Unions May Cause FedEx Prices to Soar

  • Comments: 40
  • Written on: July 20th, 2010

It always amazes me that some people just can’t seem to grasp the concept that if you raise costs on businesses the prices they charge consumers for services will go up.

Congress is considering more sweet-heart union legislation that would require express mail carriers (like FedEx) to be regulated under the National Labor Relations Act (NRLA).

The Teamsters Union has been at work in UPS for years causing regulation headaches and increasing shipping prices for consumers and now they want in on the FedEx action as well.

Their objective is to boost their membership numbers and consequently the money they can spend on political campaigns and lobbyists.  The fastest way to do that is to get a piece of the non-unionized FedEx pie.

Rather than asking FedEx employees if they want to be represented by a union, the Teamsters have used political influence and Capital Hill lobbyists to try to force their employees into paying union dues whether they want to or not.

Hoffa Wants 100,000 FedEx Union Members

Teamsters Union President James Hoffa called on Congress to force FedEx air express workers to operate under the NRLA, and vowed to “organize 100,000 workers at FedEx” once that happens.

Multiple attempts at company-wide unionization of FedEx have already failed as workers reject union monopolies, so Teamsters have developed legislative strategies to force unionization.

The Senate is expected to decide on the bill, Federal Aviation Administration Reauthorization Act, soon. This legislation would be government intervening in a private company’s operating procedures– and it amounts to a boon to the Teamsters union, and a drag on our economy.

What You Can Do to Stop Abusive Union Legislation

Call your Senators today and ask them to please VOTE NO on the Federal Aviation Administration Reauthorization Act and to oppose the special deal for the Teamsters.

It is anti-competitive and another example of Washington backroom dealing—without public oversight.:

US Senator Mike Johanns in Omaha: (402) 758-8981

US Senator Ben Nelson in Omaha: (402) 391-3411

What Happens if This Law Passes?

Today, prices are down, reliability is up and access to markets has never been better in the shipping industry. Our economy depends on a reliable and competitively priced express-delivery network for emergency  medicines, replacement parts and critical inventory.

But if Congress creates a government-mandated monopoly, prices will increase, service and reliability will decrease, and then access will be limited.

Consumers may have to pay a “hidden package tax” to fund this bailout. Estimates vary, but a mere 10 percent increase in costs would result in an extra $9 billion cost for consumers. Not to mention reduced reliability, longer shipping times and more limited access to rural markets around the globe.

In addition, FedEx and other overnight air carriers will be subject to labor strikes like UPS experienced in 1997, which had catastrophic consequences for the economy.

Shipments of indispensable items like medications, food, paychecks – could end up stranded on shipping docks across the country again.

  1. taoist meditation said on July 22nd, 2010 at 4:06 am

    We’re excited because, first of all, the team direction has changed, [general manager] Gene Smith, our coaches and young players have brought a renewed enthusiasm.

  2. Net Age | Web Design said on July 22nd, 2010 at 5:56 am

    This is utter nonsense! Nothing more than organised crime, in actual fact. The fact that they dress it up as it stands merely serves to impart a veneer of repectability and authority. Who voted for these creeps anyway? They are worse than politicians!

  3. Mike
    Mike said on July 22nd, 2010 at 9:49 pm

    Thor,

    You are an idiot.Your “What Happens if This Law Passes” segement is COMPLETE BULLSHIT!

  4. Thor said on July 23rd, 2010 at 8:29 am

    Thanks for your comment Mike. Please help me understand which sentence in the last segment of my post is “COMPLETE BULLSHIT.” Lets take them one by one…

    Today, prices are down, reliability is up and access to markets has never been better in the shipping industry

    You disagree that prices for shipping are reasonable and just about anyone anywhere can ship almost anything anywhere else?

    Our economy depends on a reliable and competitively priced express-delivery network for emergency medicines, replacement parts and critical inventory.

    Is it your contention that the lives of every American benefits either directly or indirectly from access to shipping services?

    But if Congress creates a government-mandated monopoly, prices will increase, service and reliability will decrease, and then access will be limited.

    It is common knowledge that unions negotiate higher wages for employees, more lucrative benefit packages, and limit working hours.

    It is also fact that FedEx is the last remaining major express shipper that is not unionized.

