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IF passed by the US government, the pro-union provisions secreted in an otherwise routine bill refunding a federal agency, would cause FedEx to "stop growing" according to its chief executive Fred Smith.
The provision that puts mostly airborne FedEx under the same labour law as its rival, the mostly truck borne UPS, is included in the House of Representatives approved version of the bill, an otherwise routine measure re-funding the continuing work of the Federal Aviation Administration (FAA).
But within the House version of the FAA Reauthorisation Act, is squirreled away pro-union provisions backed by FedEx's rival, the unionised UPS - and its odd bed fellow, the Teamsters union.
"The bill needs to pass without any extraneous labour provisions," Mr Smith told reporters he invited to lunch recently.
The FedEx chief said the provisions could "destabilise" FedEx operations to such an extent that it's likely his board would rethink investing US$2 billion a year in its air cargo fleet.
Mr Smith said elements of his express air fleet are highly interdependent, and a work stoppage in one base could halt the delivery of critical goods.
The House FAA bill would allow workers at FedEx Express to organise locally. Currently, workers have to hold a national election to form a union, a more difficult job. FedEx pilots are unionised, but they account for 4,500 of the 125,000 air cargo work force.
The Senate version of the FAA bill does not contain the pro-union provisions, largely because Tennessee Republican Senator Bob Corker, whose home state is also home to FedEx, has placed a hold on the legislation until assured it would contain nothing objectionable.
But Minnesota Democratic Congressman Jim Oberstar, also the House transportation committee chairman, put in the pro-union provisions because he feels "workers who are doing essentially the same jobs should to be treated the same way," according to his committee spokesman Jim Berard.
(Source: www.schednet.com)
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