FedEx and UPS Pilots Reach Contract Agreement

Terms of a tentative agreement between FedEx Express and the Air Line Pilots Association International (ALPA) have not been released pending ratification, but if approved, the contract would first become amendable in 2010. The two sides, which have been negotiating under the guidance of the National Mediation Board since October 2005 have continued to operate under terms of a contract from 1999. The agreement covers 4,700 pilots at FedEx Express, the largest of the four FedEx divisions.

The tentative agreement came just days before the completion of a successful ratification vote by 2,700 UPS pilots on a contract negotiated through the Independent Pilots Association. That contract included an immediate 18% pay rise with 3%-per-year increases through 2011. The FedEx contract going out to pilots reportedly contains a 9% pay rise and 3% per year through 2010. One report indicates this would put the best-paid pilot at FedEx at about a 45-cents-per-hour advantage over the best-paid UPS pilot.

“We at FedEx Express appreciate the time and effort both sides have put into reaching a resolution that is not only fair to our pilots and their families but also fair to the company and our other employees and shareowners,” said David J. Bronczek, president and chief executive officer of FedEx Express.