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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

I LOVE FEDERAL EXPRESS

By
Neal Boortz
@ March 27, 2009 8:57 AM Permalink | Comments (33) | TrackBacks (0)

Talked about this on the show today ... but I recognize that there are a lot of people who read these notes who don't hear my show. Besides ... though I don't really mind, I know that there are quite a few talk show hosts out there who use these notes as their own. No problem. If you say or write something I want to use on my show, you can bet I'll use it.

So ... here's the deal. Federal Express has a contract to purchase 30 Boeing 777s. These airplanes are a bit pricy. I'm going to guess around $180 million a shot for the cargo version. I'm told that the total price for these airplanes would be about $7 billion. Maybe more. When you're talking about 30 of these flying machines you're starting to talk some serious money.

When FedEx negotiated that purchase contract with Boeing they put a little clause in there about unions. Background: Battle between UPS and FedEx. Fedex is organized as an airline. UPS started as a trucking company. Different labor laws apply. It was easier to unionize UPS than it would be to unionize FedEx. For one thing ... Unions can unionize individual locations of UPS .. not so FedEx. The unions want this changed. They want to be able to target FedEx as easily as they did UPS. They're hoping their Democrat buddies in Washington will do this for them.

Then we have the insipid card check bill. Unions actually think that the Democrats are going to give them the right to unionize workplaces simply by intimidating workers to sign a petition. No secret ballot. Just sign the petition. Unions are experts at intimidation .. they know how to get the signatures.

So ... we have FedEx battling unions on both of these fronts ... so they made sure they were covered in the Boeing contract. FedEx knows that if the unions win their business model will suffer. Efficiency at the Memphis FedEx center will be lost as unions start to bog down the process. Business will slow. Money will be lost. Grand plans for growth will be shelved as FedEx tries to deal with a unionized workforce. Soooooo .... FedEx has a clause in the contract which gives FedEx an out .. and yesterday FedEx announced that they would do just that. If congress passes and PrezBO signs a law making it easier to unionize the FedEx workplace, the contract to purchase that $7 billion worth of new 777s will be cancelled.

Here's an email I received from a FedEx employee yesterday:

"I am in my 14th year with Fedex. Union organizers used to come around every year. Employee would throw stuff at them, scream at them telling them to have sex with themselves. Have not seen the organizers for the last 5 or 6 years. My message to them: the day I quit is the day Fedex becomes unionized."

Well said, my friend ... and way to go Federal Express! Maybe the Democrats will seize Federal Express and force them to unionize! All for the public good, you know.

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What others are saying

  • Threats
    FedEx threatens congress while taking billions from the USPS. You need to pay more for a postage stamp because FedEx needs a new football team. Do some research.
    By employee @ 04/15/09 11:54:19 AMreport abuse
  • Response to "I don't Get It"
    "If they need the planes to do business, what is the point of the no union clause? What are they going to do, not buy planes? Or buy from Airbus or Aeroflot? I don't quite get it."

    Really? Basically they know that if unions take over, they will have a less productive bottom line, which equals less expansion, which then equals - no need for new planes (just fix the old ones and limit our service area).
    By Daniel Duckworth @ 03/30/09 02:15:38 PMreport abuse
  • UPS vs Fedex
    Yes, when Fedex started they were an airline, but over the years it has morphed into the exact same company as UPS is. If they unionize, it would level the playing field and provide better conditions for the Fedex employees. I worked for UPS and even with the union, we had to work our butts off. The pay and benefits were great and the workers and company negotiated contracts that made a large profit for the company while giving the workers a good living. I talked to Fedex workers that told me how they got abused and had no recouse except to find another job. Unions and companies have to work together in this country so that neither side gets an unfair advantage.
    By Tony @ 03/28/09 09:28:16 AMreport abuse
  • Example: FedEx vs. UPS
    This last Christmas, due to inclement weather, both UPS, FedEx, and DHL were unable to deliver packages to me that were ordered over a month before Christmas.

    I was able to pick up the packages from both DHL and FedEx. FedEx even told employees that wanted to come in on Christmas Eve to work that they could do so. I went to pick up a package from FedEx, and the lady there told me "I figured if even a couple of people got their Christmas presents because I was here, it was worth it."

