Here is my take in Reason of the ongoing fight between FedEx and UPS. As you may know, in order to remain competitive, UPS is trying to use the legislative process to force more unions onto FedEx rather that compete in the market place.
I can understand why UPS is frustrated. Unlike FedEx, it
operates under the 1935 National Labor Relations Act (NLRA, commonly known as the Wagner Act). This Depression-era law allows unionization at each individual office of a national company, thereby significantly lowering the barriers to labor organizing. As a result, UPS is one of the largest unionized companies in the country. (Like UPS, the FedEx Ground and FedEx Freight divisions of FedEx are covered by the NLRA.)โ
This legal distinction has had a significant impact on the two competitorsโ labor costs. Average compensation and benefit cost per employee at UPS is more than double that at FedEx โ $74,413 vs. $29,310.
After asking to reclassify, now UPS is trying to get FedEx reclassified to be subjected to the same penalizing labor laws. Yet, the biggest problem in this story is the existence of stupid, outdated, ineffective, penalizing laws. Can the government, please, get out of our lives?
Read the whole thing here.






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