Potential Fallout of UPS-FedEx Unionization Battle

November 19, 2009 4:04AM

NASHVILLE – Shipping giant United Parcel Service (UPS) is fighting hard to change the rules around how its chief competitor, FedEx, does business. FedEx is one of Tennessee’s largest employers and taxpayers, so the move could not only impact the company but the entire state of Tennessee. The Tennessee Center for Policy Research today released a policy brief titled FedEx vs. UPS: A Showdown in Congress. The brief focuses on the impact the change in labor laws proposed by UPS would have on Tennessee jobs and tax revenues. UPS has recently teamed up with the International Brotherhood of Teamsters to force unionization on FedEx employees. The costs could mean the loss of thousands of jobs and millions of dollars in tax revenue for the state of Tennessee.

“Rather than compete in the marketplace, UPS is trying to hamstring FedEx by the use of government force,” said Justin Owen, TCPR’s director of policy & general counsel. “The fact that any company can go to Congress and ask them to direct a massive wrecking ball at their competition is disturbing.”

The brief calls upon Congress to reject attempts by UPS and the Teamsters union to change the rules. “Our state is already facing a huge budget shortfall and Tennesseans are still losing jobs. The last thing Congress needs to do at this point is to accelerate that process by imposing stricter rules on one of our largest employers,” remarked Owen. FedEx vs. UPS: A Showdown in Congress can be read in its entirety here.