Dems may seek change in labor law affecting FedEx

Discussion in 'The Latest FedEx Headlines' started by cheryl, Jun 28, 2007.

  1. cheryl

    cheryl I started this. Staff Member

    Dems may seek change in labor law affecting FedEx - Reuters

    An expected amendment to aviation legislation on Thursday could make it easier for unions to organize ground workers at the express operations of FedEx Corp., congressional and industry sources said.
  2. Dand_E_Don

    Dand_E_Don New Member

    It passed the house. It still must pass the Senate and the White House. The President has threatened a veto if the bill contains language for the air traffic controllers. Still an uphill battle. But ground is being gained. Maybe the playing field will level out after all - in about 10 years...
  3. RockyRogue

    RockyRogue Agent of Change

    Haven't heard word ONE anywhere about this. The article is an interesting read from every viewpoint, which is part of why I prefer Reuters :thumbup1: over the Associated Press (AP) :thumbdown. I agree its an uphill battle. However, if the law IS passed this year or next, I see it being less than 5 years before the playing field is levelled. I see FedEx being in bankruptcy by or even before that 5 year mark. Then again, I'm told I'm waaaaaaay the h*ll outside my depth when I talk about economics. -Rocky
  4. hoser

    hoser Industrial Slob

    ..assuming FX express employees organize. bear in mind that not every work place is like UPS, there are places unlike UPS that fix equipment when it's broken, take their employees concerns very seriously, and treat them very well, too.

    fx bankrupt in five years is like saying the national reserve will run out of cash. it's preposterous, fedex is here to stay. their business model proves it enough.
  5. RockyRogue

    RockyRogue Agent of Change

    Their business model is flawed, sir. If and when the Ground division is forced to classify drivers as employees rather than contractors, they're in trouble...IMHO. Employees can unionize, contractors can not. -Rocky
  6. athena

    athena Member

    I agree with Rocky. This is just one more hit for FedEx. They are currently being sued by drivers who claim they are employees not independent contractors, the union certification from NLRB, and one driver has even won unemployment benefits in a court case where the judge agreed that the driver had been inappropriately labeled as an "independent contractor". Additionally, there is legislation that is being considered that would make it easier to organize a union and negotiate a first contract.

    For years, FedEx has been benefitting from the near impossibility of a strike by the drivers (due to the airline legislation they have been operating under). This is a major negotiating tool used by unions. If this legislation passes then FedEx will be making some major changes to their business model.

    Finally, I find it hard to believe that the FedEx drivers will not unionize. They have already started the process and I doubt their would be so many lawsuits if the employees were so happy.

    FedEx better learn to play nice and quick.
  7. Dand_E_Don

    Dand_E_Don New Member

    I also find it hard to believe the drivers at FDX won't organize. Once a company's employment reaches a critical mass, then you are guaranteed to have pockets of dissatisfaction of varying sizes. A payroll as large as FDX's surely fits that mold.

    As for FDX complaining about UPS using the legislative process against them, let's go back to 1996 when Freddie Boy got legislation snuck through that entrenched FDX under the Railway Labor Act - even after they morphed into the UPS wannabe clone they are now. The actions of congress are actually correcting a wrong that FDX has been using to their advantage for too long.
  8. hoser

    hoser Industrial Slob

    and fedex ground comprises how much of fx's total operating revenue?

    our armchair analysts need to stop obsessing over fedex ground and realize that there's fedex - trade networks, supply chain, custom critical, freight, and yes.... express, which all comprise a much larger piece of the pie than ex-RPS.