FedEx Faces Higher Unionization Risk Via Legislative Proposal

http://blogs.barrons.com/stockstowatchtoday/2009/05/22/fedex-faces-higher-unionization-risk-via-legislative-proposal/

May 22, 2009, 10:00 am
FedEx Faces Higher Unionization Risk Via Legislative Proposal
Posted by Bob O'Brien

FedEx (FDX) is considered an airline, for the purposes of regulatory oversight, even though most travelers probably wouldn’t want to book a flight to Memphis on one of its jets. At least, no passengers who saw ”Cast Away” are going to be less than anxious to. For one thing, there’s no meal service.

But FedEx’s days of being viewed as an airline by government regulators might be running short. A legislative proposal has suggested transferring FedEx’s regulatory status to the National Labor Relations Board from the National Railway Labor Act.

The implication for FedEx: the move could make it easier for labor unions to organize its pick-up and delivery personnel.

The initiative is part of a broader piece of legislation approved by the House of Representatives this week authorizing $53 billion in appropriations to finance the Federal Aviation Administrationthrough fiscal 2012. The provision governing FedEx’s regulatory oversight would allow employees of the company’s Express unit to vote locally to join unions; they currently have to hold a national election. The change could make it easier for the Teamsters union to organize FedEx employees. Currently, pilots at the company are the only category of worker that have union representation.

Rival package delivery concern UPS (UPS) thinks this is a splendid idea. UPS already is governed by the NLRB; 240,000 of its workers are members of the Teamsters, making UPS the Teamsters’ biggest single employer. UPS characterized the legislative initiative as a move to level the playing field, and says that two companies competing in the same business should have equivalent regulatory treatment.

FULL story at link.