FedEx is fighting efforts by labor unions and lawmakers to move it from regulation under the Railway Labor Act to the National Labor Relations Act. This would make it easier for employees to unionize. FedEx has threatened to cancel a $7 billion Boeing jet order if the labor law passes. FedEx is employing strategies like applying pressure through its Boeing order, building a majority against the bill, and targeting pivotal votes in Congress to remain under RLA jurisdiction and prevent higher labor costs.

1. Formulating Nonmarket Strategies for Governmental Arenas (FedEx Case Study)
Yanal Sami

2. Labor Wants to End FedEx's Railway Act Protection
FedEx Fights Back
UPS‐Supported Bill Could Raise FedEx Labor Costs
FedEx's Anti‐Union Drive
FedEx to cancel Boeing jet order if labor
organizing law passes
FedEx's Boeing 777 order may hinge on
labor law ($7 billion)

3. The Conflict
- Business Objective and Public Interest
Railway Labor Act National Labor Relations Act
No Local
Local Unions
Unions, only
nation-wide allowed, easier
to establish
Harder to
establish and and join
join

4. 1‐ Government Arena selection.
2‐Applying pressure on the Boeing order = Rent Chain. $7 billion.
3‐ Majority Building.

5. FedEx Bill Strategy Analogy
Clearly making
FedEx in the RLA
jurisdiction Annual Authorization Bill for the FAA

6. Government Arena Selection
Conference
Congress
Committee
Less obvious
Too obvious
Allies support
Big
Opposition Better
position

7. Filibuster pivot
0 30 41 50 60 100
Least Costly Pivotal
Votes (40‐50)