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Federal Express Courier Age Discrimination

Two collective action lawsuits are now pending on behalf of older Federal Express (FedEx) couriers who are victims of age discrimination. The suits allege that the company pushes couriers over 40 years old - particularly those with more than ten years' service - to leave the company. Older employees complain that FedEx takes away good routes, sets unrealistic performance goals, and writes up older employees for trivial issues. More than 20 older employees have joined the lawsuits already. Both actions are set for trial this year. If you are a victim of this practice, now is the time to come forward.

Federal express discriminationSome say these tactics are designed to push out older employees in favor of younger workers who require less medical insurance, sick leave and worker compensation. Employment law attorneys acknowledge that it is illegal to discriminate on the basis of age or benefits eligibility.

Another reason FedEx may try to push older employees out the door is because many employees have been grandfathered into a traditional pension plan. When FedEx changed their pension system in 2003, it asked its employees whether they wanted to stay with their traditional pension plan or move to the new cash-balance plan "FedEx Portable Pension Account". 137,000 employees stayed with the check-for-life plan. FedEx has also implemented early retirement packages in hopes of saving the company millions of dollars each year.

Pension Plans and Age Discrimination

Traditional pension plans or defined benefit plans are figured by salary and years of service. The longer the term of service, the larger the benefit. At the end of employment, the employee will continue to receive monthly checks for life. According to some sources, the average retirement age for FedEx employees is 60 years old. Employers are moving away from these plans because the pay-out is costly and unpredictable.

On the other hand, cash-balance plans are funded based on a percentage of the employee's wages and the interest rate is pre-determined by the employer. Upon retirement, the employee will receive the benefit in a single lump sum cash payment. These types of plans have been scrutinised in the past for employment benefits cases and age-discrimination lawsuits.

Federal Express currently has over 250,000 employees worldwide and $29 billion in annual revenues. In the past, the Federal Express Corporation has been investigated for sexual harassment and racial discrimination charges, and allegations of avoiding workers compensation payments by employing contract workers.

FedEx Age Discrimination Articles

FedEx Announces 2008 Pension Freeze
FedEx is planning to freeze its traditionally-defined benefit plans, moving employees to an existing cash-balance plan. The FedEx freeze of its $11.5 billion plan is effective June 1, 2008.

Discrimination Doesn't Pay for FedEx
Linda H. worked as a FedEx courier for 20 years and got along well with everyone except the new manager. "He singled me out and kept picking on me until I was eventually fired," she says. But Linda stuck to her guns and was reinstated. And that's not all...

Lawsuits Claim FedEx Discriminates Based On Age
FedEx Age Discrimination
Another FedEx Courier Comes Forward

Fedex Age Discrimination in the News

Federal Express Age Discrimination Legal Help

If you or a loved one has suffered from discrimination as a Federal Express courier, you may qualify for damages or remedies that may be awarded in a possible collective action lawsuit. Please click the link below to submit your complaint to a lawyer for a free case evaluation.


Last updated on Mar-25-14

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