FedEx Pilots Reject Tentative Contract Deal, Negotiations to Reopen
July 24 (Reuters) – FedEx pilots have rejected a tentative contract deal with the parcel delivery firm, leading to the reopening of negotiations between the two sides. The National Mediation Board is likely to supervise the discussions, according to the company and the pilots’ union.
The Air Line Pilots Association (ALPA) did not provide specific details as to why its members voted 57% to 43% to reject the deal. FedEx expressed disappointment over the pilot union’s vote and stated that it would have no impact on its service.
Shares of FedEx remained mostly unchanged in late session trading, with a marginal decline of just 0.3% to $258.80.
“Our members have spoken, and we will now regroup,” said Captain Chris Norman, FedEx ALPA chair, in a statement. The union represents around 6,000 FedEx pilots.
The tentative deal from FedEx included a 30% pay increase and a 30% boost to the pilots’ legacy pensions.
In a similar development earlier this month, United Airlines and its pilots, also represented by ALPA, announced a tentative deal that involved a cumulative pay increase of up to 40.2%.
American Airlines and the Allied Pilots Association are currently revising their tentative agreement in light of the United Airlines deal. Over the weekend, American Airlines pilots indefinitely postponed their ratification vote after the airline improved its offer.
The bargaining power of U.S. unions has increased in negotiations over the past year due to lower pilot numbers and a rebound in demand.
Meanwhile, rival company United Parcel Service (UPS) is in contract talks with its 340,000 employees responsible for sorting and delivering packages. The UPS contract is set to expire on July 31 at midnight. In the event of a strike by these workers, UPS pilots have stated that they would also stop work.
Reporting by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Devika Syamnath, Susan Heavey, and Hugh Lawson
Note: This article is abiding by the Thomson Reuters Trust Principles. Lisa Baertlein covers the movement of goods around the world, focusing on ocean transport and last-mile delivery. In her free time, she enjoys sailing, painting, and exploring state and national parks.