Wednesday, March 25, 2009

The Unionization of America

I read several articles this morning about FedEx and how they have threatened to cancel an order of 15-30 planes that they plan to purchase from Boeing if the FAA Reauthorization Act of 2009 becomes law. For a description of the bill, go to:
http://www.govtrack.us/congress/bill.xpd?bill=h111-915

Basically, FedEx has stated that they will no longer be profitable if they become fully unionized, and if the bill passes, that is a much more likely event. Currently the pilots are the only unionized employees at FedEx.

Boeing is not commenting on the statement other to say that they have not added the order for 30 planes to their firm orders because of the wording of the contract in place.

The bill would make them more in line with UPS, who is not covered under the Railroad Act of 1926 because they started as a trucking company before aviation became popular. UPS is unionized by the Teamsters Union.

Congress is becoming more and more unfriendly towards business. Public sentiment also seems to be headed towards becoming business un-friendly.

Here in California, businesses are battling the "Employee Free Choice Act" that changes the current voting procedure from secret ballots to allowing unions to organize by collecting signed membership cards. Privacy groups and employers are concerned that employees would be bullied into voting for the union if union members are allowed to view their votes.

Increasingly, unions are gaining access by petitioning our government to change laws that give them the advantage.

Allan Zaremberg, president of the California Chamber of Commerce, said that the (California) bill would open the door to worker intimidation, and employers could suffer even more than they are suffering now. "Freedom for workers to make the choice to unionize without the threat of intimidation could very well determine the success of any individual employer," Zaremberg said . "In this severe recession, we should be focused on reducing costs to employers so that they can increase the number of jobs they provide."

I'm becoming increasingly concerned about the Business Environment in California. What do you think?

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