FedEx, pilots work out tentative deal

After more than two years of talks, FedEx Express, the largest of four divisions of Package delivery company FedEx Corps division and the Air Line Pilot's Association union have reached a tentative agreement on a new contract.

FedEx Corp. is the second-largest U.S. package shipping company. It has been trying to arbitrate with the union of its pilots for almost 30 months. The two parties have been negotiating since March 2004. In October 2005 the National Mediation Board stepped in to help with negotiations, when the two sides couldn't agree.

The agreement has finally been reached and is subjected to review before being finalized. According to the details that were available, the contract calls for a 9% raise for all pilots in the first year and 3% raises in each of the following three years.

“We're gratified that the collective bargaining process has produced solid contract improvements that acknowledge our pilot group's contributions to FedEx and we appreciate the company's commitment to these negotiations,” said union leader David Webb.

Terms of the deal will not be released until it gets approved by the union's executive council. 4,700 FedEx pilots will then vote on whether to accept the new contract or not. The contract will not be up for negotiations again, until 2010, if it gets approved now.

“Not only fair to our pilots and their families but also fair to the company and our other employees and shareowners,” said FedEx CEO David Bronczek.

FedEx Express, the largest of the FedEx divisions, carries shipments by plane for delivery in one to three days. As the global demand for faster shipments is rising the company is going under expansion. The financial year ending May 31 saw FedEx Express revenue rise 10 percent to $21.4 billion.