March 30, 2009...12:42 pm

The Morning Penny for March 30, 2009

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As a contracted worker for FedEx Ground this story certainly caught my eye. I’m glad that Fred Smith, the CEO of FedEx, is taking a stand on this issue. It is no secret that the teamsters are trying every way they can to unionize FedEx’s workforce.

There is currently a class action suit in which some former Ground contractors are arguing that they were really employees. The hope is that once contractors are classified as employees then we can be more easily unionized. There is one small problem, being a contractor implies that there is a contract. No one forced these disgruntled contractors into a relationship with FedEx, they signed the dotted line. The odd thing about this class actions suit, we were automatically included in it. We had to send a formal letter declaring that we do not want to be included. I thought you always had to opt into a class action, I guess I was wrong.

The class action suit is only one prong in a two pronged attack. The other is this card-check law which is currently working its way through Congress and is nothing but a free gift to the unions. Secret ballots will be lost, this ought to be a concern for every thinking American. A secret ballot is fundamental to a free election. It will also allow for more deception and intimidation, tactics that unions are famous for using in order to get their way.

I can only hope that more CEOs and business leaders join Fred Smith. Unions have served their purpose and there are now laws that protect workers. The only function they serve these days is to tie down businesses, keep wages high so that fewer workers are hired, and otherwise increase inefficiency. If unions come to FedEx then you will see the death of a great company. It will not likely happen immediately, but it will come eventually. You will see a company that immediately moves from a position of risk taking and growth move to a position of holding ground just to maintain profits. No company can last forever in that position, just look at General Motors.


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