    Employees love this, but from a business perspective this is called an increase in the cost of doing business. Increased costs result in one of two outcomes: Higher prices or a reduction in the quality or quantity of service.

    Other unionized companies have to compete with non-unionized FedEx, so forcing FedEx to form a union would be creating a union monopoly.

    What part of the above do you disagree with and why?

    Consumers may have to pay a “hidden package tax” to fund this bailout. Estimates vary, but a mere 10 percent increase in costs would result in an extra $9 billion cost for consumers. Not to mention reduced reliability, longer shipping times and more limited access to rural markets around the globe.

    This law is viewed as a bailout for the Teamsters union. Membership is sliding, dues are down, and they need money to accomplish the union’s goals. Unionizing FedEx by force (i.e. Congressional law) would provide much needed membership and cash to the Teamsters.

    FedEx’s profit margins will remain the same because it is a publicly traded for-profit business. As we demonstrated above, unions raise a company’s cost of doing business. Is it unreasonable to assume that a cost increase (the hidden package tax) will fall on its customers’ shoulders?

    In addition, FedEx and other overnight air carriers will be subject to labor strikes like UPS experienced in 1997, which had catastrophic consequences for the economy.

    Are you honestly trying to say that the Teamsters union has never performed a strike against employers? Are you saying this did not happen in 1997?

    Or are you saying that the Teamsters would form some sort of gentleman’s agreement with FedEx that they would never strike against that company? Please help me understand…

    Shipments of indispensable items like medications, food, paychecks – could end up stranded on shipping docks across the country again.

    So IF this law passes and the Teamsters have a 100% choke hold on national express mail shipping and they decided to strike how will these items get delivered?

    It would be truly ironic, if the Teamsters had this power and decided to strike, that FedEx employee paychecks wouldn’t be delivered because there would be no way to do it via express mail.

    So please enlighten me Mike, what did I write that was incorrect?

  5. car battery said on August 2nd, 2010 at 3:04 am

    Wow Mike, that was a rather rude and totally wrong comment. Thor’s right about this. What’s going on here is nothing but corruption at work and hopefully, the ‘mob’ don’t succeed in their goals on this one.

  6. steve said on August 2nd, 2010 at 8:44 am

    I am a FedeEx courier. I am tired of being paid much less than the UPS drivers. Let us decide if we want the union. After Fred stripped our traditional pension plan and has made our substandard heath care option almost unaffordable I’m sure the union would benifit us. I’ll gladly pay union dues to represented by someone who has our needs and concers in mind. Bottom line, if UPS can have a union and be a profitable company so can FedEx!

  7. Thor said on August 2nd, 2010 at 9:41 am

    That is fine. If FedEx employees want to organize that is the prerogative. What I am talking about here is FORCING a union on a company through congressional legislation. The point here is you would not have a choice. You WOULD pay union dues. If you want to be in a union that’s fine, but shouldn’t everyone have a choice in the matter?

    By the way, if your job is so awful, why don’t you do something different?

  8. used tires said on August 10th, 2010 at 11:20 pm

    That would be horrible if this thing got threw and passed, we need a free market for everything to work properly as it should. Big Government just needs to stay away, and led FedEx handle their employees and other relations as how they see fit. Free market all the way.

    -John

  9. TooTall Tom
    TooTall Tom said on August 22nd, 2010 at 7:44 pm

    I am a pacage handler for fed Ex. If you dont like the way its run work for UPS for a year. Im more than sure Your view will change in a big damd hurry!

  10. fedup
    fedup said on August 24th, 2010 at 6:36 pm

    i work at fedex and let me tell you they can do a lot better by theyre employees ..i know you dont like your job quit?!!!? a lotta smartasses like to say that , like its that easy??!!?? ive worked union and nonunion jobs ive never been fired i always give a 100% the nonunion outfit i worked for started cutting hours making the job not worth having anymore so i got on with a union company and quit the other , union company by far the best job i ever had hands down !!!! but i got layed off a couple of years ago and got hired at fedex ….WE NEED THE TEAMSTERS IN THIS COMPANY its the only way to get a fair deal for our labor period!! UPS gets treated better than we do, post office gets treated better than we do…… ORGANIZE AND GET A CONTRACT!!!!!!!

  11. Thor said on August 25th, 2010 at 8:59 am

    @fedup You seriously want to hold up the post office union as an example of a successful workplace? They are so incredibly inefficient that they pay UNION employees to stand in closets for 8 hours a day because they CAN’T fire them.

