The Small Business & Entrepreneurship Council (SBEC) recently submitted a letter to the Senate about an amendment to the FAA reauthorization bill which would close the FedEx loophole. SBEC President Karen Kerrigan made an important point often overlooked in this debate; that there are express delivery companies which would be affected by this amendment other than FedEx and UPS.
“Congress needs to understand that hundreds of small firms are unfairly disadvantaged by the current loophole afforded to one company under current law. And, any ‘deal’ that may be proposed to appease one or both of these giants, would continue to leave small business owners at a distinct disadvantage in this cut-throat industry.”
“Legal or regulatory loopholes extended to larger companies often create havoc and economic disparity for smaller competitors. That is why Congress should always strive to fully understand the unintended consequences of the legislation it advances.
“This is what happened when FedEx Express was allowed to categorize its drivers under the Railway Labor Act (RLA) rather than the National Labor Relations Act (NLRA). As we all know, FedEx Express uses this regulatory benefit to its business and marketing advantage. Competitors – large, mid-size and small – are disadvantaged as a result of this special treatment.
“It has been suggested by a few that UPS be given the same RLA loophole as FedEx Express. But what about all the other small to mid-size firms in the express delivery business, as well as small firms in the trucking industry? Shouldn’t the laws of the land be applied to all of us equally?”
Exactly. If you extend a special benefit to FedEx, you don’t fix that inequity by extending that same special benefit only to the company’s main competitor. That would be no different from exempting the National Rifle Association from the DISCLOSE Act and then coming back next year and exempting Gun Owners of America, as well – but no other smaller gun rights organizations.
Clearly the correct action by Congress in this matter is to treat all entities – large and small – equally under the law. Which means eliminating the FedEx loophole completely – not extending it to some, but not all.