Brown Bailout? FedEx vs. UPS and Congress
Written by Ron Desi on June 12, 2009 – 6:53 am -
Have you seen the new FedEx marketing campaign against UPS? @Ryanatmghwom sent a tweet linking to www.brownbaliout.com. I went to the site and was quite surprised. The campaign attempts to be humorous and is very, very direct. What surprised me most is that it was a politically charged site that not only attacked UPS but indirectly, unions and United States government bailouts.
The campaign’s message is:
“Why is mega-corporation UPS trying to use its political clout to get a bailout from the U.S. Congress, leaving you to pay the tab?”
Here’s another quote from the site:
“Using their clout as the “biggest giver to U.S. lawmakers,” UPS hopes to slip this bailout in under the radar.
UPS lobbyists have buried a short 230-word legislative bailout deep inside the FAA Reauthorization Act of 2009 currently before Congress. It’s worth billions to “Big Brown” at the expense of today’s American economy that thrives on next-day commerce, competitive shipping options and ready access to markets around the world.”
I have not delved into the issues listed on the website so I cannot comment and offer an opinion. However, this is an interesting campaign that deserves attention and thoughtful conversation. I wonder what experienced marketing professionals feel about the campaign. Will it work or will it backfire?
Posted in Business Insights | 15 Comments »
June 15th, 2009 at 7:21 pm
Nice to see some real comments here. I tried on the FedEx site and was denied. The issue on unions can be debated forever. Fact is FedEx and UPS have similar models and should be treated the same way. FedEx states a union will increase costs by 30%. Look at the UPS and FedEx list rates, they are basically the same. So, FedEx either runs without efficiency, or they have been ripping off people for years. Also, if I ship a FedEx package from my office to another office in the same city, does it go on an Airplane? NO..it is trucked over to its destination. It is sad to see how FedEx, this once respectable company, has gone to a smear campaign. And by the way…mocking the UPS whiteboard ads…that’s original…go to Youtube and look for some more. Sad, Sad, Sad….
June 22nd, 2009 at 2:32 pm
I work for FedEx.. Worked for a union shop previous to FedEx which spurred me on to get my degree in economics (concentrating on labor relations). The long and short of the arguement is that the teamsters and UPS know that if FedEx were held under the RLA it might decrease the competition (good for UPS) and increase potential union dues for the teamsters. Makes sense to me. Very poor business acumen and bad for an economy that has seen so many industries good belly up due to the unions “representing” labor. A better question in these bleak times would be, “will the american public wake up before it’s to late”. Write Obama. Those 230 words need to be removed for the FAA Recert!
June 24th, 2009 at 9:51 am
This is inaccurate and it seems to FedEx is underestimating the intelligence of their customers and the public as a whole. This bill is obviously aimed at leveling the playing field, because of some loophole FedEx employees only are able to join a union collectively country-wide, virtually any other company in the country that has extensive land-based operations such as FedEx is subject organization on a facility by facility basis.
UPS is already is a Union company and is at a competitive disadvantage as things stand today, UPS also has an extensive air based business this legislation would only apply to FedEx’s land based operations. FedEx has also threatened congress, saying they will cancel a huge Boeing Jet order if this legislation passes. FedEx aims to trample working people and they show a callous indifference for their employees rights to form a union.
June 27th, 2009 at 7:09 pm
FedUPS, bubba, bill:
Thanks for your comments. Sorry they took so long to approve. I need to install Akismet to trap spam. It took me a while to clean the spam and approve your comments.
Thanks again.
June 30th, 2009 at 2:07 pm
FedEx was established as a railroad company and thus are subject to the Railway Labor Act. This act allows railroad unionization at a national level and was established in the ’20s to prevent crippling labor strikes (when the US economy heavily depended on railroads). UPS was established as a trucking company whose collective bargaining power is localized.
As someone who has used both, I feel that FedEx offers slightly better service at a better price. I see why Fred Smith, FedEx CEO wants to fight this tooth and nail. Take a look at the US automobile industry. Unionized firms haven’t turned a profit in almost a decade while non-unionized companies like Toyota, Honda and Nissan have thrived.
