Actually, ddomino, I thought it was the opposite. UPS functions as a trucking company and operates under the watchful eye of the National Labor Relations Board (NLRB). Fedex, which is considered an airline, operates under the Railway Act. In either case, you are right A union vote for Fedex would have to be for all employees in a certain category, such as drivers. A trucking company can be organized one terminal, or center, at a time.
As for the rest of your post, I agree why would we want them? Fred would never part with his ground unit. He is making WAY too much money and I think he loves the fact that he is hitting us where it hurts taking away our ground business. But the one thing that makes me nervous is I believe that small package transportation is moving away from a specialty service and becoming a commodity. And that is bad because no one buys a commodity based on any thing else but price. For example, you may be willing to pay 25% to 30% higher for a Sony flat screen TV because of Sonys track record of quality and all the extra bells and whistles that comes with it. However, you would never think of paying 25% more for gasoline. Typically, gas is a commodity and the product with the lowest cost to the consumer wins. I sold LTL before I came to work for UPS and that industry has definitely become a commodity. The only way to win business was to offer a lower price. Eventually, your margins shrink to the point that you are just making enough money to survive.
That is why I am so high on our Supply Chain concept. That is totally a specialized product and UPS can charge a premium for this service due to our name, as well as for the services that we offer. I dont see how supply chain management could ever become a commodity..
