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 these negotiations, as announced by the company and the pilots’ union on Monday.
The Air Line Pilots Association (ALPA) did not provide specific reasons for the rejection of the deal, but the vote resulted in a 57% to 43% rejection. FedEx expressed disappointment in the pilot union’s vote but stated that it would not impact their service.
In late session trading, FedEx shares remained relatively unchanged, experiencing only a slight decrease of 0.3% to $258.80.
Captain Chris Norman, FedEx ALPA chair, stated that the union would regroup following the rejection of the deal. The union represents 6,000 FedEx pilots.
The tentative deal offered by FedEx included a 30% pay increase and a 30% increase to the pilots’ legacy pensions.
In a similar development, United Airlines and its pilots, also represented by ALPA, recently reached a tentative deal that included a cumulative pay increase of up to 40.2%.
American Airlines and the Allied Pilots Association are currently revising their tentative deal following the agreement reached by United Airlines. American Airlines pilots indefinitely postponed their ratification vote after the airline improved its offer.
U.S. unions have gained increased bargaining power in negotiations over the past year due to a combination of fewer pilots and a rebound in demand.
Meanwhile, FedEx’s competitor, United Parcel Service (UPS), is currently engaged in contract talks with its 340,000 employees responsible for sorting and delivering packages. The UPS contract is set to expire at midnight on July 31. If these workers go on strike, UPS pilots have stated that they would also cease work.
The article was reported by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles. It was edited by Devika Syamnath, Susan Heavey, and Hugh Lawson.
Lisa Baertlein, the author of the article, specializes in covering the movement of goods worldwide, with a focus on ocean transport and last-mile delivery. In her free time, she enjoys sailing, painting, and exploring state and national parks.
