Democrats go after FedEx

Washington Times Editorial:

FedEx Express is learning what could be the Democrats' economic motto -- "Never Let Success Go Unpunished."

Led by Rep. James L. Oberstar, Minnesota Democrat, the House on May 21 passed legislation that contains an almost hidden provision -- a mere 230 words -- that would hobble FedEx Express. It would do so by completely changing the labor laws under which the company operates. Unless the Senate removes the language from the underlying bill reauthorizing the Federal Aviation Administration, a mere dozen or so workers in just one city could hamstring much of the nation's overnight delivery service.

We Americans take for granted that things can "absolutely, positively ... be there overnight" -- but it took FedEx Express to make that so. FedEx Express is, of course, one of the great corporate success stories of modern times, having grown from a mere idea in a 1965 term paper by Yale University undergraduate Frederick W. Smith into a company essential to the workings of our modern economy.

It is a little-known fact that FedEx contracts with the U.S. Postal Service to carry almost all of its Express Mail and a large proportion of its Priority Mail. FedEx delivers huge amounts of needed supplies for American military forces, too -- and its service is just about the only way to guarantee that some lifesaving medicines reach patients overnight.

Lawmakers have long recognized that certain sorts of transportation companies are the lifeblood of interstate commerce. That's why they wrote the Railway Labor Act to apply special labor-relations rules to railroads and, eventually, airline-based businesses such as FedEx Express. Since 1926, the RLA has provided successfully for means other than strikes to resolve labor disputes fairly and quickly, without favoring either side.

The RLA does not, however, apply to non-rail, mostly ground-transportation companies such as the United Parcel Service. UPS instead is governed by the National Labor Relations Act (NLRA), the terms of which favor unions such as the Teamsters, which represents UPS drivers. Naturally, this means UPS and the Teamsters both have an interest in kneecapping FedEx Express. Together, the ground-delivery company and the union have executed what The Hill newspaper called a lobbying "pincer movement" to transfer authority over FedEx Express from the RLA to the NLRA.

The UPS corporate political action committee has "given more money to federal lawmakers than any other company over two decades," according to Bloomberg News, with $77,900 from UPS employees going to Mr. Oberstar since 1989. The Teamsters, who lean heavily Democratic, have donated $86,500 to Mr. Oberstar during that period.

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Wouldn't it make more economic sense for UPS to try to get under the RLA? Most of the time companies look for the most efficient way to do business and adopt competitors ways when they are seen as advantageous rather than trying to saddle competitors with inefficiencies. Democrats of course are not interested in efficiencies and competition but in raw power and the use of labor thugs to acquire it.