Using Unions As Weapons: UPS v. FedEx
by Nick GillespieYou may have heard the UPS is in quite the political fight with FEDEX. Though both are package-delivery companies, they’re governed by totally different federal labor rules. As a result, UPS’s workforce is much more heavily unionized than FEDEX’s-and more than twice as expensive.
So now UPS is trying to get FEDEX reclassified under federal law as a way of screwing a competitor. That’s horrendous, but it also makes a sick kind of business sense. And it also reveals the real villain: A government that is big enough to absolutely, positively guarantee it can screw any business. Overnight.
“UPS Vs. FEDEX” was produced by Meredith Bragg and Nick Gillespie (who also hosts). Approximately two minutes long.
This video is based on “Using Unions as Weapons,” by Veronique de Rugy, which appeared in the October 2009 print edition of Reason. Read that article at http://reason.com/archives/2009/09/28/using-unions-as-weapons
For downloadable version of this and all other Reason.tv videos go to http://reason.tv
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43 Comments
Makes GREAT business sense, right ? Penalize the successful and slim FEDEX so they are more "competitive" with UPS. What could go wrong ? Let's see..HIGHER PRICES FOR ALL SERVICES to the public! DEMORALIZING of the work force! The UNION way to failure…. (shaking head).
Great video – simple and effective. I run a small biz and I ship all packages FedEx – the thuggish unions who run UPS is the main reason why.
Go FedEx. And yes, the federal gov't does suck.
Clever ending.
Our government has been buying and selling votes for so long I wonder if it can be undone cleanly without a near complete purge?
How do you get the electorate that still has a dog in the fight to grasp the consequences if they wont take action?
The people with their hands out have already picked sides and are too stupid to realize that once the goose is dead there will be no more eggs for anyone, I dont think they even have the capacity to understand that.
The fact that some are still apathetic wiht so much to lose just amazes me.
People often make the mistake of thinking capitalists are in favor of the free market. They are not. Free market makes them work hard for a minimum profit. Monopoly is their dream state, and they can usually only achieve that through force – i.e. using Government against competitors.
[...] This post was mentioned on Twitter by Big Government, DNC Fail!. DNC Fail! said: #tcot #sgp #orca Using Unions As Weapons: UPS v. FedEx http://url4.eu/jFJj [...]
government power is an opiate to those that exercise it
And Atlas Shrugged …
Troll alert!
great points made here……unions have on ly two speeds — slow and if you piss them off, then slower. I know, cause that's all the union stewards tell me when I push for more productivity. Then, after they rewrite all new job descriptions, you truly begin to realize just hop slow they can really go. Productivity is not a word they speak or understand. Thus, I expect UPS is suffering the US Postal Service desease…and it's terminal like cancer….it can not be remedied. If the US Postal Service can lose 5 billion dollars a year, then I am sure UPS is not far behind. FEDEX should not kneel at the union alter. Just think how your future hospital or health care provider will assist you in a time of need when the SEIU controls all their employees and put you on that waiting list for an MRI, exray, prostate or breast exam, forget even asking for an organ transplant, stints or a triple bypass…that will only occur if you are under 50 and can wait six months for the appointment. Good luck FEDEX and say a prayer for our hospitals run by the SEIU.
Why doesn't UPS ask the government to get the unions out of its business, so it can compete with FedEx head to head?
Don't spread the misery, insist on the cure equally!!!
Morons…
I always go with the cheapest. Not surprisingly, it is FedEx …
I fully support FedEx! But if they get reclassified and forced to go union, they should just shut their doors and send a thank you letter to Obama. I wouldn't blame them.
brilliant and understandable to everyone.
Too funny… The unintended consequence of the UPS action will be…..what ? A SIGNIFICANT INCREASE in the revenue line for FedEx from the backlash against Obamasissy and the now known fact that FedEx is leaner and cheaper. Libs lose again…..always clueless. I am cracking up.. hahaahahahaha ! OMG.
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Now there ya go using common sense. Shame on you. Are you one of them clear thinking conservative types ? (grin)
For a comment like that, he should have posted as George Banks.
It would cut down on kick backs to the democrats.
I agree.
Sell the airplanes and the transport hubs. Better that than GM's long slide into hell.
Ask any UPS worker what UPS stands for, and you'll hear everything from Under-Paid Slaves to United Pot Smoker's.
then there is the intended consequence, when fedex is forced to raise wages, the unions representing ups, will say now that your competitor is high cost, now we want more money also. who looses any way you look, we do, the poor idiots that need packages delivered.
