FedEx, UPS Brace For Battle On Labor Issue, Despite Delay
October 08 2009 - 12:31PM
Dow Jones News
Debate has been delayed over a proposed labor provision that has
pitted FedEx Corp. (FDX) against United Parcel Service Inc. (UPS),
but the two package-delivery heavyweights remain girded for an
inevitable fight.
The U.S. Congress last month put off consideration of a bill
reauthorizing the Federal Aviation Administration by opting to
continue funding the agency through Dec. 31 under its current
authorization. The existing FAA bill had been set to expire Sept.
30.
"We're in a marathon," FedEx spokesman Maury Lane said. "This
isn't a sprint."
A House version of the reauthorization bill contains a provision
- heatedly opposed by FedEx but supported by UPS - that would make
it easier for some FedEx truck drivers and other employees to
unionize by putting them under the same law governing UPS
employees. The provision isn't included in a Senate version.
FedEx launched a high-profile effort over the summer to muster
opposition, taking the unusual step of openly attacking a top
competitor, namely UPS.
The campaign has included a Web site and videos mocking UPS'
"Brown" marketing slogan by describing the provision as a "Brown
bailout."
Lane hinted that FedEx has more in store when it appears that
Congress is getting closer to debating the issue, saying he's "sure
the volume will heat up on both sides."
But he also said FedEx has no plans to let up in the interim on
its behind-the-scenes lobbying or its publicity campaign. Among
other initiatives, FedEx last week launched a contest on its
"Brownbailout.com" Web site, complete with $1,000 prizes, asking
people to submit videos describing why they deserve bailouts.
UPS, which has dismissed FedEx's "bailout" characterization as
ridiculous, hasn't let up on its lobbying either.
It contends the issue is one of basic fairness, saying employees
doing identical jobs should be governed by the same labor laws.
"We're not concerned about this three-month delay (because)
we're confident that, sooner or later, Congress is going to address
this issue," UPS spokesman Norman Black said.
Black said UPS is "talking to people who will be making this
decision" but isn't planning a FedEx-style publicity offensive
around its position.
"This isn't a public-opinion poll," he said. "We're not
launching any kind of campaign to attack our competitor, such as
they have done to us."
-By Bob Sechler, Dow Jones Newswires; 512-394-0285;
bob.sechler@dowjones.com