UPS vs. FedEx

Here’s an interesting video from ReasonTV (a Reason Magazine offshoot) that mimics the popular UPS whiteboard commercials. In this video Nick Gillespie details the war UPS is waging against FedEx in the regulatory arena. The fight centers on labor laws. Because UPS ships by ground while FedEx ships via air they are governed by two different sets of labor laws. The laws that govern UPS workers makes it easier for them to unionize, raising the labor costs for the company. Instead of attempting to reform the labor laws governing its own workforce, UPS is petitioning the government to place FedEx under the same onerous regulations to create an “even playing field”. This entertaining video points out that UPS isn’t the villain in the scenario. Though it may be utilizing a short-sighted business strategy, UPS is taking steps that make short-term business sense in a market that is completely skewed. The real villain, as the video points out, is a government that has the power help those businesses it favors and “crush” other businesses as it wishes.