According to Politico, the American Conservative Union (ACU) tried to solicit a $2 million to $3 million donation from FedEx in exchange for an endorsement in a legislative dispute between FedEx and UPS. The ACU allegedly offered to write endorsements in favor of FedEx and contact their supporters to urge congress to side with FedEx in exchange for the money. When FedEx refused, the ACU sided with UPS.
Congress is considering legislation that would expand union power at FedEx. The Memphis-based shipping giant has one union for all its operations. Under the provision in front of Congress, however, FedEx would have to negotiate individual union contracts for different locations, as is required of UPS. FedEx says this could hinder its ability to make quick deliveries.
Politico reports that as recently as two weeks ago the ACU was supporting FedEx, believing the new rules would give unfair powers to unions. However, the ACU has since switched its position, arguing that the legislation levels the playing field by making FedEx operate under the same requirements as their main rival, UPS.
FedEx sees the situation differently.
“Clearly, the ACU shopped their beliefs and UPS bought,” said Maury Lane, FedEx’s director of corporate communications.
What makes the situation even stranger is that FedEx founder, Chairman, CEO, and President Fred Smith has been a strong conservative donor in the past and is on the board of directors of the economically conservative Cato Institute.
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