FedEx says has political clout to stop labor change
Aviation legislation on deck in Congress could mean that employees in FedEx's express air service would be able to unionize locally, rather than having to call for a national vote. Although many believe the bill is unlikely to become law, FedEx has nevertheless said that it will stop investing in its express air service entirely if the bill is passed. FedEx Chief Executive Fred Smith says he feels confident that he has enough bipartisan support in the House and the Senate to defeat the measure. FedEx express, which generates almost two-thirds of FedEx's total revenue is currently governed under the Railway Labor Act. Rival UPS says that, because the express service also involves many trucks and drivers it ought to be governed the same way that UPS is. FedEx counters by saying that this would amount to choosing to support UPS over FedEx.