The board of the FedEx pilots’ union on Thursday signed off on a tentative contract agreed to by its negotiating team and the company last week, and will now present it to rank-and-file members for a ratification vote.
The Air Line Pilots Association said the FedEx Master Executive Council voted to advance the five-year contract to a vote with a positive recommendation. The decision was expected. Balloting will open on May 12 and close on June 9, ALPA said in a news release. If ratified, the tentative agreement will become the new collective bargaining agreement between FedEx (NYSE: FDX) and its 5,000 pilots, effective June 29.
Pilots will receive a 40% increase in their hourly pay and other benefits, along with back pay (up to $150,000 for captains and $102,500 for first officers) to account for delayed raises during negotiations, according to a copy of the agreement posted on a union website. Starting in 2028, they will receive 3% annual raises.
Pilots will have a lot of topics to review in deciding how to vote on the proposed contract. The agreement covers everything from vacation, hours of service, and scheduling to medical standards and passenger airline travel to departure bases.
It took five years of difficult talks and the help of the National Mediation Board to reach a tentative agreement. The sides worked out a deal in 2023, but the pilots voted against it.
In fiscal year 2025, ended May 31, revenue inched up to $87.9 billion, while adjusted operating income inched down to $6.1 billion with a 7% operating margin. Adjusted diluted earnings per share were $18.19 compared to $17.80 in 2024.
Through the 2026 fiscal year third quarter, ended Feb. 28, revenue was up 6% to $69.7 billion. Operating income increased 14% to $3.9 billion.
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Write to Eric Kulisch at ekulisch@freightwaves.com.
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FedEx, pilots agree on tentative contract after 5 years of talks
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