FedEx Corp. (FDX) said Tuesday it has reached a tentative agreement with pilots of its air delivery unit, averting a strike that would have disrupted the company's global shipping operations. The agreement, which still needs to be ratified by the pilots, includes pay raises and other benefits, the company said. The deal comes after 99% of about 6,000 FedEx Express pilots that the Air Line Pilots Association (ALPA) represents voted in favor of a strike, as they asked for better pay and benefits.
"We are pleased to have reached this tentative agreement with the ALPA pilots," said FedEx CEO Fred Smith. "This agreement is fair to our pilots and our shareholders, and it will help us continue to provide our customers with the best possible service." The tentative agreement includes pay raises of 8% over four years, as well as improved retirement benefits and other perks. The deal also includes a provision that would allow pilots to retire at age 60 with full benefits.
The ALPA pilots had been seeking a 10% pay raise over four years, as well as improved retirement benefits and other perks. The union had also asked for a provision that would allow pilots to retire at age 55 with full benefits. The tentative agreement is a major victory for FedEx, which had been bracing for a strike that could have disrupted its global shipping operations. The company had said that a strike would have caused "significant" disruptions to its operations and could have led to lost revenue.
The tentative agreement is also a major victory for the ALPA pilots, who had been seeking a significant pay raise and improved benefits. The union had said that its members were underpaid and that they deserved better retirement benefits. The tentative agreement is subject to ratification by the ALPA pilots. If the pilots vote to approve the deal, it will go into effect immediately. If the pilots vote to reject the deal, it will be sent back to the negotiating table.