    Then, when they run millions and billions of dollars in the red, they just hike the prices.

    The whole point of my post is that if FedEx wants to unionize, that’s fine. You are right – organize and get a contract. But don’t do it through a Congressional decree.

    What do you think will happen to FedEx’s prices if they are forced to pay people they don’t need, fund pensions that are unsustainable, or pay people 2x the going rate for the same work they would do in any other company?

    Prices will rise! There is no free lunch FedUp. Sorry.

  12. JJ
    JJ said on August 25th, 2010 at 5:19 pm

    Working in Union and Non-Union establishments, I’ll take UNION. Using the excuse that buying product from Union is more expensive is actually a lie that is put out to the public. The companies DO NOT CHARGE LESS to consumers. We have less Union shops where I work and the prices are not lowered. So it is a lie to tell the public that because of Union contracts they have to charge more. The employees make almost 1/2, have no benefits (health, pension), are scheduled 8 hrs but are told to leave after 2-4. Yet the sales in the non-unions shops are not down, most are actually up. The companies CEO’s are cutting at employees expense to make more money for the Board. Even in the Union shops, new management style is to threaten employees, use intimidation tactics. At least the Union shops have protection. Also, after working in Union and Non-Union, it’s another lie to claim Union members are lazy. I’ve found it to be the opposite. No matter where you work and what job you are always going to have some less than productive employees. The majority of Union members know what’s at stake and how hard they’ve worked to accomplish it. The lower paid, under appreciated non-Union employees I have found to be less productive, more sick calls, etc. When ever you have someone standing out in the non-union shops, we try to get them moved to the Union shops where they can make more and have better opportunity. They are a better trained, qualified employee. Turnover is also very high in non-union. Sp please. Stop blaming Union members for corporate greed.

  13. itskuhl
    itskuhl said on August 25th, 2010 at 9:55 pm

    Look at the money that UPS makes and then look what FedEx makes- thats the way management motivates employees-“They make tons more than we make-we got to compete”. That despite the inefficiencies of the unions. Oh Yeah! What the hell was I thinking? FedEx employees that fly the planes for the “Airline”, UNION! Damn….sometimes reallity is a bitch!

  14. fedup
    fedup said on August 26th, 2010 at 7:33 am

    i do a lot of online shoping ,ive never had a problem with the post office or ups or fedex ,they all have a lotta good people working for them as well as not so great employees im sure , i havent worked anywhere yet where everybody is perfect , that being said what this is really about is one company having an unfair advantage over every other package company … ups vs fedex the money is not distrubuted evenly if you compare them , ups pays a lot more in labor and still turns a great profit it can be done ,fedex labor is under half what ups puts out …i know fedex isnt in business to give me a job, theyre in busness to make money ,as im not only working for fedex to keep them in business, im working for them to make me money as well !!! thor i know your a republican which means your probably not for labor .. but we need organizations such as the teamsters to collective bargain and help distrubute the wealth in this country … after all labor as well as customers is what makes them money, they get rich off our backs , fair distrubution of wealth too much to ask for?????

  15. Bewildered Housewife said on August 27th, 2010 at 2:47 am

    FedEx does not have an unfair advantage over every other company. They have an advantage in that they have not been infested by unions. The reason FedEx exists is because of labor unions which eventually destroy a company and degrade the service or product in question to the extent that a competitor can step in and gain market share just by doing what the unionized company was supposed to.

    If UPS is so profitable, why are they seeking a bailout? They won’t be around for much longer in that case as the gov is a run’in out of money. Unionize, I dare you. If you are lucky, you will still have a job.. but many won’t.

    We do not need to distribute the wealth in this country – start your own company if you want to be wealthy. What makes you think you are entitled to a damn thing? What have you done to deserve anything?

  16. mustang
    mustang said on August 27th, 2010 at 11:17 am

    Does anyone know the background to this. FedEx as currently situated cannot realistically have the option to unionize. They are governed by the RLA, not the NLRB. This is because despite only 7percent of their workforce works with planes, they deem themselves an airline. Does UPS have planes, yup! But they are under the NLRB. FedEx is under RLA regulations (only shipping company that has this protection). Under this oversight, to unionize, they would have to have a national vote on the unionization and it would have to be a majority (including non-voters). If you needed a majority in the presidential vote counting non-voters, no one would of ever been elected. Want to talk about special privledges, in 1996, FedEx was given an exemption in the RLA for them to continue being there, thus allowing them to stay union-safe. This legislation would FIX the special treatment, not give it to the teamsters. FedEx has stalled this legislation multiple times, even by threatening to not make future orders from Boeing. I love the lies that are abound against labor when it’s FedEx gaming the political system.

