Labor Issues Key in FedEx-AF Deal

November 27, 2000 10:00 AM, EST

Investment analysts who cover trucking say labor relations issues with the Teamsters union were a significant factor in the FedEx (FDX) deal to buy American Freightways (AFWY) and operate it with Viking Freight as a nationwide less-than-truckload carrier.

Although the LTL sector is the most heavily unionized part of trucking, FedEx of Memphis, Tenn., has spent its $1.2 billion carefully, and is now on the verge of creating a national, non-union carrier.

“This came as no surprise to us,” Teamsters spokesman Bret Caldwell said. “FedEx is vehemently anti-union. We had heard rumors for several days before the sale was announced.

“We knew they were shopping [for a nonunion carrier],” Caldwell said from national headquarters in Washington, D.C.

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