Congress Sidesteps UPS-FedEx Labor Battle by Passing Short-Term FAA Spending Extension

By Sean McNally, Senior Reporter

This story appears in the Aug. 9 print edition of Transport Topics.

Congress has passed a short-term extension of the Federal Aviation Administration’s authorization, delaying until after the August recess further debate over a labor provision that has UPS Inc. and FedEx Corp. feuding.

Before the House and Senate left for the August break, leaders in both bodies reached an agreement on an extension of the FAA authorization that funds the agency through the end of September.

The controversial provision, which would change how federal labor law applies to drivers at FedEx’s Express unit, has been a sticking point between the House and Senate in resolving a final bill.



“We know that there’s overwhelming support in the House, and there’s some concern in the Senate,” UPS Chief Operating Officer David Abney told Transport Topics during a July 30 editorial forum in Arlington, Va. “The two legislative bodies are conferring, and we’ll see what happens at that point.”

In a statement, FedEx spokeswoman Maury Donahue said that the Memphis, Tenn., company “long supported the important air safety legislation which Congress has now passed,” referring to the extension and safety bill. She added that the company also supports “Congress’ effort to pass a broad reauthorization bill, without extraneous labor provisions, after the summer recess.”

FedEx drivers, because of the  company’s roots as a freight airline, are governed by the Railway Labor Act, which requires that unions organize an entire company, rather than terminal by terminal. The RLA covers both railroads and airlines.

UPS drivers, who already are unionized, are regulated under the National Labor Relations Act, which covers trucking and allows terminal-by-terminal organization.

“All we’re asking for is that all companies in the express industry get treated the same way,” Abney said. “We believe that the marketplace should decide who’s competitive and not the labor law. It’s very hard to seriously say that UPS and FedEx don’t do the same thing, especially when it comes to picking up and delivering . . . they are truck drivers, no matter which company they work for.”

The Teamsters union also supports the change, which is championed by Rep. James Oberstar (D-Minn.), the chairman of the House Transportation and Infrastructure Committee.

“The Teamsters firmly believe that the final FAA reauthorization bill must address the issue of fairness when it comes to FedEx’s special treatment that allows it to treat its truck drivers as airline workers,” Teamsters President James Hoffa said.