May 21 (Bloomberg) -- FedEx Corp. truck drivers, package handlers and other employees would be able to join unions more easily under legislation the U.S. House approved today.

Workers in FedEx’s Express unit could vote locally to join unions under the plan rather than having to hold a national election to gain representation. The labor provision was included by Representative James Oberstar, a Minnesota Democrat, in broader $53.5 billion legislation to finance the Federal Aviation Administration through fiscal 2012.

The 277-136 vote sets up a clash in the Senate between FedEx and larger competitor United Parcel Service Inc., which says the legislation would even the playing field with UPS’s union workforce. UPS workers organize under the National Labor Relations Act, which allows local organizing. FedEx operates under the national organizing standard used for airlines.

“The House of Representatives has done the right thing in closing this unfair loophole,” Teamsters President Jim Hoffa said in a statement. “FedEx Express workers have been deprived their right to form unions like workers at other package- delivery companies.”

The Senate hasn’t yet crafted its version of the bill. The House approved similar legislation in 2007 that wasn’t taken up by the Senate.

“Americans shouldn’t tolerate more bailouts for companies that can’t compete,” FedEx spokesman Maury Lane said in an e- mail. “Hopefully the Senate will understand the unintended consequences of these actions.”

The Teamsters have been trying to organize FedEx drivers for years. Atlanta-based UPS is the biggest employer of Teamsters, with about 240,000 workers. Pilots are the only major worker group represented by a union among FedEx’s 290,000 employees and contractors.

Same Regulations

“We simply believe that two companies performing the same business should be regulated the same way,” said Norman Black, a UPS spokesman. “There is nothing that can justify treating the two companies differently.”

FedEx said in a March 20 regulatory filing it may not buy 30 more Boeing Co. 777 freighters should the provision on unions become law.

Business groups have also opposed other provisions in the bill. The Air Transport Association, a trade group for U.S. airlines, said in March carriers would be forced to cut jobs if a proposal to set time limits on antitrust immunity for global alliances becomes law.

The provision would require carriers, including Delta Air Lines Inc. and UAL Corp.’s United Airlines, to seek U.S. renewal of the clearances after three years. Oberstar, the sponsor of the provision, has said alliances reduce competition.

Business Opposition

The Washington-based Air Transport Association also opposes part of the bill that would increase a passenger fee for airport construction projects to as much as $7 from the current maximum of $4.50. The provision would cost $2 billion or more a year, the association’s president, James May, said in a May 18 letter to House leaders.

The U.S. Chamber of Commerce, the world’s largest business federation, opposes a separate section of the bill that would remove the FAA administrator’s ability to impose contracts on air-traffic controllers. Under the measure, disagreements over a new contract would go to federal mediation.

The National Air Traffic Controllers Association, the union representing the 15,000 workers, sought the legislation after then-FAA Administrator Marion Blakey imposed a contract in 2006. The action cut starting controller pay 30 percent and was to save $1.9 billion over five years, the FAA said at the time.

Bruce Josten, the Chamber’s executive vice president of government affairs, said in a letter to House members yesterday that the controller provision wouldn’t be in taxpayers’ interest. The controllers’ union has said the imposed contract led to excessive workloads and fatigue.

The Chamber also opposes a bill provision that would require FAA inspections of airlines’ overseas repair centers twice a year. The provision violates an aviation safety agreement with the European Union, the group said in its letter.

To contact the reporter on this story: John Hughes in Washington at jhughes5@bloomberg.net

Last Updated: May 21, 2009 17:55 EDT