2009–10 Federal Aviation Administration Reauthorization Act dispute
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In 2009 a provision was added to the
Federal Aviation Administration The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic ...
Reauthorization Act that would have changed the conditions under which some of
FedEx Corporation FedEx Corporation, formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce and business services based in Memphis, Tennessee. The name "Fed ...
's employees could
unionize A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits (su ...
. FedEx referred to these provisions as the "Brown Bailout".


Overview

The argument between FedEx on the one hand and UPS and the
International Brotherhood of Teamsters The International Brotherhood of Teamsters (IBT), also known as the Teamsters Union, is a labor union in the United States and Canada. Formed in 1903 by the merger of The Team Drivers International Union and The Teamsters National Union, the un ...
union on the other is over which labor act FedEx's non-airline personnel should be covered under, the National Labor Relations Act (NLRA) or the
Railway Labor Act The Railway Labor Act is a United States federal law on US labor law that governs labor relations in the railroad and airline industries. The Act, enacted in 1926 and amended in 1934 and 1936, seeks to substitute bargaining, arbitration, and media ...
(RLA): *under the NLRA, workers are able to unionize locally, on a site-by-site basis; *under the RLA, workers must unionize nationally, which is more challenging and tends to keep rates of unionized workers low. As of June 2010, The NLRA covers UPS's non-airline workers, and the RLA all of its airline workers; a large number of UPS drivers, package handlers and clerks are represented by the International Brotherhood of Teamsters.
UPS Teamsters Master Agreement 2008-2013 Yet, all FedEx personnel, including those working on railways and other modes of ground transport, are covered under the RLA, which requires them to unionize nationally. If the provisions were passed, FedEx's non-airline personnel would be able to unionize more easily, because they would be covered under the NLRA. According to the Memphis-based company, this change could also "expose tscustomers at any time to local work stoppages that interrupt the flow of their time-sensitive, high-value shipments”. The International Brotherhood of Teamsters has counter-attacked with its own web campaign, "FedEx drivers aren't pilots",FedEx FedEx drivers aren't pilots.com
Retrieved on June 21, 2010.
insisting on the fact that the NLRA, not the RLA, should apply to FedEx's ground personnel.


Controversial use of the term 'bailout'

The term 'Brown Bailout' refers to the provision that UPS has lobbied to have put into the $34.5 billion
Federal Aviation Administration The Federal Aviation Administration (FAA) is the largest transportation agency of the U.S. government and regulates all aspects of civil aviation in the country as well as over surrounding international waters. Its powers include air traffic ...
Reauthorization Act (H.R. 915) voted on by the
United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they ...
in May 2009 and by the
United States Senate The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and pow ...
in March 2010.Senate Passes FAA Bill without FedEx Labor Fix
, CivilRights.org, March 25, 2010. Retrieved on June 21, 2010.
The term was coined in FedEx's large
online advertising Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...
campaign against UPS and the International Brotherhood of Teamsters; it seeks to emphasize the idea that changing FedEx's personnel statute would be equivalent to giving UPS a '
bailout A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of bankruptcy. A bailout differs from the term ''bail-in'' (coined in 2010) under which the bondholders or depositors of global sys ...
'. However, independent observers have strongly criticized FedEx's wording,'Brown Bailout?' Hardly
FactCheck.org, July 20, 2009. Retrieved on June 21, 2010.
claiming that it was "an abuse of the term". Steve Centrillo, a marketing consultant quoted by the New York Times, described the use of the word 'bailout' as "the most questionably ethical thing on the rown Bailoutsite".Campaign Against Rival Could Haunt FedEx
NYTimes.com, June 9, 2009. Retrieved on June 22, 2010.
Quoted in the same article,
advertising Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a ...
professional Scott Elser expressed his concern that the use of the word 'bailout' had "the ability to potentially harm" FedEx, arguing that what FedEx's website claimed was a bailout "clearly asnot a bailout as most consumers and business people would define it". According to the Oxford American Dictionary, a bailout is the "act of giving financial assistance to a failing business or economy to save it from collapse".Oxford American Dictionary. Retrieved on June 22, 2010.
Time Magazine ''Time'' (stylized in all caps) is an American news magazine based in New York City. For nearly a century, it was published weekly, but starting in March 2020 it transitioned to every other week. It was first published in New York City on Ma ...
listed the term 'bailout' as one of the top 10 buzzwords of 2008,Top 10 Buzzwords
time.com, November 3, 2008. Retrieved on June 22, 2010.
insisting on its negative connotation; this is in large part due to the fact that a substantial number of Americans have a negative opinion of the
Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008, often called the "bank bailout of 2008", was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and signed into law by President George W. Bush. It became ...
, commonly referred to as 'a bailout of the U.S. financial system'.Initial Bailout Falling Out of Favor With Americans
gallup.com, December 9, 2008. Retrieved on June 22, 2010.


Timeline

*February 9, 2009: H.R. 915: FAA Reauthorization Act of 2009 introduced to House of Representatives. Sponsor: James Oberstar (D- MN 8) Cosponsor: Jerry Costello (D- IL 12) *Referred to Following CommitteesList of committees and subcommittees bill was referred to
Retrieved on June 22, 2010.
: ** House Committee on Transportation and Infrastructure and Subcommittee on Aviation **
House Committee on Science and Technology The Committee on Science, Space, and Technology is a committee of the United States House of Representatives. It has jurisdiction over non-defense federal scientific research and development. More specifically, the committee has complete jurisdic ...
and Subcommittee on Space and Aeronautics ** House Committee on Homeland Security *March 5, 2009: Committees report back to House of Representatives on the Bill *Amendments ProposedAmendments to H.R. 915
Retrieved on June 22, 2010.
*May 21, 2009: Bill passes House of Representatives (277 ayes, 136 Nays, 20 present/not voting
Vote Details
*June 1, 2009: Received in the Senate and read twice. Referred to the
Senate Committee on Commerce, Science and Transportation The United States Senate Committee on Commerce, Science, and Transportation is a standing committee of the United States Senate. Besides having broad jurisdiction over all matters concerning interstate commerce, science and technology policy, a ...
. *March 22, 2010: Senate passes its version of the bill, without FedEx's language of the ProvisionSenate approves FAA bill but fight with House looms
govexec.com, March 23, 2010. Retrieved on June 22, 2010.
*June 30, 2010: Deadline for House and Senate to reconcile the two versions of the bill. This deadline passed without reconciliation and the bill failed to become law.Gov Track.us page on H.R. 915
Retrieved on June 22, 2010.


References


External links


FedEx's Brown Bailout page

UPS's website about the legislation

FedEx drivers aren't pilots.com


See also

*
Crony capitalism Crony capitalism, sometimes called cronyism, is an economic system in which businesses thrive not as a result of free enterprise, but rather as a return on money amassed through collusion between a business class and the political class. This i ...
{{DEFAULTSORT:2009-10 Federal Aviation Administration Reauthorization Act dispute United States labor law FedEx