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March 25, 2009

The Law

...and unintended consequences.

FedEx threatens to cancel Boeing jet orders: report

FedEx Corp is threatening to cancel the purchase of billions of dollars worth of new Boeing Co cargo planes if Congress passes a law that would make it easier for unions to organize at the package-delivery company, the Wall Street Journal said.

...FedEx's actions raise the stakes in an increasingly bitter battle involving chief rival, United Parcel Service Inc, and the Teamsters union, which has been trying for years to organize at FedEx, the Journal said.


"Look for the union label".

Or will it be "libel"?

Posted by tree hugging sister at March 25, 2009 11:34 AM

Comments

Mad at Congress, take it out on Boeing?

Posted by: Rob at March 25, 2009 11:49 AM

Looks more like a message to a few specific congressmen, if it is true at all. Not exactly sure who though.

Posted by: Dave E. at March 25, 2009 12:07 PM

I don't think they're "taking it out on Boeing", Rob. They're forecasting what unionization might cost them and cutting future expenses accordingly.

Some of those planned aircraft purchases were likely planned on the basis of future growth, which they figure is threatened by the prospect of a unionized FedEx.

Posted by: Eric at March 25, 2009 12:08 PM

What you're saying, Eric, is if FEDEX CAN unionize, they WILL unionize. I don't think that need be a foregone outcome.

Interesting these days how business wants less government intrusion on some days and more on others.

Posted by: Rob at March 25, 2009 12:35 PM

Well, yeah. If FedEx's employees vote in a union, they'll be a union shop. That's true with or without EFCA. But FedEx employees should be able to vote for or against organizing on their own, with secret ballots and without the coercion that comes with card check.

And I'm pretty sure FedEx hasn't asked for - or received - any bailout money.

Posted by: Eric at March 25, 2009 12:47 PM

But FEDEX wants their workers governed by the Railway Act. That's government intrusion.

Posted by: Rob at March 25, 2009 12:59 PM

What, Rob, are you shocked that a corporation blatantly maneuvers for the best position they can for their business?

And, no, I'm not defending FedEx. I'm pointing out how the accumulation of laws of this country permit such maneuvers.....and somehow Congress doesn't get around to changing them, hmmmmm?

At the same time, I can hardly blame FedEx for their actions. What with idiot Congresscritters and Obama grabbing for power however they can, I appreciate pushback like this, regardless of the appearance of any hypocrisy.

Posted by: JeffS at March 25, 2009 02:22 PM

Post script: Rob, there's government intrusion, and then there are blatant power grabs. Maybe FedEx is looking at the lesser of two evils?

Posted by: JeffS at March 25, 2009 02:24 PM

Got it backwards, Jeffs. Congress is trying to change the law. FEDEX is fighting them ... and they're doing it by punishing their business partner, Boeing. Hypocrisy, and even the appearance of it for those too squeamish to say it, is not hard to find.

Posted by: Rob at March 25, 2009 02:30 PM

I think punishing a business partner is a time honored legal tactic! :)

If congressmen can threaten businesses by, for instance, telling movie producers to censor their movies or the government will do it for them, or telling executives to give more money to charity or they'll try to destroy them, for instance when Bill Gates tried to pretend that we live in a free country and was threatened by congress in the Clinton era, then why can't a business make it clear that their actions will jeopardize American business?

I can't remember which congressman is in Boeing's district, but I recall him/her having pretty good political muscle -- certainly more political muscle than FedEx has.

Good for FedEx.

Posted by: Skyler at March 25, 2009 03:00 PM

Skyler, Boeing is spread around the country, with their corporate HQ in Chicago, but their main US facilities are in NW Washington. Baghdad Jim's district is there. And don't forget Senator Murray.

No, I don't have it backwards, Rob. Boeing is in Congress's pockets, and has been for a long time. If anything, FedEx is striking at a partner of Congress. Hypocrisy? Some, maybe. But I'm leaning towards FedEx, given how hypocritical and unethical Congress is these days.

Posted by: JeffS at March 26, 2009 10:29 AM

Kinda curious to see how it turns out. Got UPS on one side saying FEDEX ought to be governed by the same laws as them and you got FEDEX on the other side claiming they're an airline. Boeing stuck right in the middle. I think FEDEX will prevail with or without Boeing's help but I don't buy their rhetoric.

Posted by: Rob at March 26, 2009 11:47 AM