Fed Ex is getting jobbed by UPS political maneuver in Congress

The U.S. House of Representatives recently passed the 2009 FAA Reauthorization Act, which contains language that shifted FedEx Express from under the jurisdiction of the Railway Labor Act (RLA) to the National Labor Relations Act (NLRA). This language was inserted at the request of FedEx Express's competitor United Parcel Service (UPS).

The change would force FedEx Express - considered one of America's best-run companies - to radically reorganize its overnight delivery system. The reorganization would negatively impact Anchorage's already troubled economy. Which raises the question: Why are some in Congress trying to fix something that's not broken?

FedEx Express and UPS belong to two separate industries. FedEx is the largest airline in the world, delivers 85 percent of its parcels by air and has been regulated by the RLA since the company's founding in 1971. The RLA ensures the reliability of interstate commerce and governs interstate traffic on the rails and in the air. UPS is a 100-year-old trucking company, ships 85 percent of its parcels on the ground and is regulated by the NLRA. The NLRA has not traditionally regulated airlines.

I remember well the announcement that FedEx was to build a new hub at Anchorage to handle its Asian business. We rolled out the red carpet and welcomed them gladly. As it turns out, the founder of FedEx had been stationed at Elmendorf Air Force Base during his military service and, as an Air Force pilot, had gained a rich insight into how the "air crossroads of the world" could contribute to an express transportation company. He followed through on his vision and both he and Anchorage came out big winners.

Today, over 1,250 FedEx Express employees are part of our community. FedEx Express services help Alaskan businesses participate and succeed in the global market. Every day 38 FedEx flights take off and land at the Ted Stevens Anchorage International Airport, providing top-rate jobs and pumping millions of dollars into our local economy. In one month alone, FedEx Express paid more than $290,000 to the state for landing fees in Anchorage.

When the Federal Aviation Reauthorization Bill passed the House of Representatives, there was neither notice nor hearing regarding NLRA's regulation of FedEx Express. The wisdom (or lack thereof) in the 290-word add-on provision was never exposed to debate or what likely would have been opposition by the Municipality of Anchorage and the State of Alaska.

We cannot afford to have Congress butcher one of our leading business generators. The House language will be detrimental to FedEx Express, a reliable overnight delivery system that provides good jobs and key services for Alaskans. The U.S. Senate has yet to consider the Reauthorization Bill. When it does, it can excise the objectionable language and save FedEx Express from bureaucratic harassment. Let's run interference for one of Alaska's most valued companies - and help them succeed!

Joseph Henri is an Anchorage businessman.