The United States Senate is considering a proposal, embedded within the FAA reauthorization bill, which would place FedEx Express’s package delivery drivers under the same labor law as every other package delivery driver in the country.
And as FedEx Express ramps up its efforts in the halls of Congress to oppose this change and retain its unequal treatment under the law at the marketing expense of its competitors, it’s time once again to weigh in on the issue.
To refresh everyone’s memory, here’s how FedEx describes itself and the legislation currently pending before the United States Senate:
“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.”
First, the RLA stands for Railway Labor Act – even though FedEx Express is not, you know, a railroad. But we’re dealing with government here, so it’s not supposed to make any sense. That said, the RLA is a special set of labor laws designed to make it harder for labor unions to organize a company’s workforce.
Every other employer generally falls under the auspices of the NLRA, the National Labor Relations Act, a horrible mish-mash of government meddling in the private employment relationships of American companies which tilts far too far towards organized labor. But that’s another argument for another day.
The essence of this issue is that FedEx Express’s express package-delivery air/ground workforce is treated differently under the law than its competitors’ express package-delivery air/ground workforces. And this unequal treatment under the law gives FedEx Express a tremendous marketing advantage over its competitors.
Indeed, to this day FedEx Express is claiming its non-union status, protected by being covered under a different set of labor laws than its competitors, allows it to provide – as you can read for yourself in the statement above – “the best opportunity to deliver reliable, uninterrupted service to customers.”
FedEx Express uses its non-union status as a sales weapon the way a used car salesman uses low mileage.
But even that isn’t the point. This isn’t about FedEx Express’s air/ground package delivery rivalry with UPS. And it’s not about the Teamsters or organized labor, both of which should go the way of the dinosaur. It’s about….the law. And the uniquely American principle of equality under the law.
FedEx Express’s express package delivery drivers pick up packages and deliver them to and/or from an airport. UPS’s express package delivery drivers pick up packages and deliver them to and/or from an airport. As far as the law is concerned, both companies and their drivers should be governed under the same law. Period.
This isn’t an attempt, as FedEx Express falsely claims, by UPS “to gain a competitive advantage that they have been unable to gain through their service performance.”
This is simply an attempt by Congress to level the express package delivery playing field and make sure that competitors are all playing under the same rules; that one team doesn’t get four strikes, five outs and ten players.
FedEx Express is trying to sell Congress on the notion that unequal treatment under the law is a good thing. Congress may want to check the odometer on this clunker of an idea before they end up buying a lemon.
#1 by Chris on October 15th, 2009
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I find it to be very suprising that there are people that actually defend FEDEX in this matter. It is a pretty cut and dry situation. They are very nervous and are assaulting many people’s characters with their slander campaign. Public opinion so far shows that because UPS has not launched a similar campaign that the one who is right is the one that’s not crying like a baby. I am pretty confident that this is going to turn out in UPS’ favor.
#2 by Doug Gilcrest on October 16th, 2009
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I think this should be a no brainer and it has gone on far too long. I can’t understand why this hasn’t been resolved and how Fedex was allowed to get away with this in the first place. It’s obvious that UPS has been delivering packages for a lot longer. What made Fedex so different, were they going to drop packages from their planes? I guess the expectations of our politicians to make a logical decisions without asking what’s in it for me are too high.
#3 by FedEx 4 Life on October 20th, 2009
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Chuck, glad to see you back on the website!
UPS had the same opportunity )actually slightly better considering FedEx Express already had a working model to copy) when they built their airline. They chose a different business model and decided to use two different companies to delivery their air express volume, which is rightfully their decision. However, this is a decision that they must live with and any competitor is going to exploit perceived weaknesses to gain market share. UPS does it today with FedEx Ground and FedEx Express – a decision FedEx made to completely separate its networks.
Also remember that FedEx supported the reclassification of UPS under the RLA back in the 90s…
#4 by C.S on October 21st, 2009
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Fedex4Life, sorry to see you back defending a losing cause. As long as Fedex drivers are delivering packages out of delivery trucks and vans there is no logical reason that we should be classified as aviation employees. If the company starts making us drop packages from a plane helicopter, or a hoover craft then you might have an argument.
