FedEx CEO Fred Smith is always full of surprises. First, he threatened to pull his Boeing contract if Congress passes a provision of the Federal Aviation Administration reauthorization that would place FedEx workers under the NLRA, the statute that protects virtually all other private sector workers. Now his top flack is threatening to "destroy" members of Congress who support FedEx workers over FedEx management.
The House of Representatives overwhelmingly passed the legislation on May 21. The reauthorization bill is currently awaiting action in the Senate.
When asked about FedEx's multi-million dollar ad campaign against the legislation that is reported to launch on Tuesday, June 9, top FedEx flack Maury Lane told U.S. News and World Report in a story posted in The White House Bulletin, "I'm going to try to destroy them."
This follows Smith's repeated threats to cancel a $10 billion contract to purchase Boeing 777 planes if FedEx Express workers were moved under the National Labor Relations Act (NLRA). FedEx clearly threatened in a March 24, 2009 SEC filing, and Smith reiterated in testimony before Congress in May, that its contract to purchase additional aircraft from Boeing is contingent upon its labor relations for all of its employees being governed by the Railway Labor Act (RLA). Under this provision, if Congress dares to grant even a portion of its workers the rights enjoyed by most American private sector employees under the NRLA, FedEx has the right to cancel those purchase orders.
Fred Smith and FedEx breed a culture of arrogance and intimidation. First, they cut wages, increase medical insurance premiums and eliminate pension benefits for its employees. Then they try to blackmail Congress with threats to pull the Boeing contract. Now they threaten to destroy the political careers of those who oppose them.
One can only wonder what dirty tricks they'll be up to next.
Why is it that FedEx needs no outside representation for their workers? Maybe because FedEx takes care of their employees. I have heard of no outcries from FedEx employees, no marches, no petitions and I dare say no Strikes or threats of Strikes!
If you like your Union and it works for you great, keep it, FedEx is not trying to make you Non Union. Company wants no part of your MIsery.
Also, FedEx has had it's share of labor suits from unhappy employees, and if they are so happy, why throw millions at legislature that would allow FedEx employees to form a union. What are you afraid of...your employees wouldn't want to stand up for their rights...they're happy - right?
Oh, don't forget that FedEx invented the overnight business. Before FedEx, it took days/weeks to receive your package. UPS has done a good job copying what FedEx invented.
FedEx has two core operating companies, which work independently from one an other. FedEx Ground moves shipment “over the road†and its workers are covered under the same labor law as UPS, the NLRA. FedEx Ground drivers handle only FedEx Ground shipments and those shipment never enter the Air Network maintained by FedEx Express.
FedEx Express, the operating company that was born when Fred Smith founded FedEx is the airline, express shipping segment of FedEx. FedEx Express drivers exclusively handle priority, time sensitive air shipments that move in FedEx Express Air Network. They do not pick up and deliver ground shipments.
UPS drivers handle both Air and Ground shipments. If UPS were structured in the same way as FedEx is, I would hope that the RLA would apply to them as well. The fact is they are not. The RLA, included Airlines in the 1930’s to protect disruption in the flow of goods. FedEx Express is an airline, all employees of FedEx Express work for the airline, thus to RLA should apply to them as well.
This legislation is an opportunity for the Teamsters to line its coffers and help bailout through potential new membership their underfunded pension plan.
UPS and FedEx operate in the same core business. Both own substantial airlines primarily used to facilitate their main function: the delivery of packages. But to hear the whiners at FedEx talk about it, putting them on the same footing as their main competitor would amount to a bailout of UPS.
If UPS can operate a successful business while providing union wages and benefits to most of their employees, why can't FedEx? Are they just not good enough at running their business?
Or is FedEx's pity party really just their way of saying UPS is that much better run as a company? Service ratings between the two are neck and neck, so it's not like a union means no more on-time delivery. And UPS is consistently more profitable, so it's not like a union means no more profits, either.
Why exactly has it taken this long for Congress to revisit the absurd classification of FedEx as merely an airline? It's time to take off the training wheels and see if the folks at FedEx actually have a clue how to run a business.
Let us not forget, that Mr. Smith invented the overnight air express industry. Before FedEx, it was not possible to deliver life saving shipments such as a heart, or other organs needed for a life saving surgery. There are "millions" of peoples' lives that have been impacted by Mr. Smith and FedEx.
For Fred of FedEx to say he'll rough up congressmen and stop buying Boeing planes unless he gets his way sounds like he's having a tantrum rather than making smart business moves.
Fred needs a cold shower and his employees need to be able to form a union - they're working people just like us!
I'm a proud Teamster member in New York -- thank God we have good contracts that help us provide for our loved ones.
WE ARE WITH YOU FRED! LEAD AND WE WILL FOLLOW!