract out everything.

Hewlett Packard did that in the '90s. They started with the low paying jobs, contracting out security, cleaning and service employees then working their way up to "outsource" their production. The contractors, of course, paid much less to their employees with far few benefits. Who cares that so many people ended up in poor paying jobs, unemployment, bankruptcy, poor working conditions and shorter lifetimes? The executives paid themselves big bonuses and didn't have to distribute as much in profit sharing.
Loved them when I first started there. Hated them when I retired. Got out as soon as I could.