FedEx merging Ground and Express units, contractors to become staff

To cut costs and enhance its competitiveness, FedEx is consolidating its separate delivery companies into a single entity.

In a recent news release, the delivery giant announced that it will bring “FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies [excluding FedEx Freight] into Federal Express Corporation.”

We are excited to announce that we are moving forward as one FedEx team. Our new operating structure will provide greater flexibility, efficiency, and intelligence. Learn more: https://t.co/uM6Qk9cnKV pic.twitter.com/AELspSfYEF

— FedEx (@FedEx) April 5, 2023

“This organizational evolution reflects how we represent ourselves in the marketplace — focused on flexibility, efficiency, and intelligence,” CEO Raj Subramaniam said in the release.

“As one FedEx team, we are well positioned to execute on our mission to help customers compete and win with the world’s smartest logistics network.”

According to news outlets, including Reuters, FedEx plans to convert contractors into employees when it folds its contractor-based Ground delivery operations in Canada into its company-operated Express unit.

The company expects the combined delivery business to handle all deliveries as of June 2024.

According to LinkedIn, FedEx employs a global workforce of more than 254,000 people. Over 4,300 workers are located in Canada.

SEE ALSO
• FedEx Layoffs and Severance Pay
• WestJet shutting down Sunwing Airlines, adding it to main operations
• Adidas lays off Canadian staff, folds operations into U.S.

I’m a contractor, what happens to my length of service if I become a FedEx employee?

If you were originally hired by FedEx as an independent contractor, and the company decides to make you a non-unionized employee following the merger, your years of service as a contractor shouldn’t go out the window.

Before signing an employment contract from the delivery giant, have it reviewed by experienced employment lawyer at Samfiru Tumarkin LLP. The company can’t force you to accept it immediately or a few days after it was provided to you.

It’s not uncommon for employers in Canada to add a clause that allows them to ignore an individual’s previous years of service.

We can review the agreement and make sure that key components, such as your seniority, are properly protected.

LEARN MORE
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Don’t think you should be classified as a contractor?

In some cases, companies intentionally misclassify employees as independent contractors to get out of acknowledging certain employment rights, including minimum wage, vacation pay, overtime pay, and severance, when an individual is fired without cause.

WATCH: Employment lawyer Lior Samfiru explains the difference between an employee and an independent contractor on an episode of the Employment Law Show.

Employers in Canada can’t avoid the issue by having non-unionized workers sign an employment contract that claims they are an independent contractor rather than an employee.

Our legal system provides guidelines for determining whether someone is a contractor or employee. To find out what you are, use our firm’s Pocket Employment Lawyer.

If you are a non-unionized employee who has been misclassified as an independent contractor, contact Samfiru Tumarkin LLP immediately.

ADDITIONAL RESOURCES
• Employment Law Show: Employees vs independent contractors
• Employment Law Show: Rights for independent contractors

Do independent contractors owe staff severance after their contract with FedEx ends?

Since FedEx is planning on moving away from a contractor-based business model in a year, companies contracted by the delivery giant are able to give staff up to 12 months of working notice.

The longer the working notice period, the less severance pay non-unionized workers are owed when the employment relationship ends.

Some employees working for companies contracted by FedEx might not be entitled to any compensation once the one-year notice period ends.

LISTEN: Employment lawyer Lior Samfiru explains the rights a courier has as FedEx merges its delivery companies on an episode of the Employment Law Show.

However, severance for non-unionized workers in Canada can be as much as 24 months’ pay. It’s calculated using a variety of factors, including:

• Age
• Length of service
• Position at the company
• Ability to find work

To figure out how much compensation you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If you are still owed severance pay after the working notice period ends, and your employer refuses to provide you with the compensation that you are legally entitled to, you have been wrongfully dismissed and should take legal action.

We regularly resolve wrongful dismissal claims and can help you secure the severance pay you deserve.

SEE ALSO
• Severance pay for provincially regulated employees
• Rights to severance for federally regulated employees
• Severance pay in a recession

FedEx might owe you severance

In some cases, FedEx works very closely with the companies it has contracted.

If the delivery giant has a level of direct control over employees at a contracted business and sufficiently integrated them into its operations, then FedEx could be considered to be the “true employer”.

In the event that you lose your job before or after your employer’s contract with FedEx ends, you might be able to take legal action against the company as well as FedEx.

SEE ALSO
• Employment Law Show: Things to never do before seeking legal counsel
• Employment Law Show: Situations that trigger legal disputes

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, assess your legal options, and ensure that you receive the compensation you deserve.