Ken Hall's Letter to the Washington Times: Rules apply to FedEx

Your editorial "The fate of FedEx" (Opinion, Thursday) mischaracterizes a House amendment to Federal Aviation Administration reauthorization. The bill is now before the Senate.

You describe the House amendment as a measure that would apply "only to FedEx Express." This suggests that the House singled out FedEx Express for unfair treatment -- an interpretation that is exactly backward.

FedEx Express has for years taken advantage of a loophole sneaked into legislation at the 11th hour. The loophole lets FedEx Express evade the labor law that its 46 competitors must follow. FedEx Express is the only company in the freight and package-delivery industry that is given such a preference. Congress is set to restore fairness even as the company resorts to threats and intimidation to keep its special status.

FedEx has a long history as a bad corporate actor. The company is fighting efforts by Congress to make it play by the same rules as its competitors. Meanwhile, it also misclassifies thousands of drivers in its Ground Division as independent contractors, forcing taxpayers to pick up the costs for their unemployment and health care. Last month, eight state attorneys general sent a letter to FedEx questioning the way it classifies its Ground Division drivers.

Now FedEx is leveraging American jobs and threatening to cancel a $7.7 billion contract with the Boeing Co. if Congress forces it to operate under the same rules as every other package-delivery company in the country.

FedEx undoubtedly will try again to win favored treatment by making lavish campaign contributions to lawmakers and touting its track record of appointing them to its board when they retire.

The Teamsters have seen firsthand how a company can be profitable and live up to its corporate obligations to take care of its workers. Many UPS employees are represented by unions and are earning good wages and benefits. UPS still delivers packages on time.

Frankly, I'm a little surprised that such an outspoken advocate of free-market economics as The Washington Times would side with FedEx on this issue. FedEx has long enjoyed the advantages of an uneven playing field. Now the Senate is considering a bill that could remove government interference from the freight and package-delivery industry and put all 47 competitors on an equal footing.

It's time for Congress to restore fairness to the overnight package delivery industry and make sure that all competitors play by the same set of rules.

KEN HALL
Vice president
International Brotherhood of Teamsters

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Comments

  • 7/16/2009 2:40 PM Franklin Banker wrote:
    Ken Hall has said this as well as it can be said, but just wanted to add that most of the FedEx drivers I knew during my years as a UPS driver are IN FAVOR of being organized. Every one of the drivers I talked to during the last few years before I retired wanted to be organized and get a good employment contract like we at UPS have always had.


    The new legislation will also open the door for union organization at FedEx that does not exist under the current classification.

    I believe that is the biggest reason FedEx officers are squaaking about the new bill. They simply do not want to give up any money to the workers that is now dedicated to their bonuses and stock options.

    Don't wanna sell that yacht!

    Fair play for all competitors in the freight industry is a long time coming. So, if FedEx cancels their order with Boeing, maybe the public will make the decision to work with UPS in many cases due to their stability and reliability.

    Threats and intimidation; The main tools of typical corporations in America. FedEx is no exception.

    It is all "Sour Grapes" FedEx!
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  • 7/22/2009 4:15 PM Phil wrote:
    Let FedEx threaten Boeing, because when the legislation is pasted and FedEx cant prevent loss of revenue do to their customers opting to go with UPS because FedEx is too expensive, UPS will need to contract with Boeing for more jets to keep up with its groing business and revenue due to FedEx's lost customer base. Too bad!!!!!!!!!!!!
    Reply to this
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