Labor_Laws_and_Unions

Running head: LABOR LAWS AND UNIONS Labor Laws and Unions University of Phoenix Labor Laws and Unions An interview in college was as close as I came to working for a unionized organization, and that was United Parcel Service of America, Inc. (UPS). But as I continued my research, this paper became about two competitors and the differences between the two in the area of unionization. UPS for founded in 1907 as American Messenger Company, based in Seattle, Washington. In 1919 the company expanded beyond Seattle and adopted the name United Parcel Service. By the 1980’s UPS was international, and today operates in 185 countries and territories. The main competitor of UPS is the FedEx Corporation (FedEx). In regards to the question of legal issues or obstacles which UPS could encounter, I will discuss an obstacle, the challenge of the unionization of UPS’s employees. More than half of the 415,000-member UPS workforce is unionized, primarily with the Teamsters. FedEx has 280,000 workers, and only 5,000, all airplane pilots, are unionized. Keeping the Teamsters out means that FedEx has lower overhead than UPS and can brag to customers that it hasn't had a strike in 38 years, critics say. (Kingsbury, 2009, ¶ 3) Why is the workforce of UPS unionized in greater number than FedEx' It is due to the age and original designation of UPS as a trucking company, resulting in the organization falling under the National Labor Relations Act (NLRA). The NLRA also contains provisions that protect what is known as protected concerted activity- when two or more employees acting together protest or complain about wages, benefits, or other terms and conditions of employment. (Legal Information Institute [LII], n.d., chap. 5) FedEx falls under the 1926 National Railway Act. “The railway act, which also covers airlines, aims to minimize the impact of local strikes on national infrastructure and makes unionizing more difficult.” (Kingsbury, 2009, chap. 2). FedEx falls under the act because its original focus was air freight. Today UPS and FedEx are direct competitors. UPS petitioned the Federal Aviation Administration (FAA), arguing that it was unfair that the two organizations operate under different rules for unionization. The FAA submitted a reauthorization bill to congress to move FedEx under the NLRA. Currently, the legislation is stalled in the Senate Finance Committee. If FedEx is placed under the NLRA, that organization it will face many challenges related to unionization. To prevent the breaking of federal, state or local laws, FedEx would need to educate its manager at all levels on union laws. FedEx would be well served in following the lead of UPS, which has attempted to keep a harmonious relationship with its associated unions. What are the advantages to UPS of having a unionized workforce' For organizations which use trade workers, the unions may provide authentication of the qualifications of workers. For UPS there seem to be only negatives. Its own argument is that unionization places an unfair financial burden on the organization. The unionization process for UPS, and for FedEx if it is placed under the NLRA, will be for employees to band together to bargain collectively and to choose a union for representation. The organization can refuse to accept the union, which forces the union to go through an election process. A union is entitled to an election if at least 30% of the employees in an appropriate bargaining unit express their desire to be represented by the union. This desire is usually expressed through "authorization cards" (authorizing a union to negotiate employment terms and conditions on their behalf) signed and dated by the employees. Alternatively, it may be expressed through a written petition. (Practical Law Company, n.d., ¶ 3) If the union can get the required 30%, an election is overseen by NLRB agents. Half of the employees must vote, and half of those voting plus one must vote positive for the measure to pass. A union bargains through its representatives and it attempts to obtain the best deal for its members. Possible terms can be pay, benefits, working conditions and job protection. Unions at times go as far as a work stoppage in order to have their demands met. For an organization that does not use surveys or other means of learning the factors with which employees are satisfied or dissatisfied, then the union may be the best voice to express those factors. Otherwise, when comparing UPS and FedEx, it would appear that the greatest effect of union bargaining on an organization would be higher labor costs. Also, UPS has to be concerned about possible work stoppages when bargaining with a union. References (n.d.). Company History 1907-1929. Retrieved 10/31/2011, from http://www.ups.com/content/corp/about/history/1929.html Kingsbury, A. (2009). FedEx and UPS Feud Over Union Rules. U.S. News & World Report. Retrieved from http://www.usnews.com/news/articles/2009/12/08/fedex-and-ups-feud-over-union-rules Legal Information Institute (n.d.). National Labor Relations Act: an overview. Retrieved 10/31/2011, from http://www.law.cornell.edu/wex/national_labor_relations_act_nlra Practical Law Company (n.d.). Union Organization Proces. Retrieved 10/31/2011, from http://www.velaw.com/uploadedFiles/VEsite/Resources/UnionOrganizationProcess(5-501-0280).pdf