Leaders of the bargaining unit for FedEx pilots have approved a tentative contract first advanced by negotiators on May 30 that features a 30% pay raise and improved pension advantages, the Air Line Pilots Association said late Monday.
No details were provided when the edges announced a preliminary labor agreement two weeks ago, and the FedEx Master Executive Council under ALPA didn’t even have time to review it. The signoff from union council chiefs means the deal will now go to rank-and-file pilots for a three-week ratification vote that begins July 5.
The brand new agreement would offer major pension improvements with alternative pension options, significant hourly pay rate increases, a retroactive recovery payment for the 18-month period when the contract was open for amendment and other quality-of-life improvements, in keeping with an ALPA news release.
Along with a 30% pay increase, pilots won a 30% increase to the legacy pension and a company-funded substitute for the legacy pension. ALPA said it’s the most important investment in a pilot contract, on a per-capita basis, and that it substantially raises the bar on pilot retirement.
The Master Executive Council will share the total contract language with members, publish detailed information in regards to the agreement online and go on the road to put it on the market.
“We took a membership-driven approach to those negotiations, with polling and direct feedback throughout the method. We negotiated an industry-leading contract and achieved improvements contract-wide. We stay up for presenting the agreement to our pilots for consideration,” said Master Executive Council Chairman Chris Norman, a FedEx captain. “The improvements to our retirement stand out. Not only did we accomplish major improvements to the present pension profit — improvements that we sought and management bitterly resisted in past negotiations — but we also crafted a brand new pension plan that sheds the negative funding facets of our current plan. The brand new plan is totally sustainable and ensures that the prices of the plan charged to the corporate match the worth that goes to the pilots. It’s an incredible accomplishment.”
The specter of a strike overshadowed FedEx Express (NYSE: FDX) management because it tries to restructure the air network to chop costs while maintaining customer loyalty in a down market. The 2 sides were negotiating with the assistance of a federal mediator, and the union membership had given leaders the ability to call a strike at the suitable time.
A strike was not imminent because federal law governing airline labor relations requires each side to follow a lengthy process before anyone can take unilateral motion.
If ratified, the brand new contract will go into effect in August and change into eligible for change in 2028.
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