The story is heating up about the American Conservative Union (ACU) switching course in a dispute between FedEx and UPS . . . after FedEx declined an offer to ‘donate’ $2 or $3 million to the ACU in order to launch a grassroots campaign.

At the heart is a lobbying effort by UPS to have FedEx subjected to the same labor regulations as UPS currently is. A trucking based carrier, UPS operates under the NRLA; while FedEx is subject to the Railway Labor Act (RLA) since it primarily relies on air transport.

Soon after UPS started the lobbying, at ACU’s request FedEx administration met with them, and ACU then sent them a letter suggesting a $2.1 to $3.4 million donation to fund a campaign opposing what FexEx is calling the “Brown Bailout.”

FedEx is concerned (rightly) about changes in labor law that would require enormous changes in personnel, materials, regulations, training, routes, schedules, and other areas. Any company would be concerned about their bottom-line, and FedEx opposition is reasonable. The ACU position that changing the law is handing unprecedented power and control to large labor unions is also reasonable, and the UPS-proposed change would add to clout the Teamsters, the nation’s largest trucking union.

FedEx thanked the conservative group, but declined their offer. Two weeks later, FedEx got a letter decrying their use of the term ‘brownbailout’, signed by representatives of numerous other ‘conservative groups —including ACU’s president David Keene— complete with the groups’ logos.

So when FedEx claimed that UPS was seeking a government bailout, we were prepared to jump all over another wasteful government program. But after looking into FedExʼs claims, we realized that FedEx was not telling the truth. UPS was not seeking any taxpayer funds — only regulatory reform that would insure equal treatment of both companies under our nationʼs labor laws. . . . What FedEx falsely and disingenuously labels a bailout is merely UPS asking that the government treat both competitors the same. –letter to FedEx

In fact the term ‘bailout’ means “A rescue from financial difficulties” . . . at least according to the American Heritage Dictionary that these ‘conservative’ failed to consult. UPS is trying, through the government, to get more business by causing FedEx costs to go higher. It would be a providential stroke —for UPS— if that happened.

To be precise and pendantic, if anything it is our government that is incorrectly using the term ‘bailout’. That should be no surprise to anyone. What is surprising is the string of ‘conservative organizations’ signed up to extort FedEx.

Rent-seeking is par for the special-interests course, but switching positions is not. The ACU has issued a press release denying any switch in their position, but their president Keene’s name and their logo is on that letter. If the ACU is honest, their only honorable course is to fire president Keene (after obtaining an apology) for signing the letter and using their logo.

The same applies to the other ‘conservative groups’ that signed: Frontiers of Freedom, Americans for Tax Reform, 60 Plus, Citizen Outreach, Small Business & Entrepreneurship Council, and the National Taxpayers Union.

This type of soft-extortion or coercion has no place in ethical organizations. [Spit]

Hat-tip to Politico

Friday, July 17th, 2009 at 5:54 pm.
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