FedEx not going to buy planes

Discussion in 'UPS Discussions' started by unionman, Mar 24, 2009.

  1. unionman

    unionman New Member

    FedEx (FDX) said the purchase of new planes depends on a bill pending in Congress.
  2. pretzel_man

    pretzel_man Well-Known Member

    I encourage all UPSers and Teamsters read up on this and understand what FedEx is saying.

    They are under different labor laws than UPS because they started as an express company. Legislation will put FedEx and UPS under the same labor laws and make it easier for them to be unionized. This is a big win for the Teamsters and levels the playing field for UPS.

    FedEx is now threatening to NOT buy Boeing planes if the law is passed. This pits Boeing and GE against UPS, and also pits the Teamsters against the Machinist union.

    All because FedEx is threatening to buy Airbus planes if the legislation is passed.

    Here is a link:

  3. pickup

    pickup Well-Known Member

    great link, pretzel man, Also thanks to the original poster. Check out the link that pretzelman put up. I'll give one thing to fed ex management, they're pretty crafty.
  4. Livin the Dream?

    Livin the Dream? Disillusioned UPSer

    Honorable victory occurs when you excel over your competition, not when your competition falls prey to the same shackles you happen to wear.
  5. brett636

    brett636 Well-Known Member

    Considering UPS exceeds Fedex both in number of packages delivered and on time service commitments you are right that we have already achieved the honorable victory.

    The inequality in the industry is Fedex's current classification under the federal railway act. I am an air driver, and I am doing the exact same job as the fedex express drivers in my area. We both pickup air packages that get put on a plane (or truck depending on distance) which all get delivered within one to two days. Only issue is UPS is currently union and fedex gets special treatment when it comes to the unionization of its workforce. I am a free market guy, but I believe it goes both ways. If fedex truly believes they are treating their employees right then they should have nothing to worry about. Happy employees don't vote in unions. Which explains why fedex is fighting this bill tooth and nail.
  6. cancun

    cancun New Member

    This issue will be a major challenge to FDX in the next few years and certainly may create a more advantageous advantage for UPS. And rightfully so. Honorable victory is defeating your opponent on level playing field. And we have fought for decades to level the field. Our efforts maybe paying off in the near future.
  7. some1else

    some1else Active Member

    there is alot more in this bill than simply card-check.

    "An outpost of the Labor Department, the mediation service, will set the terms of all new labor contracts in the United States. It will do so under provisions that are undefined under the act. The FMCS will have sole authority to pick the arbitration panel, which will have the power to draft, on its own initiative, detailed contract provisions"
    how do you think this is going to work out?
  8. brett636

    brett636 Well-Known Member

    Maybe I am mistaken, but I think we are discussing two different labor bills under consideration. You are speaking of the Employee Free Choice Act, but this thread is in discussion over the FAA Reauthorization Act.
  9. PobreCarlos

    PobreCarlos New Member


    I believe brett636 is correct...."card check", or the so-called "Employee Free Choice Act" has nothing to do with the legislation in question (and which FDX is vehemently fighting!), which involves placing FDX Express under the auspices of the NLRB (FDX Ground is already under it).
  10. MrFedEx

    MrFedEx Engorged Member

    FedEx is upset over both bills, but particularly the FAA Reauthorization Act, which would eliminate the RLA exemption that has kept us non-union for so long. It is just like Fred Smith to throw his weight around and have a freaking tantrum by threatening to buy Airbus planes. The big baby has had us under his thumb for 35 years plus enjoyed competitive leverage over UPS for that same timeframe. He has saved himself hundreds of millions of dollars, screwed his employees, and had an totally unfair business advantage that allowed him to keep FedEx rates unrealisticly low and profits extremely high. What a hypocrite this guy is.
  11. some1else

    some1else Active Member

    oh, i didnt see they where trying to organize that way. that seems pretty obvious that if two companies do the same job they should be regulated by the same laws.

    card check on the other hand... i dont think anyone wants the labor dept. appointees writing contracts without review
  12. brett636

    brett636 Well-Known Member

    The EFCA already has one foot in the grave. Senator Arlen Specter has stated he will not support it making a republican filibuster possible. This bill(FAA reauthorization act) we are discussing is much less controversial and therefore has a better chance of passing. I'm hoping it makes it through.
  13. drewed

    drewed Shankman

    Two very different items, but they go hand in hand if the FAA bill passes Fedex MAY become union but in conjunction with the EFCA its almost gauruanteed must less of a hassle to unionize
  14. pickup

    pickup Well-Known Member

    I think it is a bullsh-t threat. If it were cheaper to buy the french planes , they would have ordered them in the first place. If the bill passes and they follow through and cancel the boeing order, the publicity would not be positive for them.
  15. drewed

    drewed Shankman

    Well I dont think the publicity will good for them either way, Boeing is cutting jobs at home (the US) and theyre going to spend money and put a foreign worker to work..
  16. PobreCarlos

    PobreCarlos New Member

    I didn't read about any direct threat by FDX that they would buy European....rather, just that, if they were "organized", they might not need more planes period. It seems that others are making the assumption about the threat of purchases being made abroad if FDX is brought under the NLRB.....although that may be a good assumption.

    Agree that there ought to be a better chance of this legislation passing, although it will come down to who's got the most political pull - FDX or UPS. And that could be a close call.
  17. drewed

    drewed Shankman

    At this point.....I think UPS has more pull and weight then FDX does politically and legally, a lot of politicians are looking seeing their constituents being screwed over, suing their employer over the legality of the contractor system and not seeing reelection if they dont attempt to do something about it. UPS is lobbying hard to get this done.
  18. Livin the Dream?

    Livin the Dream? Disillusioned UPSer

    It is a brilliant move by FedEx, if you define brilliant as taking strategic positions to further your position in a positive way. I do.

    It will also work.

    I guess I was lucky - My parents beat it into me that life isn't fair when I was 6.
  19. Jones

    Jones fILE A GRIEVE! Staff Member

    And I assume your ex wife really drove the point home?
  20. airbusfxr

    airbusfxr New Member

    FDX is bluffing and congress will call them on it. FDX pilots are the only unionized work group over there and the rest are sheep. I have many friends at FDX and they would rather make less money, have less benefits, AND pay for health care than become union. I am stunned when we get together because they have lost vacation time and pension and think UPS Aircraft mechanics are the ones on the losing end.