The Arrogance of FedEx
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.
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The issue is not if everybody at FedEx Express unionizes, but whether the system is exposed to pockets of potential unionization - creating the potential for network disruption at any given time. Removing FedEx Express from RLA would expose FedEx operations to service interruptions that could impact the shipment of critical goods like medicine and essential inventory. The RLA was specifically designed to "avoid any interruption to commerce" which is why our nation's airlines and rail services have operated seamlessly under this law for decades. A recent national poll of 800 registered voters found that 81 percent believe FedEx and UPS have been operating successfully for decades, and since consumers have choices, competitive prices and service options, there is no need to change the laws. There's a lot more information at www.BrownBailout.com. Check it out.
You people have to be kidding me. Working for FEDEX sometimes sucks. Yeah its nice to have a job and all and with Fred taking a 20% reduction is nice and all. Whats really wrong with Congress giving the right to the employess to have a vote. If the company is doing the right thing with there employess (just read all the lawsuits they have, a lot) why should they be scared of people wanting to form a union. I feel if its a well run company and the employees go union it can survive, this isnt a car company or enron. Fedex intimidates there employees big time, with ON-road productivity the number 1 priority over service, please its been this way for a long time and its dis-heartening to the drivers who have to deliver the late pkges everyday, but as long as we meet 100 on raod for day we are ok. You people have to understand your not in 1985 anymore working for this company. Times are changing. Alot of us feel now we have nobody to back us up or stick up for us but US. Sometimes you need more than that. Just b/c you go union say at your local facility, doesnt mean your gonna get $3.00 more an hour , just like that. Theres just way too many big wigs with fat wallets right now.
The biggest fiction out there is that unions help employees. The undisputable FACT, is that Unions only help two classes of people 1) the fat-cat brass that are actually on the unions payroll and 2) workers that are too lazy to suceed based on their own individual worth. Look at facts, when a Teamsters local goes out on strike because of extremely unreasonable demands the striking workers don't get paid, but guess who still does . . . HOFFA still draws his paycheck from the pot created by union dues. Why don't people see this, unions dues do not go to help the workers, they go directly into the pockets of the union bosses. When FedEx cut salaries in response to the economic crisis we are all suffering through, it did it in order to keep people employed. You would have to be stupid to not realize that 95% of a paycheck is better than no paycheck. BUT BEFORE DOING THIS Fred Smith voluntarily took a 20% pay cut. That shows character and dignity that Hoffa (and his mafia thugs) could never even imagine. Bottom line - Unions are destroying this economy. Demanding more when there is not more to give is what is putting people out of work. If you do not like where you work, go somewhere else!!!! Do not turn to a union that will steal from your paycheck and ultimately close down your employer.
FedEx delivers a superior service than any of it's competitors. Unions may have been the way of the world when UPS was created 100 years ago but just as with the horse and buggy progress prevails. We have the court systems to settle work disputes if needed and there are so many safeguards for workers in the corporate world today. Today the Unions bring food lines and depressed cities when they fail. Who benefits from a Union? That is the question that everyone should ask and not answer with an emotion off the cuff response but with true intellect. FedEx Express may deliver your package by a truck but it was plane that brought it to your state. If UPS wants to play fair and they want part of Next Day Air profits then they should move all their freight by planes and let's see how fast they would want to be under the RLA.
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.
UPS out delivers FedEx daily with better service numbers. During this economic downturn, UPS has outperformed FedEx and has not been as hard hit by the slowdown. Better managed company with better paid employees that outperform FedEx consistnently. If FedEx Takes such good care of it's employees, why do UPS employees make 30% more for the same work. I'll tell you why...because like most non-union companies, FedEx is extremely top heavy with it's salaries.
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?
UPS tried to follow the FedEx model several years ago, but the Teamsters would not allow it. The reason UPS has not been hit as hard, as most of the packages that UPS delivers are delivered via the "trucking" arm. The overnight segment is what has been hit the hardest, in which FedEx dominates.
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.
I have to disagree and working for Fed Ex is can attest that not a better ourfit could you work for. Recently the company eliminated 1000 jobs to save money, but none of them lsot jobs. They still sork for Fed Ex, jsut in a different capacity. Would that happen without good relationships between management and employee. I think not. And how about the fact that all employees, full or part time get health coverage. I guarantee that thsi little perk would go bye-bye. I;'m with Fred on this one
Why should FedEx Express’ status remain unchanged? See as an example the UPS strike of 1997 that had a major negative impact on its customers and all but crippled the productivity of American businesses. The intent of the RLA is to protect commerce from such work stoppages.
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.
Last FedEx package I'll ever ship. Sorry, Fred. You don't have the right to threaten me, a citizen and customer, the Congress I elect, or the employees you hire.
The smear campaign by FredEx is ridiculous. The bottom line is that FedEx has been riding with training wheels since its inception, while its chief competition has had to run an actual business. And that's where the focus should be in this discussion.
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.
Referring to Fred Smith and FedEx as "FredEx" is very disrespectful and "ad hominem" and is attacking one of the great entrepreneurs of our time. To call Mr. Smith arrogant is despicable.
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.
Hey - I've got friends who work for Fed Ex and that company treats them like s**t. They work really long hours, are under constant stress to deliver more, faster, etc. They need a union.
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.
Sounds to me like Fred took this play right ouf of the union handbook. I hope they like a dose of their own medicine! Someone needs to stand up and lead the way to end this political corruption.
WE ARE WITH YOU FRED! LEAD AND WE WILL FOLLOW!
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