As FedEx, UPS slug it out, rural service at stake

Discussion in 'The Latest UPS Headlines' started by cheryl, Jul 4, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    As FedEx, UPS slug it out, rural service at stake - Google

    At issue is whether FedEx Express, the company's delivery division, should be reclassified as a trucking company, like UPS, or retain its federally granted status as an airline.

    If FedEx loses its special status under a measure now before Congress, its employees could more easily unionize. That in turn could drive up costs for the Memphis, Tenn.-based company, forcing it to trim services in rural areas where costs are highest and profit margins thinnest, said shipping industry expert Satish Jindel.

    UPS, which says it merely wants a level playing field, dismisses warnings of potential service cuts as fearmongering meant to bolster FedEx's bid for special treatment.