    Now contrast that with UPS. My home is at the end of the UPS driver's route. So they load my packages on the truck, and every day, due to weather delays, the UPS driver doesn't get to my package. Same process repeats the next day. This went on for OVER A MONTH.

    My kids got the presents that shipped FedEx, but not UPS. Next year all our packages will be coming UPS.
    By Matt Humphrey @ 03/28/09 07:10:09 AMreport abuse
  • Somethings missing?
    If they need the planes to do business, what is the point of the no union clause? What are they going to do, not buy planes? Or buy from Airbus or Aeroflot? I don't quite get it.
    By RV in Ocoee @ 03/28/09 04:55:43 AMreport abuse
  • Fed Ex
    I have had items shipped using both FedEx and UPS, and can easily relate to some of the points mentioned here. Every time I have had something shipped, it was cheaper to use FedEx’s 2-day or next day delivery options than UPS’ based shipping option.

    By threatening to cancel their 777 orders, this will strengthen my loyalty to FedEx.
    By Josh @ 03/27/09 09:47:04 PMreport abuse
  • Cox - the Limousine Liberal Family
    I find it interesting that the Cox Family is so liberal. Having made their billions they support the core democrat beliefs on global warming, higher taxes (on others), etc. But when it comes to unions in the cable business - they are very anti-union. Unions would cut into the family money.
    By Alfred Hussein Neuman @ 03/27/09 09:37:56 PMreport abuse
  • your notes
    Yes Neal, i used to hear your show daily, but I'm in the Houston area now..and no local station :( I do thank you for your notes, been reading them for years!
    By anthony @ 03/27/09 08:32:38 PMreport abuse
  • Govt Control of FedEx
    Here is how it will work - FedEx will come on hard times sooner or later and will judged to be to important to fail - define failure? Failure is having to layoff employees after the Xmas seasonal rush, or opting out of a $7Billion contract to buy airplanes - to the Obama Govt, that must be a failure of the company - so the Govt will demand they intervene and force a "Loan" on the FedEx to buy the planes,and since they take the loan the strings are the Unions. After all, as FedEx is the only "airline company" that delivers packages, they must be too big to fail.

    http://nymike.blogtownhall.com
    By NYmike @ 03/27/09 07:52:42 PMreport abuse
  • Shafted by AFSCME
    Was forced to be an AFSCME member for a few years. Only time in over 45 years of working that I was under a union contract, and in one contract they screwed me big time over retirement health care benefits. Has cost me thousands. Thanks alot you moron union thugs!
    By Crosscut @ 03/27/09 05:05:12 PMreport abuse
  • no more UPS for me
    between this and getting into an argument with a UPS driver when I questioned why he threw my package...good enough reasons to use FedEx for me!
    By Brian @ 03/27/09 04:46:55 PMreport abuse
  • UPS and The Teamsters
    I only worked for UPS for 2 years. I worked in a "right to work" state, but I still joined The Teamsters. I did work for them when the strike happened. Now I did not cross the line, but I didn't totally hate those that did. Now why did I quite UPS? After we came back from the strike, the level of HATE between those of us that did picket (about 85% at my location) and those that did not was purely vile. The number of fist fights, broken car windows, flat out threats on peoples lives is what made me quite. Yah sure they crossed the line, they had bills to pay and kids that COULD NOT lose their insurance. I understand that. I myself did what my dad and grand dad did, and walked the picket line.

