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FedEx and Independent Contractors In July 2006, the International Brotherhood of Teamsters. Local Union 25, filed two petitions and held an election for a collective
FedEx and Independent Contractors In July 2006, the International Brotherhood of Teamsters. Local Union 25, filed two petitions and held an election for a collective bargaining representative at two FedEx locations. However, FedEx refused to bargain with the union. FedEx did not contest the vote count of the election: instead. FedEx refused to collectively bargain because it believed that its single-route drivers were not employees" but rather, "independent contractors, and the rules of collective bargaining in this situation apply only to employees. However, the National Labor Relations Board concluded that FedEx committed an unfair labor practice by refusing to bargain with the union certified as the collective bargnining representative of the drivers. FedEx sought judicial review of the decision of the board, and the board cross-applied for enforcement of its order requiring that the company bargain. 1. Do you agree with the National Labor Relations Board's ruling that FedEx engaged in an unfair labor practice? Why? 2. What duties and rights would the FedEx drivers have if they were considered employees? How would their duties and rights differ if the drivers were considered independent contractors of the company? The Wrap Up at the end of the chapter will answer these questions. One of the most important relationships in the business world is the agency relationship, in which the employee may be an Page 774 agent of the employer and have the ability to bind that employer legally. The use of agents and independent contractors allows corporations to enter into contracts and conduct business in multiple locations simultaneously. This chapter explores the nature and creation of the agency relationship, as well as the legal obligations of the parties in such a relationship
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