  17. Amy Sanders said on August 27th, 2010 at 11:46 am

    In Texas where I live there isn’t a big union presence. But I have friends up in Michigan and if you want to see how unions have dragged down an economy, just go up to the Flint, Michigan area.

  18. enderby
    enderby said on August 29th, 2010 at 8:17 am

    UPS is absolutely dismal in their service. Let them go under. Unfortunately, UPS management was asked by the Feds to give advice on how to help business dig out of the recession. Now we have UPS entitlement. Surprised?

  19. mvsAndy
    mvsAndy said on August 30th, 2010 at 10:29 pm

    Thor…what position in management do you hold at fedex. Typical management bull crap…diverting the subject to the post office. For your information it was the post office that bailed fed ex’s azz out of bankruptcy in 2001…..and the shipping competitors cried wolf then. Whats good for the goose is good for the gander. Now back to the post office your information gathering is flawed, we don’t have closets. But we have a strong union and we have kept our competitive postage rate lower than any other country on this earth. Do your research before before you push your Rush Limbaugh propaganda here. The only problem I have seen with the post office is privatizing so if you think your spending to much to have your viagra shipped to your door the blame is the outsourcing.

  20. mvsAndy
    mvsAndy said on August 30th, 2010 at 11:03 pm

    USPS, FedEx Reach Pact That Competitors Call Unfair

    By Larry Riggs
    Amidst complaints by competitors, the U.S. Postal Service and FedEx Express formed a seven-year alliance to share certain services. The deal is worth $7 billion.

    Under the agreement, the USPS will buy space on FedEx airplanes to transport Express Mail, Priority Mail and First Class Mail. FedEx will place overnight service collection boxes at post offices nationwide.

    Emery Worldwide Airlines, a unit of CSF Inc., is going ahead with a lawsuit filed last Friday in the U.S. Court of Federal Claims. Emory was unsuccessful in trying to get the court to issue a restraining order that would keep the deal from moving forward.

    USPS spokeswoman Rita Peer said the court did not say the deal couldn’t move forward. “If postal management thought there was any chance this wouldn’t go through, they would not have made the alliance with FedEx,” she said.

    The Emery complaint alleges that a sole source contract with FedEx would violate the Postal Service’s own procurement regulations. Those regulations require that all purchases over $10,000 “must be made on the basis of adequate competition whenever feasible or appropriate,” and that such a contract would violate the Postal Service’s regulatory requirement to provide ” fair and equal treatment” to all potential suppliers.

    The United Parcel Service plans to ask Postmaster General William Henderson to let it review the FedEx/USPS contracts, which the Postal Service said were not competitively bid, it was reported. The contracts met criteria for sole-provider agreements, the USPS said.

    The USPS will pay the Memphis, TN-based FedEx approximately $6.3 billion over seven years for access to the FedEx national air transportation network. The pact will provide one integrated national air transportation network for the Postal Service. The agreement goes into effect in August.

    After announcing its pact with the USPS, FedEx said it plans to add 500 pilots and 1,000 mechanics and handlers to its work force. FedEx said it would need the pilots to handle the increased traffic created by the deal.

    The retail portion of the alliance lets FedEx place self-service collection boxes on postal property. It will be launched as a test in February. The estimated value of this part of the agreement could reach $232 million. This non-exclusive business concept will be open to any company that offers overnight package service with a national reach.

    FedEx and the Postal Service plan to keep competing and maintain separate services. USPS won’t handle FedEx shipments, nor will FedEx take care of U.S. mail.

