In the wake of a pending strike from UPS pilots, FedEx pilots have been able to reach a new six-year contract with FedEx management. The FedEx pilots, represented by the Air Line Pilots Association, are now under a new contract that will take over in November, with the option to amend in 2021. With the new contract, FedEx is able to avoid the problems UPS has had in recent months.
The new contract brings pay raises for hourly employees as well as higher new-hire compensation. Singing bonuses increased and work-rule improvements were made. Retirement plans were also boosted. Once the changes were made, the agreement was presented to the FedEx unit of the ALAPA, where it remained open for about a month. In the end, the pilots and their representatives voted in favor of the changes, indicating that the changes were largely positive ones that pointed to the contributions of the pilots to the overall success of the company.
In the end, 57 percent of the pilots voted in favor of the contract, and 43 percent voted against it. While not an overwhelming majority, this was still a majority, and the contract as approved as a result.
This vote comes after over two years of formal negotiations. The negotiations between ALPA and FedEx began in January of 2013, and the final vote was closed on October 20, 2015. This length of time shows the challenges of negotiating with pilots for these major shipping companies. While a strike is the least desirable outcome, it’s always a possibility, and without pilots these shipping companies would struggle to stay afloat. The FedEx agreement comes just in time as the busy shipping season is about to start.