Complaint Against STG Logistics Sets Stage for Much-Needed Change in Precedent

(LOS ANGELES) – Teamsters laud the National Labor Relations Board (NLRB) Region 21 for issuing a complaint against STG Logistics (dba XPO Logistics) that agrees with the Teamsters’ allegations that the company committed unfair labor practices (ULPs) when it misclassified employee drivers as independent contractors. The drivers work at the Ports of Los Angeles/Long Beach and the Port of San Diego.

“We commend NLRB Region 21 for doing the right thing and sending a very clear message to every employer in America — if you try to deny your workforce their federal rights, your actions will catch up with you,” said Teamsters General President Sean M. O’Brien. “The days of Big Business treating labor law like a list of suggestions must end and never return.”

The complaint comes after an extended legal fight and dozens of egregious ULPs committed by STG/XPO. The Teamsters have repeatedly proved the drivers’ employment status before NLRB Region 21 and administrative law judges.

The complaint could lead to a ruling that would overturn precedent set in Velox Express, Inc. in 2019, in which the Trump-era NLRB asserted that misclassifying a worker as an independent contractor — thereby denying them organizing and collective bargaining rights — does not in and of itself constitute an act of unlawful union-busting under the NLRA.

In addition to overturning Velox Express, Inc., the complaint against STG/XPO could also lead to precedent whereby employers found guilty are ordered not only to reclassify and treat aggrieved workers as employees, but also to pay workers for the consequential harm of misclassification, including lost wages, deductions, and other damages suffered.

“STG/XPO is a repeat offender and one of the most sinister players in the entire supply chain when it comes to exploiting workers through misclassification, so it’s fitting that such a blockbuster complaint would come down against them,” said Eric Tate, Secretary-Treasurer of Teamsters Local 848. “This has been a long time coming.”

“We hope this is the beginning of the end of an exploitative and brazenly unlawful practice, which never should have been allowed to become so widespread in our economy to begin with,” said Jaime Vasquez, Secretary-Treasurer of Teamsters Local 542. “Illegal misclassification is not just in logistics and trucking, but also in tech, construction, entertainment, and a wide range of other occupations. Companies need to respect the law. The American worker can’t afford to move backwards.”

The trial at the NLRB is set for December 11, 2023. The case is STG Cartage, Inc. dba XPO Logistics, N.L.R.B., Case 21-CA-289133.

Founded in 1903, the International Brotherhood of Teamsters represents 1.2 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org to learn more. Follow us on Twitter @Teamsters and “like” us on Facebook at Facebook.com/teamsters.

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