FedEx and UPS spar over union rights
UPS and FedEx are in a battle over unions. UPS lobbied for FedEx teamsters to have the right to organize, a move FedEx is resisting. Dan Grech reports.
A FedEx truck is parked between two UPS trucks. (Justin Sullivan/Getty Images)
TEXT OF STORY
Kai Ryssdal: Wall Street analysts usually look to FedEx and UPS as a sign of economic things to come. If they're moving more packages that's seen as a promising sign. Now, though, labor specialists are paying attention to a disagreement between this country's two biggest delivery services. And this question: Is FedEx an airline or a trucker? Marketplace's Dan Grech has more.
DAN GRECH: Congress is considering a change to labor law that would make it easier for FedEx Express drivers to unionize. FedEx currently is treated as an airline company, which is governed by the Railway Labor Act. Its industry rivals are treated as trucking companies governed by the National Labor Relations Act.
The new legislation would treat FedEx Express like a trucker. Ken Hall is a vice president at the Teamsters trucking union, which stands to gain new members from the change.
KEN HALL: We think it provides for a level playing field.
Rules on unionization are tougher in the airline industry, since local strikes can paralyze the national transportation system. Hall says that means FedEx drivers have historically had a harder time collective bargaining, as compared to UPS drivers.
HALL: UPS employees' hourly wage rates are significantly higher, plus their health-insurance benefits are better and cost them less.
FedEx has said its wages and benefits are competitive with those of UPS. And a FedEx spokesman said that 85 percent of FedEx Express shipments are delivered by air, while 85 percent of UPS packages are by truck. FedEx says the legislation would tip the scales in favor of its arch rival.
Earlier this month, FedEx started a Web site called Brown Bailout. The site includes a video parody that features a UPS employee searching Capitol Hill for the bailout office.
The dispute has created strange bedfellows. Siding with the Teamsters in backing the proposed legislation is a collection of conservative groups including the Frontiers of Freedom. George Landrith is the nonprofit group's president. He says the legislation appeals to some conservatives because it will encourage fair competition in the transportation industry.
GEORGE LANDRITH: So now the question is will the law correct the accident of history and treat them the same. Or will it decide to treat one unfavorably and one favorably?
Landrith says he can think of few occasions over the past two decades that he's agreed with the Teamsters on anything.
I'm Dan Grech for Marketplace.
Comments
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10/29/2009
Someone correct me if I am wrong.....Are the Fedex package drivers not independent drivers? (no benefits)
From Fort Worth, TX, 08/05/2009
If things are so bad at Fed Ex, why aren't the employees making a racket? I have been following this debacle and I think that one company shouldn't force another company to submit or commit to anything. A lot of people stand to make money out of this....who's thinking of the employees?...Ohh the last I heard UPS drivers were making $29.00/hr...and even non-drivers are making $17.00/hr...
From mt juliet, TN, 08/03/2009
For those that think the temesters are the savor, you should ask some of your ups drivers what happened to there retirement that the temesters spent and ups had to replace. the ones that want the teamters are the ones that want something for nothing just do your job.
07/19/2009
It is impossible for fedex employees to unionize or ask for union representation as someone has asked about previously in this post. Under the Railway Act it is very difficult for employees to organize for a union vote or to be protect from retaliation from their employer. That is why fedex is fighting so hard to retain status as an airline. The are the only delivery/pickup company that is classified as such. This is strictly to keep their employees from having the right to organize a union.
From Chelmsford, MA, 07/18/2009
This whole issue about the teamsters and FedEx is about money. The teamsters see FedEx as a major money source and they want a piece of the action. My prediction is they will never get into fedex because their employees are overall very happy.
From Ithaca, NY, 07/17/2009
Perhaps the Teamsters/Frontiers of Freedom partnership is not so unusual after all - FedEx refused to pay off the conservative think tank ACU (http://www.upi.com/Top_News/2009/07/17/Report-ACU-offered-endorsement-for-money/UPI-60761247850851/), so they went with UPS. See also http://volokh.com/posts/1247839717.shtml
From Miami, FL, 07/17/2009
I would like to know why Dan Grech did not ask UPS why they do not request to be classified under the Railroad Labor Act or if things are so bad at FedEx, why aren't the employees asking for the union representation? I think that an unbiased and common sense view would have included these point of view. It is clear that the Teamsters has millions to gain from union dues, why doesn't the world see this?
From HI, 07/16/2009
Is the Air Force deuce and a half the same as an Army 5 ton truck from transport unit at Fort Eustis? Perhaps to a civilian they look nearly the same. But there is a deep set difference in mission of Army and mission of Air Force.
Although I am not good at history, I remember reading that 40th President fired air traffic controllers for illegally going on strike. He had to do it. No, air traffic is not holy from being in heaven, but our planes are not supposed to be there. Our submarines are not supposed to be under water. When you go close to crush depth, you can feel that you should not be there. When you step down on the moon, you know that you are in the wrong place at the wrong time.
We must have great respect for air travel. We cannot compromise for political whim, for votes.
Does FedEx belong to air travel? Then live with it.
From Minneapolis, MN, 07/16/2009
I have been a driver for Fed Ex for over 25 years and have seen an increasing disparity in the pay and benefits between Fed Ex and UPS. Although I can appreciate the view in favor of unionization, I am disappointed that you had no guest to comment AGAINST it. Thank you for covering this issue.
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