    The postal service renewed the contract for another 6 years at an estimated 8 billion dollars. Plus additional cost to outsourcing of the handling of the mail. Here is some food for thought on the original 7 billion dollar contract that good ole (Bush regime) Postmaster General William Henderson after signing, he resigns and takes a job with Fed Ex……I feel for the employees who work under this corporate greed, but I place Fed Ex right up there with Walmart….where did all the Sam Walton’s go

  21. Chris
    Chris said on August 31st, 2010 at 3:36 am

    I think it’s fairly ridiculous that some UPS drivers make as much as $80K a year (in my area, that’s more than double the household average) to drive a truck in circles around town when we’ve got cops, nurses, firefighters, teachers, engineers, etc. that would be lucky to make that much in a single year. Unions are poisonous to the economy, they’re exactly what ruined General Motors and Chrysler and damn near ruined Ford as well. Folks, we live in a global economy now and we cannot afford to be inefficient and pay people more than what their job is actually worth based on organized blackmailing of company management.

  22. John Michael
    John Michael said on September 1st, 2010 at 1:54 pm

    Unions brought us the minimum wage, double pay holidays, overtime, ended child-labor, and they brought us what we now consider the weekends. Lame. They need to stay out of our way so that my boss can make more money by working me harder and keep my wages down, because work isn’t what should be valued. Having money is the American Way! Organized labor = organized crime.

  23. taoist meditation said on September 2nd, 2010 at 2:28 am

    The public needs to know what is really going on and if you love to gamble you are sure going to love getting on airlines that send their work overseas. This needs to end now but the greed knows no boundry.

  24. Steve
    Steve said on September 2nd, 2010 at 11:12 am

    Thor,
    You are arguing incorrectly that FedEx will be somehow be mandated to unionize its employees or that the FedEx employees will have no choice. The law merely removes the RLA provision that makes it harder to unionize.
    Will reliability be hit? Maybe. Will cost be hit, most likely. Will the unionization destroy the company? Maybe. Do they have to unionize? No way.
    When Japanese carmakers built their plants in the US, most of them voted against unionization because they were treated well. Those plants are the most reliable and productive large manufacturing plants in the nation. FedEx can do the same thing.
    What FedEx needs to do here is to treat their employees well to reduce the demand for unionization. They could start an internal PR campaign to let their workers know just what percentage of UPS’ employees are unionized, how low their pay is before they make it to a union spot (instead of being a part-time employee with low pay and no benefits while waiting for a spot to open up).
    You use the Post Office as an example of unions sucking the life out of a company. Well…the Post Office is NOT a company. It is a government agency and the courts have ruled that government employees have a property right to their jobs making it much more difficult to fire them.

  25. ex-express
    ex-express said on September 2nd, 2010 at 3:14 pm

    Airline employees are union.Whats the big deal if fedex workers get to vote station by station for union representation I say let em go for it . And there is a big defferance .working for fedex air and fed ex ground about 20,000.dollars a year in pay and rare if no benefits for the ground drivers.Fed ex is not living up to their corporate responsibilities.They did when they started out but since buying roadway package express and turning it into fed ex ground they are abusing the little guy and the sad thing is the little guy works for them.Fred Smith open your eyes what happened to you .you were the greatest at one time.

  26. zmanz
    zmanz said on September 4th, 2010 at 8:00 pm

    It’s quite a simple process – those who claim to have worked for both union and non-union worksites are verifiably lying. They’d have something to do with their time other than try to one-up others over the internet by saying they’re better than someone else.

    Now to the matter, its simple economics 101. Anyone with a mucky public high school education can understand these trivial matters, and that’s that with regulation come the liaisons, lawyers, and bureaucrats – “created” jobs for the public sector. This means a certain price has to be upped somewhere to afford their inefficient, lousy operations. The fact that our corrupt spend-friendly government is trying to more or less forcibly overtake one of our precious bastions of a private sector shipping company is frankly disturbing. Who do you think is going to foot the bill for all of this? I’ll give you a hint – just because prices didn’t go up for the company’s services doesn’t mean somewhere else will stay “low”. TAXES. The same taxes we already have to pay knuckle-dragging communist high school teachers, mouth-breathing corrupt court administrators, and weak-minded fools who believe welfare is a lifestyle as a substitute for work. For those of you who’ve paid attention, there are a few airliners that had unions added to them. As of late they’ve added “legacy costs” to their operational procedures which is nothing more than these publicized union weenies crying to congress about their pension plan not paying like their original job. So where did the costs go? Facility tax, ticket price and tax, and even some form of tax somewhere.

