Brown Bailout
Encyclopedia
In 2009 a provision was added to the Federal Aviation Administration
Reauthorization Act that would have changed the conditions under which some of FedEx Corporation's employees could unionize
. FedEx refers to these provisions as the "Brown Bailout".
on the one hand and UPS
and the International Brotherhood of Teamsters union on the other is over which labor act FedEx's non-airline personnel should be covered under, the National Labor Relations Act
(NLRA) or the Railway Labor Act
(RLA):
As of June 2010, The NLRA covers UPS's non-airline workers, and the RLA all of its airline workers; a large number of UPS drivers, package handlers and clerks are represented by the International Brotherhood of Teamsters. Yet, all FedEx personnel, including those working on railways and other modes of ground transport, are covered under the RLA, which requires them to unionize nationally.
If the provisions were passed, FedEx's non-airline personnel would be able to unionize more easily, because they would be covered under the NLRA. According to the Memphis-based company, this change could also "expose [its] customers at any time to local work stoppages that interrupt the flow of their time-sensitive, high-value shipments”. The International Brotherhood of Teamsters has counter-attacked with its own web campaign, "FedEx drivers aren't pilots", insisting on the fact that the NLRA, not the RLA, should apply to FedEx's ground personnel.
Reauthorization Act (H.R. 915) voted on by the United States House of Representatives
in May 2009 and by the United States Senate
in March 2010. The term was coined in FedEx's large online advertising
campaign against UPS and the International Brotherhood of Teamsters; it seeks to emphasize the idea that changing FedEx's personnel statute would be equivalent to giving UPS a 'bailout'. However, independent observers have strongly criticized FedEx's wording, claiming that it was "an abuse of the term". Steve Centrillo, a marketing consultant quoted by the New York Times, described the use of the word 'bailout' as "the most questionably ethical thing on the [Brown Bailout] site". Quoted in the same article, advertising professional Scott Elser expressed his concern that the use of the word 'bailout' had "the ability to potentially harm" FedEx, arguing that what FedEx's website claimed was a bailout "clearly [was] not a bailout as most consumers and business people would define it". According to the Oxford American Dictionary, a bailout is the "act of giving financial assistance to a failing business or economy to save it from collapse". Therefore, FedEx's use of the term 'bailout' was for the word's status as a buzzword
, because this provision does not technically constitute a bailout.
Time Magazine listed the term 'bailout' as one of the top 10 buzzwords of 2008, insisting on its negative connotation; this is in large part due to the fact that a substantial number of Americans have a negative opinion of the Emergency Economic Stabilization Act of 2008
, commonly referred to as 'a bailout of the U.S. financial system'.
Federal Aviation Administration
The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...
Reauthorization Act that would have changed the conditions under which some of FedEx Corporation's employees could unionize
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
. FedEx refers to these provisions as the "Brown Bailout".
Overview
The argument between FedExFedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
on the one hand and UPS
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...
and the International Brotherhood of Teamsters union on the other is over which labor act FedEx's non-airline personnel should be covered under, the National Labor Relations Act
National Labor Relations Act
The National Labor Relations Act or Wagner Act , is a 1935 United States federal law that limits the means with which employers may react to workers in the private sector who create labor unions , engage in collective bargaining, and take part in strikes and other forms of concerted activity in...
(NLRA) or the Railway Labor Act
Railway Labor Act
The Railway Labor Act is a United States federal law that governs labor relations in the railroad and airline industries. The Act, passed in 1926 and amended in 1934 and 1936, seeks to substitute bargaining, arbitration and mediation for strikes as a means of resolving labor disputes...
(RLA):
- under the NLRA, workers are able to unionize locally, on a site-by-site basis;
- under the RLA, workers must unionize nationally, which is more challenging and tends to keep rates of unionized workers low.
As of June 2010, The NLRA covers UPS's non-airline workers, and the RLA all of its airline workers; a large number of UPS drivers, package handlers and clerks are represented by the International Brotherhood of Teamsters. Yet, all FedEx personnel, including those working on railways and other modes of ground transport, are covered under the RLA, which requires them to unionize nationally.
