FedEx issued a new SEC filing last weekend, but I didn’t even notice it until a Wall Street Journal article pointed out an interesting part of it:
In addition, in January 2009, we exercised our option with Boeing to purchase an additional 15 B777F aircraft. Our obligation to purchase these additional aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act. In January 2009, we also obtained an option to purchase an additional 15 B777F aircraft. Accordingly, we have now agreed, subject to the above contractual condition, to purchase a total of 30 B777F aircraft and hold an option to purchase an additional 15 B777F aircraft.
Apparently, according to the same Wall Street Journal article, FedEx has had a labor advantage over UPS for years. Because FedEx started as an airline, it is covered under the Railway Labor Act, while UPS, which started as a trucking company, falls under the National Labor Relations Act. Apparently the latter law makes it easier to unionize.
I can’t say I support the idea, but it is a great way to play politics, to say the least. Basically, FedEx can say an approval of this bill will hurt Boeing union workers. I wonder if this strategy will change the votes of any representatives from Washington.
While I understand FedEx’s motives here, I dont think this is the best move. In my opinion, it would be better for the company to figure out why employees would want to unionize, and try to deal with those issues first.
I and many others hourly employees at Fedex Express totally agree with your opinion in this matter. Fedex is basically threatening congress to try to hurt other American jobs to strictly protect the interest of the share holders and the president/founder/and CEO Fred Smith by lobbying not to allow it’s employees the right to vote for a Union. Instead of addressing the problems it’s employees are having. Why else would Fedex be lobbying so hard against the right for it’s employees to vote for a Union if it treated it’s employees fairly. Fedex claims to have a “people service profit” philosophy but this is just not the case. For more information on these matters you can check out fedexwatch.com or sign up for an account and check out the forum at fedexaminer.com
FEDEX NEEDS A UNION!!! How is it fair that a rival company like UPS is Union and we are not? Fedex has a no layoff policy because during the months of June,July and Aug they fire more workers then any other months. That’s there no layoff plan. Not to mention when you are fired they fight to make sure the workers don’t get unemploymeant. How can a company like this be one of the best to work for? Who named it that it def can not be the workers because I and others would disagree totally with that. I hope that the senate will pass the new RLA and have Fedex in NRLA as UPS and let us the workers decide if we want to be union or not. If you as a company are as good you say then why be worried about us making a decision for ourselves.
I can’t blame FedEx for this one at all. One could say the NLRA makes it easier to unionize. But a more accurate way of putting it would be that it makes it easier for a vocal minority to force unionization onto their fellow workers.