Someone using the fake name “Brown Bailout” – remember, hired guns who attack UPS never use their real names – recently emailed me the following:
“Chuck: Conservatives are not split on this issue. You are alone in advocating UPS’ legislative attack on their opponent Federal Express. As you know, UPS’ has attempted both in Court and through Regulatory agencies to have their status under labor relations law changed so that their drivers were covered under the Railway Labor Act. The Courts and Regulators have agreed, UPS drivers are rightfully covered under the National Labor Relations Act, as they are structured like a trucking company. Conversely, Courts and Regulators have agreed that Fed Ex Express is an integrated air hub and spoke system that is the perfect model for a company covered under the Railway Labor Act.”
Actually, I’m far from alone in my position on this issue – a fact which will become quite evident in the days and weeks ahead as this issue heats up. In the meantime, let’s counter the rest of the disinformation presented in this claim by Rick Manning….er, I mean “Brown Bailout.”
While it’s true that UPS attempted to get the same equal treatment for its express delivery drivers after launching its own airline in the late 1980s….so what? Why wouldn’t UPS want to get the same sweet deal that its competitor was enjoying? Duh.
But here’s the more important point which Mr. Manning….er, I mean “Brown Bailout”….isn’t telling you.
The deficiency and inequality here is in the law. It requires an act of Congress to fix the law. Regulators can’t do that. And the courts can’t do that….much as Judge Sotomayor may wish otherwise. It’s Congress which still gets to pass and change laws.
And yes, this law needs to be changed because the nature of FedEx’s and UPS’ business has changed dramatically over the last ten years. While FedEx may have started as an airline and UPS may have started as a trucking company, both are now multi-method package delivery companies which use both airplanes and trucks. There is no longer a rationale for treating one company differently under the law than the other….if there ever was.
But the real flaw in Manning’s….er, “Brown Bailout’s”….argument is this notion that FedEx Express “is an integrated air hub and spoke system that is the perfect model for a company covered under the Railway Labor Act.”
Actually, it’s not. The difference is in the words “integrated” and “integral.”
Back in the old days, even before my time, rail transportation was considered a critical part of the nation’s economy. A disruption of the rail service between cities was feared as a grave threat to the economic well-being of the nation, so a separate labor law – the Railway Labor Act – was enacted to avoid crippling labor strikes.
Then, shortly after Al Gore invented the airplane, Congress determined that airlines were as critical to the economic well-being of the nation as were trains, so it extended the Railway Labor Act to airlines.
As such, jobs deemed to be “integral” to the operation of an airline were all placed under the Railway Labor Act. For example, an airplane can’t fly without fuel, so the guys on the ground who gas up the planes are considered by the FAA (Federal Aviation Administration) just as “integral” to running the airline and pilots.
Ditto air traffic controllers, flight personnel, maintenance workers, etc. All are “integral” to running the airline and getting planes from city to city.
What’s at issue here, however, are the approximately 86,000 FedEx Express delivery drivers who take packages from the airport and deliver them on the ground to homes and businesses. These drivers have nothing to do with the airline getting packages from one city to another. These drivers are, in essence, taxicabs for packages and envelopes.
And while they might be “integrated” into FedEx’s package delivery system, they are anything but “integral” to the operation of the airline itself.
It’d be like FedEx creating FedEx Donuts at airports and claiming they were part of “an integrated air hub and spoke system.” But while such donut shops might be “integrated” into the overall FedEx system, that doesn’t mean they are an “integral” part of the airline itself.
You just can’t (or at least shouldn’t be able to) put everything and anything under the Railway Labor Act just because it gives you a competitive advantage in the marketplace. If FedEx Express drivers were “integral” to flying an airplane filled with next-day-air packages from Las Vegas to Baltimore, they’d have a legitimate claim to being placed under the Railway Labor Act.
But they’re not….so they shouldn’t be.
#1 by labels_up (UPS sorter) on July 4th, 2009
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What I fail to understand FedEx, which is asking for special treatment which amounts to a competitive advantage, is accusing UPS of asking for a “bailout.”
Clearly, FedEx does not understand the definition of “logic” or “common sense” any better than the word “bailout”
#2 by Tommy Gun on July 4th, 2009
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Well i agree with UPS.They should change the rules for fedex because im tired of customers saying that UPS sucks.I want Fedex to suck just as bad as us.
#3 by C.S on July 4th, 2009
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Chuck, I really hope your not alone on this issue.We’re going to need republicans and democrats on board to get this bill passed.Keep up the good work.
Pingback: » Chuck Muth’s News & Views - July 5, 2009 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater
#4 by FedEx 4 Life on July 5th, 2009
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When FedEx came along and “invented” the Air Express Carrier, it essentially provided a “blueprint” for an air operation under the RLA. When UPS decided to get into the overnight business, they chose to integrate their air operation into their ground operation. As FedEx grew, it decided to keep each opco independent.
Now, UPS is claiming that they want to “level the playing field.” Why should FedEx have to pay for business decisions??
(Also, I thought Al Gore invented the tree.)
#5 by C.S on July 6th, 2009
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Type your comment here
Didn’t Fedex Express use some of it’s profits to purchase RPS and turn it into Fedex Ground back in the 90’s? The express carrier status should have been lifted immediately after that point.
#6 by FedEx 4 Life on July 6th, 2009
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I would agree *if* they were the same company. FedEx Ground and FedEx Express are separate companies with different tracking systems. A FedEx Express employee cannot pick up and deliver FedEx Ground shipments and vice versa.
#7 by C.S on July 6th, 2009
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Type your comment here
I beg to differ. I’m a courier at Fedex Express and we have Ground packages in our dropboxes all the time.We transport those packages to our station and a ground driver comes by our station each day at 5:30 and picks them up.So Express and Ground do work together more than you and Fred would like the public to think. Want me to take a picture and send it to you?
#8 by FedEx 4 Life on July 6th, 2009
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Really? So you’re telling me you can look up a FedEx Ground tracking number in COSMOS and you can deliver FedEx Ground packages?
#9 by chuckmuth on July 6th, 2009
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Who cares, “FedEx4Life”? That’s not the point. The point is you claim that if FedEx Express unionizes and goes out on strike that there’d be no way to pick up and deliver packages to and from the airport. As the average person is now learning, that’s bull. FedEx could perform said services without even going outside the company to hire replacement drivers. Your labor strife armageddon argument just doesn’t hold up when weighed against, you know, the facts and stuff.
#10 by FedEx 4 Life on July 6th, 2009
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It takes time to do what you are suggestion, thus, impacting the air express service. No timely trucks, no timely planes, no timely deliveries. It’s pretty simple.
#11 by chuckmuth on July 6th, 2009
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It’s not “pretty simple.” It’s a stretch – of mammoth proportions. If I absolutely, positively have to have it from Las Vegas to Baltimore tomorrow morning, I’ll drive the package to the airport myself (Or I’ll call UPS).
#12 by FedEx 4 Life on July 6th, 2009
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Can’t argue with that! Let’s outsource the driver to the consumer and problem solved!
At least Al gave us trees.