Skip to content
Search AI Powered

Latest Stories

newsworthy

Congress passes two-month extension of FAA funding; FedEx labor provision left in limbo

Action marks 15th consecutive temporary extension for FAA funding.

On the eve of its six-week summer recess, Congress on July 30 agreed to extend until Sept. 30 programs funding the Federal Aviation Administration (FAA), leaving in limbo a controversial provision that would change the labor law governing FedEx Corp.'s air express unit.

The legislation, passed by the House on Thursday and the Senate on Friday, is considered a less comprehensive version than many lawmakers originally hoped for. The legislation raises minimum experience and training requirements for new airline pilots. It also brings commuter airlines under tighter scrutiny both within the FAA and from their larger airline partners.


The provisions addressing the safety of commuter airline operations came out of an investigation into the February 2009 crash of Colgan Air flight 3407, operating for Continental Airlines Inc., which killed 50 people, including all 49 on board.

The legislation, however, did not address funding for the FAA's conversion to a satellite-based air traffic control system. And it left unresolved the issue of whether FedEx Express, which since its founding nearly 40 years ago has operated under the Railway Labor Act (RLA), a statute reserved for airlines and railroads, should be subject to the National Labor Relations Act (NLRA), which governs labor relations in all other industries, including trucking.

The FedEx provision was included in the House version of FAA funding legislation. However, it is not included in the Senate version, and Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee, said he lacks the votes to pass a comprehensive FAA funding bill that includes the FedEx measure.

Fight may not be over
Rep. James L. Oberstar (D-Minn.), chairman of the House Transportation & Infrastructure Committee, is the main supporter of the FedEx provision. He is expected to continue to press for its inclusion when Congress returns from recess. However, some lawmakers have chafed at the idea that a provision not directly related to airline safety could hold up progress on FAA reauthorization. For that reason, some have sought to remove the FedEx language from the FAA bill.

The provision would require all of the unit's employees, except for pilots and aircraft mechanics, to be subject to the NLRA. The NLRA is considered an easier path to unionization because it permits organizing on a local basis. By contrast, the RLA allows a company to be organized only as one nationwide bargaining unit.

FedEx bitterly opposes the provision, saying any localized work stoppage could disrupt its highly synchronized delivery network. It maintains the unit's air and ground delivery functions are part of an interwoven airline operation and should remain under the RLA's auspices. FedEx Corp. Chairman Frederick W. Smith has said the company will cancel orders on 15 Boeing 777 freighters and options on 15 more if it is required to make the change.

The Teamsters union, which has long sought to organize FedEx workers, supports the change. In addition, UPS Inc., FedEx's chief rival, has called for the language to pass, saying it would put the two companies on a level playing field. UPS's operations are governed by the NLRA.

The July 30 action marks the 15th consecutive temporary extension for FAA funding. The last multi-year reauthorization of the agency was in 2007.

The Latest

More Stories

U.S., U.K., and Australia boost supply chain defenses

U.S., U.K., and Australia boost supply chain defenses

The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.

The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.

Keep ReadingShow less

Featured

MRO experts call for greater focus on business risks

MRO experts call for greater focus on business risks

A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.

Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.

Keep ReadingShow less
Oracle says AI drives “smart and responsive supply chains”

Oracle says AI drives “smart and responsive supply chains”

Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.

To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.

Keep ReadingShow less
U.S. shoppers embrace second-hand shopping

U.S. shoppers embrace second-hand shopping

Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.

The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.

Keep ReadingShow less
CMA CGM offers awards for top startups

CMA CGM offers awards for top startups

Some of the the most promising startup firms in maritime transport, logistics, and media will soon be named in an international competition launched today by maritime freight carrier CMA CGM.

Entrepreneurs worldwide in those three sectors have until October 15 to apply via CMA CGM’s ZEBOX website. Winners will receive funding, media exposure through CMA Media, tailored support, and collaboration opportunities with the CMA CGM Group on strategic projects.

Keep ReadingShow less