It’s pretty comical how Maury Lane says that you can’t put stop signs at 30,000 feet and tries to pretend that the trucking operation at Fedex Express doesn’t exist. I drive a delivery van and I drive up to plenty of stop signs each day. If Fedex prevails in their argument then the outcome won’t be based on it’s merit, it will be based on campaign contributions and special favors, like flying Senators around the country on Fedex private jets.
#5 by FedEx 4 Life on October 21st, 2009
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What do you have if you remove the drivers from FedEx Express? Nothing, because the business model calls for specific drivers to feed the planes. What’s the use of flying empty airplanes if you don’t have trucks to delivery and pick-up the freight?
#6 by C.S on October 21st, 2009
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It’s an endless argument with you and all the clowns in upper management at fedex, but the fact is and always will be that truck drivers are truck drivers not aviation employees. Why is it when I bid on a specific route at Fedex, the job is posted as a DOT courier position? DOT meaning department of transportation. It doesn’t say Faa courier nor do I have to have an Faa license to work for this company.
#7 by Lrex on October 25th, 2009
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Another great article Chuck. Fedex has nothing to fear if they have been treating their employees so great, but obviously by the way they are acting they are scared to death. Fedex should have to work in the free market like every other company and try to keep a Union out without buying a special legislative exemption. Fedex covers entire states with trucks. The people that drive trucks are truck drivers. This situation couldn’t be more clear than it already is! The irony in all of this is that Fedex has done exactly what they are accusing UPS of doing, Fedex has bought a legislative exemption and purchased a bailout for the Fedex upper management.
#8 by FedEx 4 Life on October 27th, 2009
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Well, that’s one thing we both agree on – to disagree. However, if I was in upper management, I’d certainly make some changes. : )
The bottom line is and always will be: each part is critical in the overall success of the express business model. When FedEx Express starts contracting it’s freight out to another company or UPS Air grabs it’s own separate pick-up and delivery network, then it will be a level playing field and a valid argument.
Lrex – don’t forget that FedEx agreed with UPS in the 90s when they tried to get reclassified under the RLA.
#9 by Lrex on October 29th, 2009
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I doesn’t really matter who agreed on what in the 90’s right now. Fedex covers entire states with trucks. There is no other “airline” in existence that does anything even similar to Fedex. People that drive trucks are truck drivers, nothing can really change that. It really doesn’t matter what UPS wants, if Fedex didn’t think their employees would vote for a Union there would be no reason for them to figh this. That tells you a lot about that company.
#10 by C.S on October 30th, 2009
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Agreed. Over half of our location has already signed union cards, we’re just waiting on the legislation to pass.
#11 by FedEx 4 Life on November 2nd, 2009
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There is also no other airline that has the same business model as FedEx Express; so much for innovation…
If we want to organize as a whole, so be it; however, I have a problem with local unionization potentially affecting my job – especially with ridiculous “vote cast” rules.
FedEx is only trying to protect its business model. Forcing different labor laws on FedEx Express will force it to change the way it operates.
#12 by C.S on November 3rd, 2009
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I’ve been told that if I don’t like the way things are at Fedex, then I can just quit and find another job. If the labor classification changes and you Fedex defenders are not happy, then why can’t you go find another job. You know, “if you don’t like it quit” LOL
#13 by FedEx 4 Life on November 3rd, 2009
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I’m sure if we all acted on impulse and that frame-of-mind, we wouldn’t get too far in life.
Of course, the difference is something FedEx did to me personally vs. something the gov’t or another agency did (although I’ve yet to find the utopian job).
If FedEx truly did something that completely made my job miserable to the point I could not work there any longer, then I would look for another job; however, to date, I have nothing that would warrant me to seek employment elsewhere.
#14 by C.S on November 3rd, 2009
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Well, that’s great! I’ll be glad to hear about your kind leaving when you aren’t man enough to deal with a workforce that actually has some legal backing. You guys have screwed so many of us and your day is coming.
#15 by FedEx 4 Life on November 5th, 2009
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Your resentment is misplaced. I’ve never been in a position to “screw” anyone nor would I do that even if I was in such a position. I bleed Purple everyday.