FedEx pilots union reaches tentative contract deal
The pilot's union voted in favor of a strike earlier this month
FedEx has reached a tentative agreement with pilots that will keep its delivery unit up in the air.
The pilot's union had voted in favor of a strike earlier this month seeking higher pay, the package delivery company.
The Air Line Pilots Association (ALPA) had voted "overwhelmingly" in favor of a strike if needed when it had entered the final stages of contract negotiations.
The agreement prevents a possible strike after 99% of about 6,000 FedEx Express pilots that ALPA represents voted in favor of one.
"For more than two years, our pilots have demonstrated their unwavering support of our Negotiating Committee, and just two weeks ago voted overwhelmingly to authorize a strike," said Capt. Chris Norman, chair of the FedEx ALPA Master Executive Council. "This tentative agreement represents the culmination of a tremendous effort, and would not have been possible without the solidarity, patience, and determination of every FedEx pilot."
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A FedEx Express logo is seen on an airplane at Paris Charles de Gaulle airport in Roissy-en-France. (REUTERS/Charles Platiau / Reuters Photos)
Pilots had asked the company to meet recently improved industry standards for compensation.
"We are pleased to have reached a tentative agreement with our pilots as we continue delivering outstanding service to our customers around the world," a FedEx spokesperson told FOX Business in a statement.
Pilots’ unions reportedly have more leverage to push for increased pay and changes in scheduling practices, following the shortage of pilots industry-wide that came about as carriers encouraged retirement during the COVID-19 pandemic.
A cargo plane is refueled on the tarmac at the FedEx Corp. distribution hub at Los Angeles International Airport (LAX) in Los Angeles, California. (Photographer: Patrick T. Fallon/Bloomberg via Getty Images / Getty Images)
Several carriers have been involved in contract negotiations.
Earlier this month, Southwest Airlines pilots voted to authorize a potential strike.
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United Airlines pilots have been picketing at major airports across the nation, demanding higher pay and a better work-life balance in negotiations with management over a new contract.
United Airlines pilots protest for a new contract in downtown Chicago, Illinois, U.S, April 19, 2023. REUTERS/Caroline Stauffer (REUTERS/Caroline Stauffer / Reuters Photos)
American Airlines pilots have agreed in principle on a new contract ahead of a busy summer travel season.
Pilots have been looking to match or beat the deal that Delta Air Lines reached with its pilots earlier this year, which raised pay rates by 34% over four years.
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FedEx did not provide any further details on the agreement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 288.11 | -5.00 | -1.71% |
Reuters contributed this report.