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Cargo carriers pose conundrum for air safety bill
Updated: August 21, 2010, 10:12 AM
WASHINGTON — Catching a flight out of Buffalo soon?
If so, your odds of getting an experienced pilot would be much higher if you were a package
rather than a person.
While regional passenger airlines can hire pilots with as little as 250 hours of flying
experience, FedEx has required 1,500 hours of flight time for its pilots for as long as
Frederick W. Smith, its chairman, can remember.
UPS, meanwhile, rarely hires a pilot with fewer than 5,000 hours of experience, a company
spokesman said.
Both of those shipping giants say they strongly support an aviation bill that toughens
pilot hiring standards at passenger airlines.
But a Capitol Hill battle between those rivals on a labor issue now threatens to sink that
entire bill — along with the safety provisions that the Families of Continental Flight
3407 fought to include.
In the midst of it all, the families are trying to stay clear of the fight between FedEx
and UPS while noting the irony that the parcel companies have the pilot hiring standards they
have been pushing at regional airlines.
“We don’t have a horse in that race,” Scott Maurer, one of the most active
members of the families group, said of the labor battle between FedEx and UPS.
“These two companies want to make sure their air crews and the packages they deliver
arrive safe and sound,” said Maurer, who lost his daughter Lorin in the plane crash in
Clarence in February 2009. “That’s why they hire experienced pilots. The same
standards should should apply at regional airlines.”
FedEx requires an Air Transport Pilot (ATP) license and its 1,500 minimum flight hours, for
its pilots. The House version of the aviation bill includes that standard, which the families
also are advocating.
“When you get in one of these transport category airplanes and you don’t have
that criteria, it’s not a certainty that you’re going to have the requisite
experience to operate it safely or reliably all the time,” said Smith, a retired Marine
who founded Federal Express in the early 1970s.
Support for standards
Should the same standards apply to passenger airlines?
“We totally support them,” Smith said. “We think it is a perfectly
reasonable threshold to apply.”
UPS also requires the transport license for its pilots — but in practice, it
doesn’t hire pilots with fewer than 5,000 hours of flight time, said Norman Black,
company spokesman.
“UPS supports passage of the [Federal Aviation reauthorization] bill as soon as
possible,” Black said.
The bill, which authorizes funding for the FAA, also implements NextGen, a reinvention of
the air traffic control system that moves it from the world of World War II radar to a state-
of-the-art GPS technology. That’s hugely important to both the cargo and passenger
airlines as well as a big safety issue, Smith and other aviation experts said.
The trouble is, the House and Senate passed different versions of that FAA bill, and some
of the differences are more easily resolved than others.
The easiest, congressional aides said, include the pilot experience issue. While the House
bill requires 1,500 hours of flight time, the Senate — under pressure from flight schools
and the airlines — opted for 800 hours.
Senate and House aides said they expect the two houses will compromise somewhere in the
middle on the pilot hours issue.
But they warned that no middle ground can be found on the FedEx-UPS issue that threatens to
kill the entire FAA bill.
That involves a provision inserted into the House bill by Rep. James Oberstar, D-Minn., at
the behest of UPS and the International Brotherhood of Teamsters. The provision would allow
the drivers who take packages from FedEx planes to their destinations, along with support
personnel, to organize under the National Labor Relations Act rather than the Railway Labor
Act.
Different rules
That’s important to the Teamsters because the Railway Labor Act allows unions to
organize only on a national basis, while the National Labor Relations Acts allows workers to
organize locally.
In other words, the change would make it much easier for the Teamsters to organize FedEx
drivers and support staff all over the country — just as they had done years ago at UPS.
And that, Smith said, could be a disaster for the company he created.
“We could not live with 25 different unions in 25 different locations with 25
different contract expiration dates,” Smith said.
Worse yet, he added, any one of those local unions at a FedEx hub would be able to
essentially shut down the company’s air delivery system if the drivers went on strike.
So if the provision were to pass, FedEx would cut back on investment in its hugely popular
air parcel delivery operation, Smith said.
“We would be imprudent” to keep investing in it, said Smith, who termed the
provision “a political maneuver by Jim Oberstar on behalf of UPS to injure FedEx, to
accomplish through legislative fiat what they were not able to do on the corporate
battlefield.”
FedEx might not have to worry, though, because Tennessee’s two senators have vowed to
prevent Oberstar’s measure from becoming law. FedEx, based in Memphis, is that
city’s largest employer.
“The Senate did the right thing by excluding a provision to penalize Memphis-based
FedEx under federal labor laws,” Sen. Lamar Alexander, R-Tenn., said last month.
“I’ll do everything in my power to make sure it stays that way.”
UPS and the Teamsters, meanwhile, are doing everything in their power to retain that
provision.
Push by Teamsters
UPS notes that a year after a 1995 change in federal law forced FedEx to be regulated under
the more labor-friendly law, the company got Congress to insert a provision into an aviation
bill to reverse that policy.
“FedEx has used its unique position under the law to try to lure customers from other
delivery companies by claiming that its service somehow is more secure,” Scott Davis,
chairman and CEO of UPS, said in a recent letter to the Wall Street Journal. “FedEx has
leveraged its special treatment under the law to avoid fair and open competition.”
The Teamsters couldn’t agree more.
They say subjecting FedEx and UPS to different labor laws is just a quirk of history.
FedEx started as an airline, meaning like all airlines, it was governed by the Railway
Labor Act. UPS started as a ground shipping company and, therefore, is covered by the more
union-friendly National Labor Relations Act, even though it later started shipping packages by
air to compete with FedEx.
Smith conceded that his company and UPS are now in a “Coke-Pepsi situation.”
And Ken Hall, international vice president and director of the Teamsters Package Division,
said that very fact should be enough to convince Congress that all drivers at both companies
should have equal rights to organize.
Fears for reforms
“A driver is a driver is a driver,” Hall said. “FedEx has spent millions of
dollars to defeat this provision so they can continue to deny some of its drivers of the same
rights every other driver has.”
While the FedEx-UPS battle continues, the Families of Flight 3407 fear that the reforms
they seek might be a casualty if the entire bill stalls.
“There are a lot of really good things in these bills to improve aviation
safety,” said Karen Eckert, who lost her sister, 9/11 activist Beverly Eckert. “We
would like Congress to keep the eye on the ball here. ... Public safety should trump
everything else.”
Buy me a favor?
Labor issue prompts FedEx, UPS to boost spending on lobbying
YearFederal lobbying at FedExFederal lobbying at UPS
2009$16.4 million$8.4 million
2008$8.9 million$5.3 million
2007$5.5 million$2.5 million
2006$3.2 million$3.0 million
Source: Center for Responsive Politics compilation of federal lobbying reports
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