FedEx pilots reject tentative deal, supervised talks likely

FedEx pilots have rejected a tentative contract deal with the parcel delivery firm and the two sides will reopen negotiations, likely under the supervision of the National Mediation Board, the company and the pilots’ union said on Monday. The Air Line Pilots Association (ALPA) did not detail the reasons why members voted 57% to 43% to reject the deal. FedEx said it was “disappointed” in the pilot union’s vote, adding that it would “have no impact on our service.” FedEx shares were near flat in late session trading, down just 0.3% to $258.80.


“Our members have spoken and we will now regroup,” Captain Chris Norman, FedEx ALPA chair, said in a statement. The union represents 6,000 FedEx pilots. The tentative FedEx deal included a 30% pay increase and a 30% increase to the pilots’ legacy pensions. Earlier this month United Airlines and its pilots - also represented by ALPA - announced a tentative deal that included a cumulative pay increase of up to 40.2%.


American Airlines and the Allied Pilots Association are revising their tentative deal following the United agreement. Over the weekend, American Airlines pilots indefinitely postponed their ratification vote after the airline boosted its offer. With fewer pilots and rebounding demand, U.S. unions have enjoyed enhanced bargaining power in negotiations during the past year.

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Meanwhile, FedEx rival United Parcel Service is in contract talks with 340,000 of its employees who sort and deliver packages. That UPS contract expires at midnight on July 31. If those workers strike, UPS pilots said they would also stop work.

Source: Reuters

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