    But all in all, I had fantastic benefits, and my union protected them and thats what I wanted them to do more than anything. And I'm pretty sure that Brown would have cut our healthcare benefits if it had not been for The Teamsters. There are people I still know today that work for UPS just because of the benefits more than the actual pay.
    By txmagyar @ 03/27/09 04:02:06 PMreport abuse
  • UPS vs DHL
    I ordered two items from the same supplier and my street address was missing from both orders. The supplier sent one package via UPS and the other one via DHL. I could track both packages until they got to last delivery location. UPS sent the package back to the supplier, DHL made the effort to lookup my name and address and delivered the package.
    When I called UPS to ask about the package, they said they have to send it back. I offer to give them my address with oreder number and all necessary info but they said it is against company policy and that UPS is not in the bussiness to look up addresses!!!! I believe it would cost them less to just deliver the package to me than send it back. But that was their choice.
    Good enough for me. Never again UPS.
    By Newton64 @ 03/27/09 03:33:50 PMreport abuse
  • not just drivers
    I had a friend who worked as a loader when UPS went on strike a few years ago. She was upset because she paid her dues, but didn't get anything for striking... she basically just lost her job.
    By Tara F @ 03/27/09 02:42:18 PMreport abuse
  • boeing..vs airbus
    seems jack murtha aka the us marine corps hater whom pulled the rug out from under boeing in order to assist his friends in france aka airbus to succesfully secure a military refueling aircraft contract.is probably jumping for joy right now..way to build america
    By steve @ 03/27/09 02:27:45 PMreport abuse
  • Fred Smith for the win
    By Simon Spero @ 03/27/09 12:52:16 PMreport abuse
  • The price of high end, high quality aircraft.
    The unit price of their 777s is closer to $250 million each.

    Remember that the next time someone whines about the price of a radar invisible bomber that can fly halfway around the world in any weather to deliver 30,000lbs of lovin' on anyone, no matter how well they are defended.

    Or more applicable today, what’s a supercruising, super agile, radar invisible, Mach 2+ fighter that, with air to air refueling, can fly halfway around the world to deliver 2000lbs of lovin’, or take out a dozen of the top enemy aircraft, worth, when high end cargo haulers go for $250 million? $130 million each ($350 million each for the full contract of 200 B-2s). isn’t so much when viewed in that light. That’s why the dp and msm never does and never will.

    As for unions, the only time I was ever told to slow down work, much less to half speed was on a teamsters’ loading dock. I thought for that kind of pay we should be busting our *sses (industry term, not profanity to me), and we didn’t even break a sweat. Ever since, I’ve supported non-union shops over union shops. I was a shoe in at either of the local GM plants (both since closed, no surprise to me), but I despised the UAW too much, and think too much of my self-respect and sanity.
    By CowboyUp @ 03/27/09 12:34:24 PMreport abuse
  • Will get
    FedEx will get their planes. They will just buy from AirBus.
    By Mark @ 03/27/09 12:27:10 PMreport abuse
  • More than the drivers are union
    I worked at UPS as a loader. I was a member of the union. Don't let people fool you into thinking that only the drivers are union. I'm not sure if office staff were union. But since UPS likes to promote from within, they definitely came from the union.
    By Don @ 03/27/09 12:18:35 PMreport abuse
  • UPS
    I can say that UPS is really customer oriented and tries hard to win the business. More then 100 year company has a lot of pride with many talented and dedicated people, I know many UPS employees, and familiar with company policies. This is one fine and proud company. Not all UPS is unionized, and it is definitely at disadvantage with FedEx that does not have to deal with union problems. I support UPS, and hope that at some point it will be completely union free.
    By LM @ 03/27/09 12:03:28 PMreport abuse
  • a quote
    "The concept is interesting and well-formed, but in order to earn better than a 'C', the idea must be feasible." --A Yale University management professor in response to student Fred Smith's paper proposing reliable overnight delivery service (Smith went on to found Federal Express Corp. - FED EX)
    By Jon B @ 03/27/09 11:56:02 AMreport abuse
  • UPS "Air Delivery"
    A unionized UPS delivery driver carefully delivering a customer's fragile package...
    http://www.youtube.com/watch?v=VylIlHEdkuE
    By Steve @ 03/27/09 11:53:23 AMreport abuse
  • Unions
    I don't get it. If Unions are so wonderful, why do they need to intimidate people to join? If they really did help the worker, they wouldn't have to beg people to join.
    By dgs @ 03/27/09 10:47:14 AMreport abuse
  • FedEx has my loyalty!
    It isn't new that so many places don't like to use UPS. Their drivers don't ring the bell, but instead drop items off or give a could not deliver note. (I once opened the door on one who was tossing the note up rather than ring my bell. He at least looked embarassed.)

