FedEx Corporation agreed to pay $228 million settlement in order to resolve the class action lawsuit that was brought by FedEx Ground drivers in California. Drivers claimed that the company misclassified them as independent contractors instead of employees. They allege that doing so resulted in shorting FedEx driver wages and benefits. According to Friday’s ruling (6/12/15), allegations were correct. The $228 million settlement would be paid as a resolution for claims brought against FedEx by approximately 2,300 California FedEx truck drivers who were classified as independent contractors and claim they should have been classified as employees of the corporation. The tentative settlement amount will require the approval of a California federal
Yes, FedEx has a right to impose a reasonable grooming policy based on customer reactions to personnel appearance, but they must take into consideration Title VII of the Civil Rights Act of 1964, which explains what an ethical dress policy is for employers with up to 15 employees. Although FedEx has the right to impose a grooming policy, they must remember not to cross the line when it comes to religious beliefs as stated in Title VII of the Civil Rights Act.
FedEx has two major customers who consist of businesses and individual customers. These business customers have accounts with FedEx to arrive at their location to pick up packages daily or weekly. Two-thirds of FedEx’s business comes from these customers so FedEx curves their operations to satisfy this clientele. Since FedEx’s competition is trying to acquire some of this clientele they have begun to operate and market to this clientele more effectively. Individual customers are also in FedEx’s internal environment. These customers represent one-third of their business. With increased competition from competitors FedEx has marketed to this market substantially. They have created boxes that are prepaid for shipment as long as the contents fit into the box. This has effectively increased business amongst individual customers for FedEx.
In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People-Service-Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia-Pacific enabled FedEx to expand further. The acquisition of Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global competitiveness generated the need for "just-in-time" supply model, which was the advantage supported by FedEx advanced technologies.
I chose FedEx, formerly Federal Express, as the company that I will be reporting on this semester. FedEx’s presence in my text books is quite frequent as an example of entrepreneurship and I hope to learn more about the business brain of Frederick Smith, the founder, chairman, president and CEO FedEx. I have several family members employed by FedEx and I have always been impressed on how they treat their employees even though they are not unionized. As a global enterprise, FedEx embraces and reflects the diversity of the communities they serve. Their culture fosters an environment where a person 's performance matters. FedEx is consistently recognized for its progressive and innovative policies, programs, benefits, and stimulating working environment.
If clients began moving their business to the competitors, this would cause a loss in profitability to FedEx and thusly would not be considered a reasonable accommodation. Additionally, under the Title VII regulation, this would be considered a policy that is enforceable because FedEx could use the case of “Fountain v. Safeway Stores, Inc., which
Another former SpaceX tech sued the company for what is becoming apparent is best described as widespread labor violations. Allegations were made that the Hawthorne, California company denied overtime pay as well as mandatory meal breaks as outlined by California labor law. The latest suit is for $5 million.
After a process, the FedEx business would be cleared of charges. All of the drugs that FedEx was caught selling were legal drugs that could not cause major problems.They
FedEx is a very large and known company for their good benefits and incentives they give their employees each year. In the past few year, there has major changes in pay merit increase, vacation time and scheduled payment. In the past, we got vacation time based on the years of services, pay merit increase based on performance review scores. Even, the FedEx Trade Network was getting paid like salary based employees with a set salary twice a month. So, the change is now your vacation time must be accrued time and the pay merit scale was change based on performance review score and non-exempt employees get paid weekly verses twice a month. This process was demonstrate procedural justice due to the facts it happen across the board at FedEx
FedEx is a highly centralized organization, with decision-making for the firm centralized at the Memphis headquarters. While national branches of the company have some autonomy in hiring, head office controls hiring policy. Decision-making on large capital projects is also centralized, because the network structure of the company's distribution means that such decisions have global implications. As a result, FedEx has a heavily-centralized structure where very little power is delegated to local managers. Instead local managers are charged with operating the company's strategy efficiently and effectively.
FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)
The FedEx stock’s price range in last year was 101.95 – 155.31. Currently its stock’s price is $152.68.
These are their daily volumes for those services. FedEx has many service areas. They service over 220 countries, territories and every single address in the U.S. FedEx tends to make more than 6 million package tracking requests daily. This is an outstanding number for a company dealing with packaging and locator with tracking numbers. Their express facility has 1,057 stations, and 10 air hubs. While their ground services has 32 hubs and over 500 pickup/delivery terminals. Freight has approximately 355 service centers and nearly 2,000 office locations. Despite all their services FedEx has a mission. Their mission is to produce outstanding financial returns for their shareowners. However, all customer requirements will be met while providing high value logistics, transportation and related business through operating companies. According to FedEx website, “FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers” (About FedEx). Safety is their number one concerns and first considerations in all operations. However, all their corporate activities will be conducted according to the highest ethical and professional standards. FedEx values their people, service, innovation, integrity, responsibility, and most of all loyalty. This company strategy consists of three levels; compete collectively, operate independently, and manage collectively. These strategies will help the company accomplish their goals. Standing, as
Workers understand that companies, at times, need to take drastic actions. The real issue is whether they see the company balancing its immediate business interests against how those decisions will affect employees and the long term business sustainability.
FedEx was established on June 18, 1971, founded by Fredrick W. Smith, in Little Rock, AR. FedEx is a well known American corporation that brings courier global delivery service to its customers. Having such a wide range of portfolios, FedEx has been able to incorporate many different delivery systems for maximum customer satisfactory, with the help of e-commerce, and global delivery service it is no surprise that FedEx has consecutively been ranked amongst the most admired and trusted employers.
FedEx Corporation, situated in US, is one of the leading supply chain management solution providers in the world. With annual revenues as high as USD33 billion, the company offers incorporated business