US legislation 'could hurt FedEx and air feeders like us'

CHANGING FedEx Express' regulatory status, as favoured by trade unions, would expose the company to risks that could interrupt national and international commerce and irreparably harm feeder airlines, said Walter Clark, CEO of Mountain Air Cargo of Denver, North Carolina.

"I am concerned about federal legislation that would alter FedEx Express' business model, potentially hurting the operations of this company and the countless other businesses that depend on it," said Mr Clark in a Kinston North Carolina Free Press opinion piece.

The act governing labour relations for air and transport, the Railway Labour Act (RLA) "was created by Congress to ensure our nation's air and railway transport networks run reliably without disruptions from local disputes," he said.

"Our company simply cannot afford to lose FedEx Express, and this legislation puts North Carolina workers at risk of unemployment and puts our 35 year-old company at risk of closing our doors," said Mr Clark.

Mountain Air Cargo, which employs 240 people, is an express cargo carrier that operates more than 60 aircraft and flies 100 flights per day and carries five to six million pounds of cargo per month to 35 cities in the southeast United States.

"As a contract carrier for FedEx, we have been able to provide quality employment opportunities with good benefit plans and competitive wages to all the employees in our system," he said.

"However, a small provision of the House version of the Federal Aviation Administration Reauthorisation Act poses a potential threat to this relationship. Buried in Section 806, this provision changes the regulatory status of FedEx Express - the world's largest airline - to mirror UPS, a predominantly ground delivery service.

"FedEx Express, like all airline and express delivery companies, is governed under the labour jurisdiction of the Railway Labour Act. UPS, which ships the majority of its packages solely by ground vehicles, is governed by the National Labour Relations Act, just like FedEx's ground service division," said Mr Clark.

"I urge our Congress members to continue to look out for the best interest of North Carolina's businesses and consumers by rejecting this unnecessary and potentially harmful provision," he said.

(Source:www.schednet.com)