    Many people purposely pay more to get the FedEx level of service. While it is true that only the UPS drivers are unionized, that is who is doing the interaction at the delivery end and gives the worst service.

    So long as FedEx resists the unions, I will support them as a consumer!
    By ChristyACB @ 03/27/09 10:32:54 AMreport abuse
  • UPS and union employees
    Here is an example of union employees at work. I was working at a small company in florida and was expecting a next day package..it didn't arrive. Upon investigation I found it was not delivered because the package did not have a suite number on it so they claim they could not find th eaddress. The office park had one building with 5 suites. I asked them if they could not see the 10 foot tall sign with the company name on it..and this was a driver who delivered and picked up twice a day at our location...Never had this problem with Fed EX
    By mharrell @ 03/27/09 10:11:51 AMreport abuse
  • Unions
    This is not about strong arming anyone, as the unions will say. If FedEx is unionized they could very well have to charge higher prices which will result in lower demand, and thus they would not need the additional aircraft capacity. This contract is not a new one. FedEx and Boeing entered into this contract a few years ago. It wasn't just something they decide to do on a whim.
    By Dave @ 03/27/09 09:52:52 AMreport abuse
  • UPS vs. FedEx
    UPS employees are a cynical, hostile lot. Their union protects them to the point that I sometimes think they attempt to crush every shipment just for sport. When they went on strike some years back, many went to FedEx Ground (formerly RPS [Roadway Package Service]). FedEx Ground and their predecessors are non-union; actually they are private contractors. They show a measure of customer service and care that UPS sadly lacks.

    Unfortunately, when UPS came back from their strike, many of the myriad myrmidons went back to them.

    UPS is more expensive than FedEx ground, and as I stated before, will destroy your shipments because they just don't care.
    By Charlie Scott @ 03/27/09 09:44:19 AMreport abuse
  • FedEx vs UPS
    Some things to think about regarding this article:
    When my husband was trying to decide whether to go to work for UPS or FedEx he decided to work for both companies and get the inside picture. After three months he saw that UPS was a better run company and left FedEx. Yes, the drivers of UPS are unionized but the rest of UPS is not. Compare this with FedEx who is not unionized and yet laid off scores of people this year - UPS has not laid off a single person. Even when UPS closed an arm of their company they moved everyone, who wanted to, to another section of the company.

    Also, I had a double mastectomy and chemo last year and our insurance paid for everything except co-pays so for a $100,000 health problem we paid $1,000 out of pocket - I will always go UPS!:)
    By Kathy Matthews @ 03/27/09 09:40:13 AMreport abuse
  • FedEx must go
    Until FedEx is gone I will continue my economic war on America that I have started on March, 2008.
    By Yaroslav @ 03/27/09 09:34:32 AMreport abuse
  • Unions
    Looks like the Unions could cost Boeing a lot of money. Wonder if they will have to lay off workers.
    By Betty @ 03/27/09 09:30:18 AMreport abuse
  • FedEx Express
    Neal,
    I too work for FedEx Express and feel the same as the guy who wrote you...unions come...Im gone. I know what the Teamsters are like. I used to work for a company where they were involved. In fact it was Jimmy Hoffa's local in Detroit.
    The managers or the bosses didnt call the shots..the union did.
    When the unions say that FedEx is blackmailing Congress its because they(unions) are afraid someone might actually stand up to them!!
    By Scott @ 03/27/09 09:24:52 AMreport abuse
  • Letter to Fed Ex
    Just went to Fed Ex's site and entered this into their "Email Fed Ex" box.

    Thank you. Thank you for resisting the unions and their attempts at infiltrating Fed Ex. Our country is worlds better because of our grandparents' unions , and one hundred years ago, unions had a noble fight against child labor and equality among sexes and races. Today unions have decimated our capitalist foundations and I thank you for fighting them. I have gone out of my way to use Fed Ex over UPS and will continue to support your company. Sincerely, James Moore
    By James @ 03/27/09 09:18:19 AMreport abuse
  • That's alot of money!!!
    I had never known that UPS was unionized and that FedEx refuses such antics. With this such knowledge in mind, I will never again willfully use UPS!
    By Dave @ 03/27/09 09:08:58 AMreport abuse
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