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.

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