I wonder what classification DHL got stuck with. They were all set to have a major US operation then suddenly cleared out. Did UPS pull this trick on them?
Very helpful information for Americans who wish to support smart and lean businesses that run their companies like we know we must run our households.
Well, now I know why FedEx is on average so much better than UPS.
Cute video by the way.
Nick is a great communicator! Didn't know this about the carriers. Opted out of the teachers union myself–on principle.
pretty soon the govt. will get into the package delivery business, mark my words
Good question? I wonder if that had anything to do with it.
[...] Nick Gillespie of Reason, who needs a haircut, nevertheless nails UPS and the federal government straight to the wall: [...]
Lets not forget "Up Your A**"
Thanks, Nick. Government and unions are out to destroy every businesses in America. Vote OUT all your democrats representatives 2010 and 2012.
Damnit, UPS sucks! Everyone who buys alot of hard drives, processors, motherboards, HDTV's, et. al. soon knows, if they don't already, that FedEx is the way to go as they don't have as policy the requirement of dropping packages long distances and kicking cargo. Unions are part of the leftist feeding frenzy of unsustainable entities gorging themselves as fast as they can, while they can.
Although I think what UPS is doing would be wrong, I know that many conservatives, and I am a conservative, think that all unions are evil and have done nothing good in America. Unions today are in bed with Dumocrats and the leadership could never find anything good about a Republican.
But don't be a dimwit and just say all unions are out to destroy America and are evil and do no good. I belong to a union that along with a contractor association work hand in hand together to make the businesses strong and profitable and have the best interest of the employee in mind. These electrical contractors across the country will admit that their best asset are their well trained, competent and experienced employees.
Keep in mind the SEIU do not have the interest of their employees in mind, they have the interests of BO in mind.
I always find that union shops are much more expensive, usually lower quality of service and the moral is always much lower than the equivalent non-union shop. I'll chose a non-union operation just about every time when given the choice. Sadly the government and unions are trying hard to take that choice away so I'm forced to deal with higher prices, crappy service and products and surly reps.
Full disclosure: I work for UPS. However, I'm very conservative and not AT ALL a fan of unions. I'll just ask a simple question: FedEx delivers packages via plane, right? Well, when was the last time you saw packages delivered from planes? The answer is never: they deliver packages the same way UPS does – trucks and drivers. UPS asked for years to have our drivers covered under the RLA like the FedEx drivers, to no avail. Now we're asking that FedEx drivers be covered under the NLRA like our drivers. I have no resentment toward FedEx for trying to maintain their legislative advantage (though their tactics are pretty distasteful). I just ask that you all offer UPS the same respect.
I ship alot in my business. When DHL bought Airborne Express, they became unionized and that contributed alot to their downfall. But the big reason is that they tried to compete with UPS on ground delivery and offered way too cheap ground rates hoping they'd make up for it with express packages. It didn't happen and that's why no they no longer have ground or US domestic express shipping. They are struggling to survive in the global shipping market. As a result, they forced much of the union guys into early retirement.
The shipping industry has some strong branding. When people think ground shipping – they think UPS. When people think express shipping – they think Fedex or DHL. If those companies want to cross over and compete, they have to have a solid plan to do so.
I know it's a bit old, but it has some great arguments on this subject.
http://theunionlabelblog.com/2009/06/14/rush-to-d...
[...] to prevent competition and raise consumer prices This video from Reason.tv that ECM found at Big Government explains how unions destroy competition by using political contributions to Democrats. Competition [...]
Those are accurate acronyms. 8.50 an hour for strenuous frantic work. I'm not sure where the money the union negotiates for goes to. Strangely enough, a lot of guys there smoke pot.
To be fair, FedEx is similar.
[...] Government: Using Unions As Weapons: UPS v. FedEx by Nick [...]
[...] video from Reason.tv that ECM found at Big Government explains how unions destroy competition by using political contributions to Democrats. Competition [...]
Totally agree.
Does anyone care about the Fedex workers and how much less they are paid to do the same job as a Ups worker. How would you like the guy next to you at the office with the same qualifications and time invested into the company making $5.00 to $7.00 more an hour than you. Lets look at the fight from both corners!
You’ve got a great site here guys, good content, good design. Keep up the good work. I’ll stay updated through your feed…Aloha