Union Denounces FedEx Attempt to Leverage Congress Through Threat to Pull $10 Billion Contract with Boeing

In another attempt by FedEx to deny its workers the right to organize, the company today leveled a challenge to legislators in a filing with the Securities and Exchange Commission, revealing that the company would cancel a $10 billion contract to purchase Boeing 777 planes if FedEx Express workers were moved under the National Labor Relations Act (NLRA).

FedEx clearly states in the filing that its contract to purchase additional aircraft from Boeing is contingent upon its labor relations for all of its employees being governed by the Railway Labor Act (RLA).  Under this provision, if Congress dares to grant even a portion of its workers the rights enjoyed by most American private sector employees under the NRLA, FedEx has the right to cancel those purchase orders. 

“FedEx apparently is not content with cutting wages, increasing employees’ medical insurance premiums and eliminating pension benefits for its employees. Now it is threatening to leverage a contract to purchase additional aircraft from an American company to blackmail Congress,” said Ken Hall, Teamsters International Vice President and Director of the Package Division. “It is a slap in the face to Congress and the American people. The bill should be evaluated on its merit – not upon the threat of FedEx to fire another torpedo through the American economy.”

At least one industry analyst has speculated that FedEx may purchase planes in the future from foreign manufacturers. Apparently, not only are the rights of its employees on the table, now FedEx is willing to bet the future of the employees of Boeing and GE – the manufacturer of Boeing's engines – and the employees of dozens of other American manufacturers who supply components of Boeing's planes.

Currently, all workers at FedEx Express are covered by the RLA regardless of whether they have any direct relationship with the operation or maintenance of the air fleet. This includes package delivery drivers, workers at sorting facilities and truck mechanics.

Pending legislation that is a part of the Federal Aviation Administration reauthorization would place those workers under the NLRA, the statute that protects virtually all other private sector workers. Under the NLRA, workers may organize by individual terminals while the RLA requires a more difficult path to unionization that requires a national vote by every worker at FedEx Express.

“At a time that we should be putting workers first, Fred Smith is playing politics with American jobs,” said Teamsters General President Jim Hoffa. “Americans are fed up with this type of irresponsible and shortsighted behavior from CEOs. Fred Smith should be treating workers like a crucial part of a successful business – not like a bargaining chip in his political games.”  

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.