Federal Express Corp. is a company that is in the mail, package, and freight delivery industry. It was started in 1971 by Frederick W. Smith. More commonly known as FedEx, it has become very successful. FedEx has provided quick and reliable service worldwide. But all its success is without its trials and difficulties in dealing with its external and internal environments. Moreover, Federal Express Corp. has maintained its position atop the industry. Federal Express Corp. employees are not unionized.
Due to the fact that under government regulations of The Railway Act of 1926, the law that contains labor relations rules for employees of railroads, air carriers, and express companies. On the other hand, there is The National Labor Relations Act of 1935 which gives workers and unions protection and rights. The two laws are distinct in their statutes. The Railway Labor Act is to prevent any labor disputes that could place a restraint on the flow of interstate commerce. However, the National Labor Relations Act is to protect workers from abuse from mismanagement.
The main difference between the two are, RLA warrants only a national union whereas the NRLA allows unions to be formed locally. Another obstacle FedEx faced was the passing of the Interstate Commerce Commission Termination Act of 1995. Although, any form of bribery or showing any political favors is considered unethical but not illegal. Federal Express can be proven to have engaged in both activities. FedEx has been known to use its own corporate jet planes to accommodate members of the house and the senate. FedEx has also graciously contributed large amount of money to senators and representatives of both democrats and republicans.
The National Relations Board lobbied to put the drivers under the NLRA, arguing that the majority of FedEx employees have nothing to do with airplanes. The National Mediation Board was also involved in disputing FedEx's case. Other regulators such as the Surface Transportation Board and the Federal Aviation Board were also involved. Federal Express Corp. main concern was keeping their workers unionized. They then put forth their lobbying skilled firms to go to Washington. In 1995 and 1996 its Political Action Committee gave "$948,000 to senators and representatives" to both political parties. Federal Express Corp.
itself gave "$400,000 in soft money to the Republicans National Committee and $250,000 to the Democratic Senatorial Campaign Committee. " Another critical strategic response FedEx made was picking up the slack from UPS when their employees went on strike. In turn, FedEx gave 10% bonuses to their employees for putting in long hours. This acknowledgement let their employees know that of their hard work does not go unnoticed. Federal Express Corp. knew it had a social responsibility. That is why when South Carolina was in a drought, FedEx immediately responded and provided planes to transport loads of hay to prevent cattle from starving.
FedEx also maintained its social responsibility to its employees by providing employee-friendly policies, including a Guaranteed Fair Treatment program where any employee can go directly to the CEO Smith to appeal any decisions made by management. Smith makes sure that he makes time for at least four hours for any concerns that may arise. Federal Express Corp. has definitely provided sufficient accommodations for its employees to ensure them that a union is not necessary to protect their rights and well being.