Congress is determined to promote the unionization of FedEx Express drivers by passing a bill that would change the labor status of those drivers. Rather than operating under the Railway Labor Act, FedEx Express would have to operate under the National Labor Relations Act (NLRA).
Under the rules of the Railway Labor Act, drivers can only join a union if there is national vote. Under the rules of the NLRA, however, drivers could vote to join unions in individual geographical areas.
Once the bill is passed by the Senate, union organizers will encourage drivers to vote for union representation, and it is likely that the majority of workers will do so. Should that occur, the labor costs for FedEx (where many drivers are independent contractors who own their routes) would skyrocket. In addition, the competitive edge that FedEx enjoys vis-à-vis UPS would vanish, for all UPS drivers operate under the NLRA.
It’s not surprising that UPS has been lobbying Congress to get FedEx Express classified under the NLRA.
FedEx is fighting back by accusing UPS on its website BrownBailout.com, that the federal government, in effect, is giving UPS a government bailout by supporting a change of rules for FedEx drivers. U.P.S. and the Teamsters union, however, have denied the accusations of FedEx and are planning a PR campaign to the present their point of view. The Teamsters represent about 240,000 UPS workers.
This is just another example of a Democratic congress doing the bidding of organized labor, and it portends bad times for Corporate America.
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Stephen: One minor clarification, should FedEx Express be put under the NLRA, then the Teamsters will be able to organize a LOCAL union. The Railway Labor Act requires a national union to be formed to avoid disruptions by locals which don't represent the majority of the employees. FedEx Express workers have consistently rebuffed national organizing attempts. This latest UPS effort in Congress is designed to encourage local organizing in order to disrupt service dependability, which is FedEx Express' business.
ReplyDeleteThank you for your straightforward analysis of the issue.