FedEx to Fight UPS Support of Labor Bill

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Tue, Jun 9 - 2:58 am EDT | 9 years ago by
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FedEx is preparing a new marketing campaign that launches Tuesday against federal legislation that could help FedEx employees more easily join a union. And FedEx claims that UPS is a driving force behind the bill that changes which labor act FedEx must operate under.

The bill in question would move FedEx Express from under the Railway Labor Act and instead put it under jurisdiction of the National Labor Relations Act. The Railway Labor Act was put in place to stop possible service interruptions in railway delivery of goods. It was later expanded to include airlines and that’s what FedEx started under in the 70s.

FedEx Fights New Legislation

In this new multimillion-dollar campaign, FedEx will refer to the legislation as a “Brown” bailout, since unionizing could increase FedEx’s expenses and therefore giving UPS an edge in lowering the pricing gap between the two companies’ services. Right now, FedEx Express employees would have to unionize nationwide. But under the more union-friendly NLRA, FedEx employees can unionize in separate locations instead of needing a national election.

FedEx claims that FedEx Express is best classified under the RLA:

Since the company’s founding in 1971, FedEx Express has remained under the jurisdiction of the RLA. We firmly believe that is the proper classification for our company. Unlike our competition, we operate an integrated air/ground network and handle air shipments separately in that network. RLA jurisdiction gives us the best opportunity to deliver reliable, uninterrupted service to customers. It is that superior service that has allowed us to grow in spite of the best efforts of a larger, more profitable competitor — UPS. Their current lobbying campaign, working hand-in-hand with the Teamsters, is another attempt by UPS to gain a competitive advantage that they have been unable to gain through their service performance.

But because FedEx has threatened to cancel some plane purchases if the bill passes, the Teamsters feel that FedEx is trying to “blackmail Congress” to keep the bill from passing.

The marketing campaign launches Tuesday and includes a web site — — and spots on radio and television.

image: Zuma Press

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  • FedEx Employee

    You talk about UPS, FedEx. and the Teamsters. The Express Carrier Employee Protection is for the employees of FedEx that have watched the company make more and more profits and our benfits go way way down. Then there is the working conditions, do you want aircrafts in the sky and large trucks on the roads that have been taken care of by employees that are afraid to do there jobs correctly because the company will lose profits because that same company only cares about money. FedEx does not care about their employees and they don’t care about the public that the aircraft fly over or trucks drive next to. The employees of FedEx want to do their jobs the way you want them to and that will only happen with the protection of a union contract. The employees also want to stay in the middle class but are losing ground all the time. We support local business all across the United States of America. I hope Americans will start to show support for us. Please support “Express Carrier Employee Protection” in HR1586.

    FedEx Employee

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