MrFedEx
Engorged Member
Since it's inception FedEx Express has successfully kept the vast majority of its workers from organizing by claiming it maintained a "separate network" to deliver its packages and was an airline, despite the fact that a large percentage of its parcels actually move exclusively by truck and never see an aircraft. Fred S has always claimed that allowing Express to be reclassified would threaten US commerce and cause tremendous disruption to the US economy. He made the same claim when FedEx pilots successfully organized under ALPA, and there was no effect on the economy except to fatten the bank accounts of pilots.
Smith has faced 2 big campaigns to reclassify Express, the first in 1996, and the second in 2010. The FAA Reclassification Act of 1996 included a specific exemption for FedEx after intense lobbying, and the protection language was inserted into the bill at literally the last minute. To beat back the 2010 challenge, Smith spent $21.1 million in 15 months to lobby against reclassification and called the proposed changes a "Brown Bailout". This is when he also threatened to yank a $6.7B order for 30 777s from Boeing with the option for 15 additional planes if Express employees were reclassified. In the end, he prevailed and the RLA gift was maintained.
At the time, Smith argued that "UPS does not handle their air shipments in a separate and distinct network that ties directly into their air operation as Express does". In other words, except for separate networks, there is NO difference between FedEx and UPS. Separate networks are what differentiates the 2 companies is what Smith has always maintained.(His own words).
Yet now, the Express and Ground networks have been COMBINED, exactly like UPS, which creates a totally unjustified competitive advantage for FedEx. Fred S and his underlings call this combination "a business innovation" and argue that nothing has changed, which is an utterly ridiculous assertion that is patently false. FedEx has been combining their operations for years and has always moved a large percentage of packages directly by truck, bypassing the airline component of Express. And now, FedEx is blatantly and openly combining Express and Ground into a hybrid business model that takes advantage of even lower wage Ground drivers and the "independent contractor" scam that exerts severe levels of company control over supposedly independent business owners. Ground drivers and contractors are held to corporate standards, blurring the lines between independence and total FedEx control. Another gift that keeps on giving.
FedEx spends big money to make all of this happen. Their head lobbyist is Trent Lott, former Senate Majority Leader, and his underlings include a veritable "Who's Who" of important former politicians, mostly Republicans. All of those millions pay-off handsomely as in the results of the 2017 Trump Tax Bill, for which FedEx pulled out all the stops and opened the bank vault. When the bill passed, FedEx saw its tax payments drop from $1.5B in 2017 to ZERO in 2018. Fred S promised to invest the savings into new equipment and employees. Instead, he plowed $3.6B into stock buybacks, largely ignoring another worthless promise.Probably a few more aircraft got added to the Executive Fleet as well.
Given the present Express business model it would seem inexplicable that FedEx would be able to maintain its RLA status for Express employees and its distinct and completely unjustified competitive advantage over rival UPS. Fred and his successors have bilked the US taxpayer, prevented employees from having any realistic chances at unionizing to improve substandard wages and benefits, and spent hundreds of millions of dollars working the US political system to preserve classification under the RLA. It's shameful, wrong, and an illegal interpretation of labor law(s). As a result, FedEx is able to keep compensation and benefits sub-par, prevent any meaningful labor organization, and maintain a highly advantageous non-level playing field in comparison to UPS. Fred and his operatives have direct access to the most powerful politicians whenever they want. Lott and staff personally know them and can directly call, pledge, and influence in order for FedEx to continue to have things "their way" at the expense of everyone else. Yes. Mr. Smith "Went To Washington", but it was for his own purposes, not the rest of us. "Sure. Mitch, we can get the family to Aspen for a McConnell family reunion. All you have to pay is the taxes for your own private jet services". These days, FedEx is mostly an executive "airline" for the political elite to use at their whim.
It's time for this charade to be exposed and ended once and for all.
Smith has faced 2 big campaigns to reclassify Express, the first in 1996, and the second in 2010. The FAA Reclassification Act of 1996 included a specific exemption for FedEx after intense lobbying, and the protection language was inserted into the bill at literally the last minute. To beat back the 2010 challenge, Smith spent $21.1 million in 15 months to lobby against reclassification and called the proposed changes a "Brown Bailout". This is when he also threatened to yank a $6.7B order for 30 777s from Boeing with the option for 15 additional planes if Express employees were reclassified. In the end, he prevailed and the RLA gift was maintained.
At the time, Smith argued that "UPS does not handle their air shipments in a separate and distinct network that ties directly into their air operation as Express does". In other words, except for separate networks, there is NO difference between FedEx and UPS. Separate networks are what differentiates the 2 companies is what Smith has always maintained.(His own words).
Yet now, the Express and Ground networks have been COMBINED, exactly like UPS, which creates a totally unjustified competitive advantage for FedEx. Fred S and his underlings call this combination "a business innovation" and argue that nothing has changed, which is an utterly ridiculous assertion that is patently false. FedEx has been combining their operations for years and has always moved a large percentage of packages directly by truck, bypassing the airline component of Express. And now, FedEx is blatantly and openly combining Express and Ground into a hybrid business model that takes advantage of even lower wage Ground drivers and the "independent contractor" scam that exerts severe levels of company control over supposedly independent business owners. Ground drivers and contractors are held to corporate standards, blurring the lines between independence and total FedEx control. Another gift that keeps on giving.
FedEx spends big money to make all of this happen. Their head lobbyist is Trent Lott, former Senate Majority Leader, and his underlings include a veritable "Who's Who" of important former politicians, mostly Republicans. All of those millions pay-off handsomely as in the results of the 2017 Trump Tax Bill, for which FedEx pulled out all the stops and opened the bank vault. When the bill passed, FedEx saw its tax payments drop from $1.5B in 2017 to ZERO in 2018. Fred S promised to invest the savings into new equipment and employees. Instead, he plowed $3.6B into stock buybacks, largely ignoring another worthless promise.Probably a few more aircraft got added to the Executive Fleet as well.
Given the present Express business model it would seem inexplicable that FedEx would be able to maintain its RLA status for Express employees and its distinct and completely unjustified competitive advantage over rival UPS. Fred and his successors have bilked the US taxpayer, prevented employees from having any realistic chances at unionizing to improve substandard wages and benefits, and spent hundreds of millions of dollars working the US political system to preserve classification under the RLA. It's shameful, wrong, and an illegal interpretation of labor law(s). As a result, FedEx is able to keep compensation and benefits sub-par, prevent any meaningful labor organization, and maintain a highly advantageous non-level playing field in comparison to UPS. Fred and his operatives have direct access to the most powerful politicians whenever they want. Lott and staff personally know them and can directly call, pledge, and influence in order for FedEx to continue to have things "their way" at the expense of everyone else. Yes. Mr. Smith "Went To Washington", but it was for his own purposes, not the rest of us. "Sure. Mitch, we can get the family to Aspen for a McConnell family reunion. All you have to pay is the taxes for your own private jet services". These days, FedEx is mostly an executive "airline" for the political elite to use at their whim.
It's time for this charade to be exposed and ended once and for all.
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