July 2nd, 2009 at 4:44 pm
Mike L.- thanks for the thoughtful response. We’ll need to wait and see how things play out.
July 11th, 2009 at 2:30 pm
I work for fedex ground as a contractor im young and new to the busniess ive been hearing rumors of this railroad act and have to to many differnt people not quite sure on how much i understand it but wondering if this is affecting fedex express or both?
July 11th, 2009 at 5:10 pm
This whole deal is pretty basic both ups and fedex people pick up your package and either drive it to where it is going or fly it then it is delivered same service about the same price so why are they governed by different laws it is clearly unfair It would be something to see both companies operate under the same laws and fedex has not impressed me with there smear campaign at all Fedex will have to tighten its belt soon Fedex people have long done the same job as UPS people and been paid far less for the job isn’t it about time we think of how the working fedex person must feel
July 22nd, 2009 at 10:22 pm
I work at FedEx Express and Marge, you’re missing the point. While both FedEx and UPS deliver packages by truck, its the way that the packages are moved that needs to be looked at. FedEx moves 85% of their packages by air and UPS moves 85% of their packages by truck. FedEx is an air express company and UPS is a trucking company. That is the main difference and why they fall under different regulations.
While we are generally paid less than UPS, we are paid a fair wage for what we do.
September 25th, 2009 at 8:19 pm
I work for Fedex ground, and it’s very unfair for most if not all of us. How we have to put up with not getting holidays paid, no vacation, no benefits whatsoever, and no sick time at all.. Any day you take even if you’re sick is taken away from your paycheck.. While UPS drivers make up to $30 an hr. we make about half of that, doing the same type of work. Not fair! Someone’s gotta do something about this. Have these people ripping all of us off…
October 12th, 2009 at 11:34 pm
I have worked for union and non-union shops. I have also seen the behind the scene machinations of a company trying to fight off unions. The only reason a company fights off unions…MONEY. They know if a union comes in, they will have to pay their employees more. People seem to think of unions as a bad thing. A union just gives employees an equal voice. No longer does the “Squeaky wheel” get a good raise while the “Humble man” get nothing. If you don’t like unions, that is fine, but become a little more educated before you diss them. Unions are what gave this country 40 hour work weeks, sick pay, vacation and a host of other benefits. I am not a union member now, so I am only stating my position as a person who has worked in both situations.
October 19th, 2009 at 9:45 am
I am a UPS driver. It is all about money. Both companies should be held under the same rules period. If anything UPS has done a better job running its operations while being hamstrung. Many people who use FedEx know They are like three companies Home, ground, air. UPS drivers make more money because we do more work, not just because we are unionized. Talking about waste. I’ve seen all three Fedex drivers in the same neighborhood at the same time. You typically will only see one ups driver. Common sense will tell you that’s not smart. cost of gas, $14-$15 dollars an hour per driver, miles on vehicles. If fedex is allowed to operate as usual they will be the ones who are getting the bailout.
December 5th, 2009 at 2:19 pm
I guess I don’t have solutions, just a few questions to think about…
Aren’t these two companies private (non-government)? Didn’t they choose what type of corporation to set up (under the regulations in place at that time)? Didn’t they choose what type of labor to use?
Does anyone else think that government should get out of the way and let these companies operate without MORE regulations? If you currently work for one of these companies and are so jealous of your counterpart’s benefits, shouldn’t you quit and work for the other company? Does anyone elese think that it is insane to want the government to step in and “level the playing field”?
March 22nd, 2010 at 10:28 pm
FedEx has hired a handful of ghost writers to feed the public negative propaganda about this supposive “bailout”. Their attempts of trying to belittle, talk down, slander United Parcel Service is such a waste of time. Their only scare tactic that the website is carries is that of the ’97 Teamsters Strike. Unions, (especially the Teamsters) will do anything in their power to avoid going on strike. WHEN this reclasification of FedEx goes through and the employees unionize, then the union will have a rocky start with the big wigs at FedEx.
July 8th, 2010 at 11:40 pm
Labor relations should always be good to ensure the success of a company.;”*