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Pro-Union Bill Could Crush Many Strong Businesses


Wednesday, March 10th, 2010

The idea of calling a bill winding its way through Congress a pro-labor bill can't even be taken seriously, it's a pro-union bill, not a pro-labor bill. There's a huge difference, and as the economic crisis has confirmed, the unions are out of touch with reality and far overpaid; the reason the three largest automakers in America are such a disaster.

FedEx Corp. (NYSE:FDX) Chief Executive Officer Fred Smith said today if the pro-union bill were to pass and it resulted in the unionization of the company, there would be huge consequences; something other companies have reiterated as well.

Unfortunately, the Congress has allowed the major competitor of FedEx, United Parcel Service (NYSE:UPS) to dictate the terms of this bill, making it an ugly situation. UPS is of course unionized, and can't compete with a quality company like FedEx because it pays above-market prices that can't be sustained. Poorly run companies like UPS always have to resort to law if they can't compete, otherwise they would collapse under the weight of operational costs they can't afford.

Essentially, this bill is an attempt to socialize the free market again by the Democrats and the Obama administration, who aren't pro-labor, but pro-union, and back up proposals to muscle their way into the free market and eliminate great-run companies who expose the poorly run union shops which are the dinosaurs of our new age, yet are allowed to survive when they should be going extinct. When the government has to prop up a company, the company is dead. That's all there is to it.

Hopefully politicians and people will see this and rebel against it. Consumers will have to bear the brunt of the outrageous wages and benefits UPS gives their people, along with FedEx if it's allowed to be unionized by government intervention like this, as they'll have to pay for the higher costs of doing business, even if the costs are incurred by a company they do business with.

I know one thing, I won't ever do business with UPS again after this thuggish move to use the government to destroy a competitor by making them do business as they do.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: fedex , pro labor , pro union bill , ups

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