Courage 163
But it has not been continuously smooth sailing for Smith and
FedEx. He has had his courage tested several more times along the way.
During the Christmas season of 1998, traditionally a ‘‘make or break
time’’ for package companies like FedEx, the pilots threatened a strike,
claiming their wages were too low and there were too many work rules.
FedEx was well aware of the economic damage a strike could cause:
Competitor UPS had suffered a similar strike in 1997, during which
FedEx had increased its business by 11 percent. It was not looking for-
ward to having the tables turned on it.
Smith was faced with a choice: Grant the pilots’ demands and avert
any major short-term damage, or stand by his convictions. He chose
the latter, gauging that to give in to the pilots might have disastrous
long-term effects on the company. Smith had already offered the pilots
terms that were at or near the top of the industry, and he did not want
to give them the idea that they could hold the company for ransom.
It was a courageous step, and the outcome could have gone either
way. Smith risked splitting his company right up the middle (similar to
Solomon proposing to divide a baby to settle a ‘‘custody dispute’’ be-
tween two women). Thousands of employees demonstrated in support
of Smith, saying that he had been fair to all and that the pilots’ demands
were out of line. In response to the consensus of their coworkers, the
pilots backed away from their strike, and FedEx had its best Christmas
season ever, united, not divided.^11
Another leader who has shown the ability to courageously stand firm
is George W. Bush. Confronted with the World Trade Center attack
less than a year into his administration, Bush ceaselessly trumpeted his
resolve to resist the enemy and protect the people and infrastructure of
the United States.
After a brief period of ‘‘evasive action,’’ Bush decided to return to
Washington so that he could orchestrate the U.S. response to the terror-
ism and to show his own people and the enemy that he would face this
crisis with personal courage. Speaking just a few days after the incident,
he said:
And you know, through the tears and the sadness, I see an opportunity.
And make no mistake about it, the nation is sad. But we’re also tough and