In an interview following last week’s Memphis Chamber of Commerce luncheon, Tennessee Sen. Lamar Alexander is quoted in the Commercial Appeal as saying the following about an amendment to the FAA reauthorization bill which would move FedEx Express delivery drivers under the same labor law as every other express delivery driver in the nation:
“If UPS wants to compete with FedEx, it should do it in the marketplace and not in the halls of Congress. And senators who greatly respect UPS, as I do, are offended by the legislative effort to damage FedEx for a decision it made when it started, which was the only decision available. The easy resolution of this is if UPS feels like it doesn’t have a level playing field, it can switch to the labor law that governs FedEx. It’s perfectly free to do that.”
While we certainly respect Sen. Alexander’s desire to protect a home-town employer, here are the problems with his statement.
1.) UPS absolutely, positively is competing in the marketplace with FedEx Express; however, an unintended loophole in labor law has provided an unfair advantage in the marketplace for FedEx. Federal law shouldn’t be providing special treatment to one company at the expense of another.
2.) The express delivery business FedEx Express is engaged in today didn’t even exist when FedEx was originally founded. This legislative effort isn’t intended to “damage” FedEx. The purpose is to address a new industry, as well as a major change in the company’s operations. To oppose such a change would be akin to exempting Wells Fargo from the nation’s banking laws because it started out as a stagecoach company.
3.) The bottom line is that the playing field in this matter is not level. FedEx Express drivers are being treated as if they were pilots while UPS drivers are being treated as if they were drivers. Yes, treating UPS drivers like pilots would level the playing field, but that would make no more sense than treating FedEx Express drivers as if they were pilots.
4.) Only Congress, not UPS, can switch UPS express delivery drivers over to the labor law that governs FedEx Express. If UPS was really free to do that, it would have done so long ago. That is why it is incumbent upon Congress to close the FedEx loophole once and for all.
#1 by Chris on April 14th, 2010
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And this person is an elected official?!? Someone get me a barf bag… I can’t take all the stupidity. It should be a clear cut argument in UPS’ favor. We all know that FEDEX greases the government’s pockets more than UPS does but C’mon! This is getting ridiculous!
#2 by Ryan on April 19th, 2010
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Below is an excerpt from a Businessweek article. It apparently costs more to convince Senators and Congressmen when you have a crappy argument, like FedEx.
FedEx Corp. spent nearly $4.7 million lobbying the federal government in the fourth quarter, according to a disclosure report.
That’s well above the $1.3 million that the package delivery company’s larger rival UPS spent in the same period and more than double the $2.1 million that FedEx spent in the year-ago quarter. The Memphis, Tenn., company spent $5.6 million on lobbying in the third quarter of 2009.
#3 by Chris on April 21st, 2010
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What surprised me was when FEDEX criticized UPS for it’s lobbying efforts and money spent on those efforts. Talk about the pot calling the kettle black. Well the proof is in the pudding…