Partner Deena R. Merlen Interviewed on FedEx Express Contracting Move

On February 7, FedEx announced that FedEx Express, its operating company that promises “day-definite” deliveries, would start outsourcing some of its home deliveries to FedEx Ground. The Memphis-based publication The Commercial Appeal picked up the story, describing that protection of employees of the two operating arms falls under two different labor acts. FedEx Express employees are covered by the Railway Labor Act (RLA), which has a higher bar for union organizing, while FedEx Ground employees fall under the National Labor Relations Act (NLRA) and a much lower bar for organization.

The company’s announcement has many in the labor law community and delivery industry, including FedEx’s primary competitor UPS, wondering if the company’s move will necessitate a reclassification of its Express employees under the RLA. FedEx argues that integrating the two delivery systems is simply business innovation and that the RLA protections are still necessary to keep timely deliveries for their Express customers.

However, as RPJ employment and labor attorney Deena R. Merlen told The Commerical Appeal in her Friday interview, by handing off deliveries to FedEx Ground employees, the company’s case to keep it from being reclassified is weakened. “Not that I have a crystal ball, but it will be very difficult not to reclassify FedEx if it is going to once again get caught up in all kinds of litigation,” she said.

Read the full article: “Will FedEx Express linking with Ground make union organizing easier for employees?” 

Congrats, Deena, on the interview and your labor wisdom in the public press!