Archive for the 'Unions' Category

17
Jul
09

UPS vs. FedEx: Why UPS is wrong, and FedEx is right

There will be a little bit of History here, so bear with me.  George Will goes more in depth on this one.

The basis of the current conflict between UPS and FedEx has to do with the National Labor Relations Act and the Railroad Labor Act.  The NRLA, which applies to UPS as it was a Trucking Company first, makes all unions of the employees Local Unions.  The RLA, which applied to FedEx as it was a Cargo Airline (And thus eligible for the RLA after an ammendment in 1936 which made Airlines part of the RLA) means that all Railway and Airline Unions must be national.

While both UPS and FedEx use Cargo Jets and Trucks, UPS is a Trucking Company First, while FedEx uses it’s trucks to feed it’s airline.

In 1981, UPS expanded into Air Travel.  In the 90’s, UPS, with the assistance of FedEx, tried to be Re-Categorized as an Airline for the sake of the RLA.  Sadly, they failed.

Now, UPS is trying to take apart the RLA, and subject FedEx to the NLRA.  This would break up the streamlined, integrated, efficient system that makes FedEx so much cheaper then UPS, and force costs up.

This, in spite of the fact, that FedEx pays their workers better with better benefits and lower costs, in full accord with the Ford Ethos (Highest Wages, Lowest Costs, Best Quality).

So, the solution?  Abolish the NLRA, and apply the RLA to ALL businesses in the Country.  It will bring wages up, costs down, and increase quality.  In most areas that is.

Otherwise, you will have more corruption like the Teamster strong arm tactics which are driving UPS to force the same plague on FedEx.




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