    Now I know all of you high-speed pro-union and pro-government control will have lots to say of how “I’m wrong” or “I’m a [insert four-letter-word here]” for being “anti-progess” or against business, but try thinking critically about any matter for a minute. You may be surprised what common sense tells you that the idiot box you keep on MTV all day will not.

  27. MakeWay
    MakeWay said on September 9th, 2010 at 12:08 am

    Come on, if UPS is seeking a bail out, it would be wise of Fedex employees not to unionize? Eventually they’ll go broke. How UPS would ever get a bail out is beyond me. Let them restructure and fix the problems. Union labor is ALWAYS too expensive. How can a company afford higher salaries, early retirement and healthcare for the rest of their employees lives? You do the math. It doesn’t work! To support one employee you need 1,000 working to feed that retired employee. I own a business and I have to scrape together my healthcare and savings so should everyone else. I provide people fair healthcare, but no way could I do early retirement and healthcare forever. Fedex has much better rates both domestically and internationally which is why I personally chose them to do $100K per shipping just this year. They have my business because they make the right decision to give their customers (the people who pay for everything!) the best deal possible.

  28. Fedup Also
    Fedup Also said on September 10th, 2010 at 8:10 am

    I am also FedUp with all the idiots that keep trying to push the union on most of us employees that DO NOT want it! Like the man has said let the employess decide! If things where so bad here at FedEx then we would be Unionized. Thor is 100% correct when he said that Teamsters only wants FedEx to pad it’s coffers to pay for all the wasteful spending at an unorganized organization.
    I do not want to give my hard earned money to an organization that runs through money faster than the US Gov’t does!

  29. Boomer136
    Boomer136 said on September 16th, 2010 at 12:27 pm

    Ok. “It always amazes me that some people just can’t seem to grasp the concept that if you raise costs on businesses the prices they charge consumers for services will go up.”

    First price determination has to do with a lot more than costs. Then the idea that ‘labor’ is a widgit and a labor hour by one guy equals the same productivity as the next guy is an interesting model used by students. Time to put the big boy pants on.

    “Why don’t you quit?” and so forth. Many do. If you can get paid more for your talent, that’s what you do. Other factors intervene so sometimes the labor market gets ‘sticky’. Again with the ivory tower school model. Just because your professor at Wharton said so, doesn’t make it so.

    The one thing missing from your article are citations. Where are your sources? Wikipedia cites better. Just for starters:

    http://www.consumerreports.org/cro/money/shopping/shopping-tips/fedex-vs-ups-vs-the-postal-service/overview/package-delivery-services-ov.htm

  30. bill
    bill said on September 18th, 2010 at 3:53 pm

    This is not forcing anything on anyone. your comment that this is going to force a union on a company is FALSE. All this legislation does is give the same minimal rights to FEDEX employees as the rest of the country!

  31. jason
    jason said on September 18th, 2010 at 5:31 pm

    Seems like upper management dosent want to give up some of the money that should be paid to the drivers/sorters what a joke that fed ex drivers are classified as pilots and train engineers so they get a break so the top executives can keep raking in the money and hide from a union vote the brown bailout is written by Fed Ex executives to fool you all into thinking they are poor and cant compete if the drivers/loaders become union what a joke and its on them.No Rhetoric, No Spin, No Multi-million Dollar Campaign to Distort Reality…

    JUST THE FACTS

    Despite its efforts to distort the truth, FedEx Express can’t avoid the facts: its drivers do the same job as every other driver in the industry, including UPS drivers. The Railway Labor Act (RLA) must be amended to eliminate the special treatment received by FedEx due to the unequal application of labor laws.

