Posted on 03/27/2009 8:12:29 AM PDT by SmithL
FedEx could cancel contracts for $6.7 billion in American-made planes if Congress makes it easier for unions to organize the delivery giant's workers.
In a Securities and Exchange Commission filing on Friday, the Memphis-based delivery company disclosed that future commitments to buy Boeing 777s are contingent on FedEx Express' continued coverage by the Railway Labor Act.
The disclosure serves as a warning to lawmakers seeking to put FedEx Express workers under the National Labor Relations Act, a move seen as helping the International Brotherhood of Teamsters and rival UPS.
"It's FedEx political hardball at its finest," said analyst Donald Broughton of Avondale Partners in St. Louis.
In a research note Monday, Broughton wrote: "We see FedEx's action as a deft political move that aligns the interests of Boeing and GE with FedEx, and pits the interests of the Teamsters against the interests of the machinist and several other trade unions."
Added U.S. Rep. Steve Cohen, D-Memphis, "It just shows how committed Fred Smith and FedEx are to remaining under the Railway Labor Act. That's a pretty strong shot at the Teamsters, who are a pretty strong force on the other side, as well as UPS. It's a shot across the bow."
Cohen was one of the dissenting members of the House Committee on Transportation and Infrastructure when it approved the labor provision as part of a Federal Aviation Administration reauthorization bill. Cohen said the bill hadn't been scheduled yet for action in the full House or Senate.
"We're not threatening Congress," said FedEx spokesman...
He added that if Congress targets FedEx Express to boost the company's chief competitor, "then we would have to take decisive action. (The change) could cause extraordinary upheaval. We will not be able to make large-scale investments like purchases of airplanes, if we can't use them."
(Excerpt) Read more at commercialappeal.com ...
Here’s a company that’s ripe to be declared ‘in trouble/too big to fail’, and taken over by Geithner....
I was think along those lines myself.
You don’t think that would be a too-obvious socialist/communist move for O? ... Oh wait, it is obama we’re talking about...
Atlas Urinates On ubama
I bet the clock is allready ticking...
Govt take over and instant union
Well, considering that with Democrats in office FedEx is already in a hardball game whether they want to be or not, they might as well start playing.
Good for FEDEX.
Screw Hussein and the ‘rats.
I wonder when the “The Mess-I-Ahhh” will bail me out. My family, like many others, is “to small to succeed”.
Of course, I would rather have him get his government hand off of my wallet. I could make it on my own if him and all the other leeches were voted out.
Here’s a great deal. The post office is in trouble and the government wants to make it harder for FedEx to do business. Great stuff!
Business and politics are hardball games all around, regardless of which political party is claiming to steer the awesome destructive power of the government.
Unionization is responsible for many job losses, businesses shutting down or going bankrupt and outsourcing in our country!
Unionization is responsible for many job losses, businesses shutting down or going bankrupt and outsourcing in our country!
Has the G-punk ever run a business?
He's the white 0bomo....
Never run as much as a lemonade stand
Timmy would last ten minutes at Federal Express in a high executive position there
“Unionization is responsible for many job losses, businesses shutting down or going bankrupt and outsourcing in our country!”
Unions are bad, but can’t touch what corporate greed has done.
I put my money on FedEx and Boeing. While the gov't has the ability to change the rules, companies always have the ability to take their ball and go home...if that happens everyone loses. Most of all, the politicans - no fat campaign contributions, PO'd constituents, and so on.
Money talks, BS walks. And American companies have the money.
While I detest Unions in any form, and have invested a good deal of time and effort in pushing for the defeat of card check, I’m not quite sure I agree with Mr. Smith’s approach. The question must be asked: When the day comes when FedEx actually needs aircraft, and believe me that day will come very soon, to whom will they turn to fill the order? The only logical answer, since Boeing will be out of the question, is Airbus. With that being said you must ask yourself the question, would you rather have FedEx purchasing from union infested Boeing or Euro-trash Airbus? Personally I would rather them purchase from an American company. Threatening Unions with such an action has its merits but when push comes to shove you have to consider the alternatives. FedEx might be better served fighting the Railway Labor Act, which poses a direct threat to their business model, instead of threatening American workers. While I agree with the sentiment behind Mr. Smith’s threat, I’m not so sure about its practicality.
I ship UPS personally.... better service. One of the most stable companies out there, bar none!.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.