If the provisions were passed, FedEx's non-airline personnel would be able to unionize more easily, because they would be covered under the NLRA. According to the Memphis-based company, this change could also "expose [its] customers at any time to local work stoppages that interrupt the flow of their time-sensitive, high-value shipments”. The International Brotherhood of Teamsters has counter-attacked with its own web campaign, "FedEx drivers aren't pilots", insisting on the fact that the NLRA, not the RLA, should apply to FedEx's ground personnel.
Controversial use of the term 'bailout'
The term 'Brown Bailout' refers to the provision that UPS has lobbied to have put into the $34.5 billion Federal Aviation AdministrationFederal Aviation Administration
The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...
Reauthorization Act (H.R. 915) voted on by the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
in May 2009 and by the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
in March 2010. The term was coined in FedEx's large online advertising
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, Rich Media Ads, Social network advertising, interstitial...
campaign against UPS and the International Brotherhood of Teamsters; it seeks to emphasize the idea that changing FedEx's personnel statute would be equivalent to giving UPS a 'bailout'. However, independent observers have strongly criticized FedEx's wording, claiming that it was "an abuse of the term". Steve Centrillo, a marketing consultant quoted by the New York Times, described the use of the word 'bailout' as "the most questionably ethical thing on the [Brown Bailout] site". Quoted in the same article, advertising professional Scott Elser expressed his concern that the use of the word 'bailout' had "the ability to potentially harm" FedEx, arguing that what FedEx's website claimed was a bailout "clearly [was] not a bailout as most consumers and business people would define it". According to the Oxford American Dictionary, a bailout is the "act of giving financial assistance to a failing business or economy to save it from collapse". Therefore, FedEx's use of the term 'bailout' was for the word's status as a buzzword
Buzzword
A buzzword is a term of art, salesmanship, politics, or technical jargon that is used in the media and wider society outside of its originally narrow technical context....
, because this provision does not technically constitute a bailout.
Time Magazine listed the term 'bailout' as one of the top 10 buzzwords of 2008, insisting on its negative connotation; this is in large part due to the fact that a substantial number of Americans have a negative opinion of the Emergency Economic Stabilization Act of 2008
Emergency Economic Stabilization Act of 2008
The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 (Division A of , commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis...
, commonly referred to as 'a bailout of the U.S. financial system'.
Timeline
- 9 February 2009: H.R. 915: FAA Reauthorization Act of 2009 introduced to House of Representatives. Sponsor: James Oberstar (D-MN 8Minnesota's 8th congressional districtMinnesota's 8th congressional district covers the northeastern part of Minnesota. It is anchored by Duluth, Minnesota which is the fourth largest city in state. It also includes most of the Mesabi and Vermilion iron ranges. The district is best-known for its mining, agriculture, tourism, and...
) Cosponsor: Jerry CostelloJerry CostelloJerry Francis Costello is the U.S. Representative for , serving since 1988. He is a member of the Democratic Party and the dean of Illinois's 21-member Congressional delegation. The 12th district includes the St. Louis area suburb cities and stretches to deep Southern Illinois.-Early life,...
(D-IL 12) - Referred to Following Committees:
- House Committee on Transportation and Infrastructure and Subcommittee on AviationUnited States House Transportation Subcommittee on AviationThe Subcommittee on Aviation is a subcommittee within the House Transportation and Infrastructure Committee. The Subcommittee has jurisdiction over civil aviation, including most aspects of the Federal Aviation Administration , the Transportation Security Administration, and the National...
- House Committee on Science and Technology and Subcommittee on Space and AeronauticsUnited States House Science Subcommittee on Space and AeronauticsThe Science Subcommittee on Space and Aeronautics is one of five subcommittees of the United States House Committee on Science and Technology.- Jurisdiction :...
- House Committee on Homeland Security
- House Committee on Transportation and Infrastructure and Subcommittee on Aviation
- 5 March 2009: Committees report back to House of Representatives on the Bill
- Amendments Proposed
- 21 May 2009: Bill passes House of Representatives (277 ayes, 136 Nays, 20 present/not voting) Vote Details
- 1 June 2009: Received in the SenateUnited States SenateThe United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
and read twice. Referred to the Senate Committee on Commerce, Science and Transportation. - 22 March 2010: Senate passes its version of the bill, without FedEx's language of the Provision
- 30 June 2010: Deadline for House and Senate to reconcile the two versions of the bill. This deadline passed without reconciliation and the bill failed to become law.