    Ten Very Basic Facts
    Fact: Despite the name-calling by FedEx, this issue is about fairness in competition and correcting an exception for FedEx.
    Fact: UPS wants Congress to eliminate special treatment provided to FedEx and place FedEx Express drivers and other ground employees under the appropriate labor law, the National Labor Relations Act.
    Fact: UPS is the strongest company in its industry and certainly has not approached Congress for any type of assistance. Even in this recession, UPS has seen a smaller decline in its air business than that experienced by FedEx. UPS is not seeking a “bailout” from Congress … the company is working to eliminate an exception given to FedEx.
    Fact: FedEx Express is the only company in the express delivery industry with its drivers, loaders and sorters governed by the RLA, a law designed for airlines and railroads. FedEx uses its special exception status as a selling point against competitors, suggesting its coverage under the RLA makes it more reliable.
    Fact: The notion that its drivers should be covered by the RLA because FedEx was founded as an airline is illogical. The work that’s performed, not your history as a company, should determine which law applies to your employees.
    Fact: UPS and FedEx have similar operations and both transport packages by airplane. However, your package isn’t delivered to your door by a pilot of an airplane. The package must be placed on a truck and is driven by a delivery driver to your place of business or home.
    Fact: UPS and FedEx both deliver approximately 2.5 million express packages each day. FedEx’s claim that UPS ships 85 percent of its goods by truck is false. FedEx’s claim that only 6% of all UPS drivers carry express packages likewise is false; the correct number is 95%.
    Fact: FedEx currently has more than 100,000 NLRA-governed employees who are not unionized. Yet, the company is trying to convince the U.S. Congress and customers that amending the RLA will increase its labor costs. FedEx’s history doesn’t demonstrate that its NLRA-governed employees will be unionized. In fact, the only unionized FedEx employee group is its cadre of RLA-governed pilots.
    Fact: Amending the RLA will appropriately level the playing field in the express delivery industry. It is the role of Congress to ensure proper application of the law. That’s why UPS believes Congress is the proper forum to resolve inconsistencies.
    Fact: Telling the truth doesn’t cost anything…especially a multi-million dollar campaign.

    As part of its “multi-million dollar lobbying campaign,” FedEx stated in a June 9 press release that “UPS and FedEx are fundamentally different companies.” Really? Someone needs to read Fact #10.

  32. small business s e o said on September 19th, 2010 at 6:52 am

    I think their prices are too high already personally

  33. Danny Pryor said on September 19th, 2010 at 4:10 pm

    There was a time, perhaps 100 years ago, when unions played a vital role in assuring workers had fair wages and safe working conditions. With all the OSHA regulations in place, with all of the wage laws in place, with so much regulation, that role is no longer required. Further, I really believe the UAW caused Detroit’s demise, because people earning $55 – $75 per hour to run a pneumatic wrench just seems ridiculous to me. I make $85 an hour for a seriously skilled position as a web designer.

    What is the purpose of unions?

  34. Alan O'Lane
    Alan O'Lane said on September 21st, 2010 at 2:48 pm

    I am not against a Union Iam against government forcing a Union. What is to stop them from saying after FEDEX lets go for Wal-Mart or any other non Union area. I seen good and bad from a union ask the workers at Safeway they lost there 100 % coverage insurance and now it cost them to get it along with cost in benefits.

    So what this is about does the Government have the right to force a Public company to become a Union. You have vote you have no say and before ou get a pay raise your dues with be coming out of paycheck.

    The question is does the Governmetn have teh right to force a Union on anyone?

  35. Duane
    Duane said on September 23rd, 2010 at 8:41 am

    Removing the Dingle-Berries from Congress would be a giant leap towards restoring our nation to individual responsibilities, Stopping the free hand outs using tax payer dollars to shore up failed agencies, unions and business enterprises…………Hopefully, America will wake up by mid-term elections.

  36. JD Pete said on September 25th, 2010 at 11:36 pm

    Thor et. all, I think you might need to look at this from a different angle. Read my careful analysis on my blog, http://www.jdpetespeaks.blogspot.com. The post is called “Of ‘Bailouts’, Unions and Freedom” In some ways your right, Thor, but I think there is a bigger issue at hand. Then see my previous post as well, “The 30-Minute Post”, in regards to The Coming Aristocracy. As Jethro Tull says, “There’s more than one way to skin a cat!”

  37. JD Pete said on September 25th, 2010 at 11:47 pm

    P.S. – I cited you, Thor, in my blog. Hope that’s okay.

  38. payday uk said on September 27th, 2010 at 11:51 am

    These are all ways to pass on the burden of crisis to the common people so that the reach can continue to have their tea parties..

  39. wordgeist said on September 28th, 2010 at 11:37 pm

    Just great at the end who is going to pay for this

  40. Edward Wunder
    Edward Wunder said on July 15th, 2011 at 9:01 am

    Wow, Thor. Here I thought I was taking risks being honest and sharing facts on my persoal Facebook page. Thank you for sharing insightful information on “the costs of doing business.”

    Progressive Policies have taken us beyond our abilities to tax.

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