Since we couldn’t possibly put it any better, we’re reprinting the following column by Kevin L. Kearns, president of the U.S. Business and Industry Council, in its entirety:
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FedEx’s disingenuous “Brown Bailout” PR campaign has attempted to persuade Congress that a loophole in the nation’s labor law that benefits FedEx and only FedEx shouldn’t be closed by an amendment to the current FAA reauthorization bill. As such, it has accused rival UPS of holding up the bill when, in fact, it’s a veto threat on behalf of FedEx by the company’s home-state senators that is actually delaying final passage.
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From the Associated Press on Thursday:

“The Massachusetts attorney general says FedEx Ground has agreed to pay the state $3 million in a dispute over alleged misclassification of drivers as independent contractors. The state says the package delivery company’s actions denied the state payroll taxes as well as worker’s compensation and unemployment assistance contributions.

“The attorney general said the company also gained an unfair competitive advantage.”

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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.
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This afternoon, the U.S. House of Representatives voted to extend the current FAA funding until August 1, 2010. Below please find a statement from Chuck Muth, President of Citizen Outreach, about the latest extension.
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As the July 3 extension deadline for the FAA reauthorization bill nears, the FedEx disinformation campaign against a provision in the bill closing a loophole that gives the company a “significant advantage” over its competitors has gone super-nova. In an op/ed published by The Hill on June 21, David Branczek, president and CEO of FedEx Express, laments that the FAA bill is in limbo:
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FedEx has resorted to just about every trick in the book – short of hiring a witch doctor to put a voodoo curse on UPS – in its effort protect a loophole in the nation’s labor law that gives the company a huge marketing advantage over its express delivery rivals.
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Christopher Hinton, writing in the Wall Street Journal last week, affirmed the fact that a loophole in the nation’s labor laws tilts the express package delivery market in FedEx’s favor.
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To hear FedEx explain it, the company was formed in 1971 as an airline and, therefore, should continue to be treated as an airline…including its non-airline express delivery ground operations.
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The FedEx “Ministry of Propaganda” was at it again on Tuesday with another misleading Brown Bailout piece distributed by the company’s PR agents and lobbyists. Here’s the main message:
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