UPS THINKS IT HAS FEDEX SNOOKERED, YEAH RIGHT!
Over the years we have been supporters of both companies, but last year Pete and I decided there was no future dealing with the bureaucracy that envelopes UPS. Once upon a time many of us couldn’t trust the USPS and in fact, FedEx was born out of the gross inefficiency and unreliability of the Post Office being even able to deliver a letter without losing it or at best delaying delivery. Fast forward to 2009 and with FedEx as the airfreight supplier to USPS, this government department has left UPS in its wake for not only innovations but they beat UPS hands down when it comes to on-time delivery for envelopes and small packages. Yes, FedEx and USPS is a match made in heaven.
Ever since FedEx flew its first Falcon jet laden with small packages, UPS has spent tens of $millions on lobbyists whining and complaining to the politicians and bureaucrats on Washington Beltway that FedEx has an unfair advantage over them because neither their pilots nor their labor force is unionized while UPS’s is. FedEx from day one up until now has always had its employees on its side because Fred Smith has been a very generous boss making sure their take home pay is higher than any of its competitors but their retirement and healthcare plans set the bar for American industry. On the other hand the Teamsters Union has fought tooth and claw for decades with UPS to attain satisfactory levels. A FedEx executive today reminds me of where IBM executives were a generation ago. They are highly skilled, motivated and commercial. Take a look inside the UPS “mahogany rows” in the various buildings spread around Atlanta, and the lot of them resemble a bunch of worthless and sanctimonious religious missionaries all donned in their Church issue hair cuts, gray suits, white shirts, bland ties and polished black shoes. None of them could make a decision to save themselves, whereas Fred Smith has always encouraged his key men to be innovative and entrepreneurial as though they are not only running the business but they also own it.
Currently the House of Representatives appear to favor the UPS position that FedEx workers should be treated under the same act that governs UPS workers. Fred Smith, it appears has the ears of the majority of the Senate. Both UPS and FedEx have been conducting campaigns of disinformation and both in the last year have spent nearly $10 million each with Washington law firm lobbyists. If UPS can convince the Senate, then war will break loose between FedEx and UPS and I know who I would have my money in the marketplace. It is a no-brainer!
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