FedEx Corporation (FDX)’s New Jersey Workers Say No to Teamsters Union

It was a sigh of relief for FedEx Corporation (NYSE:FDX) when its New Jersey facility workers voted against Teamsters’ union membership on Friday. It was a huge setback for Teamsters Union considering they already had FedEx Freight pilots joining their team in September 2014.

FedEx welcomed the move of its drivers to vote against the union at the Cinnaminson facility in New Jersey. The company added, “FedEx Freight respects each employee’s right to make his or her own decision, but we prefer to work directly with employees without involving a union.” This is huge setback for the union that has been promising company intimidation before the voting.


At the same time, analysts are considering the lack of union representation at FedEx Corporation (NYSE:FDX) as its primary strength against United Parcel Service, Inc. (NYSE:UPS). The scheduled voting on October 10 went against the union’s expectations. Earlier, Stan Hennessy, President of Delta, British Columbia-based Local 31, said, “We are tremendously excited to welcome the FedEx Freight workers into the Teamsters, and we hope this is the first of many victories at this company.”

Further, Jim Hoffa, General President of Teamsters, said, “We are seeing workers at FedEx Freight across North America saying they want their wages, benefits and working conditions negotiated in a legally binding union contract. They are turning to the Teamsters for help and we will be there for them.” However, the voting went against the union eliminating any such claims made by its representatives.

Earlier, FedEx Corporation (NYSE:FDX) drivers won a legal ruling at the Kansas Top Court, which called them employees in its ruling and it was an important victory for the package company drivers considering that the ruling would allow them to receive overtime charges and associated expenses. The court added that the company could not save itself from paying associated costs with its custom driver’s agreement.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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