By Josh Mitchell
DOW JONES NEWSWIRES
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WASHINGTON (Dow Jones)--FedEx Corp. (FDX) Chief Executive Fred Smith said Wednesday the company would be forced to pull back investments in its air-service unit if the U.S. Congress passes a bill making it easier to unionize FedEx.
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Smith, in Washington this week to lobby lawmakers, also renewed threats to cancel a multibillion-dollar plan to purchase 15 Boeing Co. (BA) cargo planes if the bill becomes law. The provision, pushed by FedEx rival United Parcel Service Inc., is attached to a House-passed bill to renew the authority of the Federal Aviation Administration.
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The Senate is expected to pass its version of the bill as early as this week, and FedEx is fighting the possibility that the final bill would contain the labor provision.
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Smith said the provision would introduce the prospect of union strikes at local FedEx facilities and ultimately disrupt FedEx's Express unit. The company would then be forced to stop growing the Express unit and invest elsewhere, he said.
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-Josh Mitchell, Dow Jones Newswires; 202-862-6637
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(END) Dow Jones Newswires
March 10, 2010 14:11 ET (19:11 GMT)
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Copyright (c) 2010 Dow Jones & Company, Inc.- - 02 11 PM EST 03-10-10
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