FedEx to launch campaign against UPS over bill that would ease union organizing

FedEx Corp. is set to launch a multimillion dollar marketing campaign against chief rival UPS, arguing the world's largest shipping carrier is the driving force behind a bill that would make it easier for FedEx workers to unionize. The bill currently before Congress would switch FedEx to jurisdiction of the National Labor Relations Act from the National Railway Labor Act. The Railway Labor Act lets workers to organize, if all workers vote on a union at the same time. That has been a roadblock to unions that can't afford nationwide organizing campaigns. If FedEx Express workers were to be reclassified under National Labor Relations Act, they can organize 1 terminal at a time. FedEx's nearly 5,000 pilots are its only employees that currently have a union. It has a total work force of 290,000. UPS has 425,000 workers; more than half are union members. Most UPS' union workers are members of the Teamsters. FedEx says UPS will benefit from the legislation because it can potentially drive up costs for its closest competitor. FedEx also argues more unions will mean a greater chance of work slowdowns or strikes. "It's nothing but a back door attempt to make us less reliable. It's a legislative bailout for a profitable company," Corporate Communications Dir .said. FedEx also warns shipping rates for consumers will skyrocket" if change is made. A UPS spokesman said FedEx's "apparent attempt to raise the noise level here" doesn't change the facts. "It would appear FedEx is preparing to spend millions of dollars trying to convince Congress FedEx driver delivering a package is different somehow than a UPS driver delivering a package," Black said. "The packages aren't delivered by airplanes, & we don't believe FedEx can fool Congress about it." FedEx plans to launch a Web sit. called "brownbailout.com" referring to UPS' nickname, "Big Brown." It will urge consumers to contact their legislators & speak out against proposed change. The site is part of a multimedia effort, including videos & TV commercials, that will launch over an unspecified period. "America relies too much on the reliability & dependability of its overnight-delivery network, & we can't allow this bailout to pass because UPS can't compete in today's marketplace," he wrote . FedEx threatened in March to delay a planned purchase of 30 new Boeing 777 cargo planes if Congress reclassifies the Memphis, TN-based company. It argued the loss of cost-cutting flexibility that would come with unions would make it impossible to afford the planes. Going ahead with the plane purchase could help ensure thousands of jobs for Boeing employees, workers at GE who make the jet engines & workers at hundreds of subcontractors. The prospect of new unions forming at FedEx comes as it works through the global economic recession. Thousands of employees took wage cuts or salary freezes as it faces deteriorating demand. FedEx also laid off a number of workers to balance waning package volume. The Railway Labor Act was established in 1926 to avoid interruption of goods transported by rail across the country. Its coverage was extended to airlines in 1936, & FedEx was put under its jurisdiction when it began as Fed Express in 1971. Similar legislation to change FedEx's legal classification was introduced in 2007, but the bill was ultimately rejected in the Senate.