House Provision Could Cost FedEx Millions, Stall Deliveries
By Paul Bedard, Washington Whispers
Federal Express is preparing to launch a multimillion dollar public-affairs campaign to derail House-passed legislation that would put the airline-based freight company under labor rules governing United Parcel Service, FedEx's trucking-based competitor. Worried that its costs could surge and overnight deliveries could be stalled by wildcat strikes if the changes are put into place, FedEx on Tuesday is expected to lay out a multimedia campaign using the Internet, TV, and paid advertising.
At issue is a provision in the Federal Aviation Administration reauthorization bill that would make it easier for FedEx drivers to be organized by the Teamsters. The House OK'd the bill largely on party lines. Its fate in the Senate is in doubt. In the past, FedEx has killed the provision that would remove the company's drivers from the Railway Labor Act's jurisdiction, which requires companywide labor-organizing votes, and put them under the National Labor Relations Act, which lets unions organize on a location-by-location basis. FedEx argues that the RLA is more appropriate because the company is jet based, and Congress in the past has worried about letting strikes impact aviation-based commerce—especially critical today when internationally traded products and medical supplies and even body parts travel on overnight flights.
FedEx is less than half the size of UPS and delivers much of its goods by air. Much of UPS's goods go out by truck. FedEx has called the legislation a bailout for the larger company.
UPS, however, argues that it's only fair for both companies to operate under the same rules. And the Teamsters, who have long tried to organize FedEx drivers, agree. FedEx retorts that its workers are happy and don't want union intervention.
The campaign to stop the legislation from winning Senate approval will not target just wavering lawmakers. It's to be national in scope to also target customers and explain the difference in how each company is run. Unclear is whether it will also pick up on some FedEx charges that the provision is a bone to UPS and labor unions by Democrats in Congress. Also unclear is the impact of the company's threat to cancel its order for 30 Boeing 777 freighters if the Senate OK's the legislation.
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Reader Comments
UPS doesn't want "level playing field"
First, to the most recent poster - UPS does not have "just as many, if not more aircraft than FedEx". Get your facts straight or the rest of your post is meaningless. FedEx is the 2nd largest airline in the world (formally first until the NWA/Delta merger). With UPS making billions more than FedEx, they can't be taken seriously when they say that they "want a level playing field". UPS and the Teamsters do not join forces to help each other, but only for their own selfish reasons. They are pooling their resources for their own agendas. UPS doesn't want to compete with FedEx, they want to bury them. A "level playing field" would require FedEx to be unionized nationally, like UPS. This bill would cause FedEx to unionize locally and cause massive disruptions (playing right in to UPS's hands). FedEx would constantly be negotiating with "locals" across the country. Customers, afraid that their packages would become "stuck" in the system if a specific area went on strike, would be afraid to tender those packages to FedEx.... Win-UPS! The Teamsters, who's leaders become rich while brainwashing their followers in to believing that they actually care about them, are licking their chops at the prospect of tens of thousands more dues paying members. Remember, unions are socialist organizations that want nothing more than to tear down the 200 years of capitalism that has made this country great. UPS and FedEx should both be governed under a new TLA (Transportation Labor Act) that would protect the country from any disruption in the transportation of goods and services.
FedEx/UPS
If people think that FedEx should remain under the RLA then I suggest making the same rules apply to UPS. UPS has just as many, if not more aircraft than FedEx. What ever rules they fall under I think it should be the same for both companys.
Fed Ex Employees
After reading all the comments posted it appears that most of the people that disagree with Fed Ex's position are Fed Ex employees.So if their employees dont buy the propaganda that Fed Ex is putting out about UPS then why should anyone else even listen. Its apparent that Fed Ex is taking from employees and spending the money to black mail congress.
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