Ongoing Contract Negotiations with FedEx Pilots

FedEx remains committed to bargaining in good faith and reaching an agreement that is fair to everyone involved. As we work toward a new agreement, we will continue to deliver industry-leading service to our customers around the world.

The Facts

• The Collective Bargaining Agreement (CBA) between FedEx and its pilots reached in 2015 remains in effect pursuant to the Railway Labor Act (RLA).
• Bargaining for a new CBA began in 2021.
• FedEx and the union representing our pilots (Air Line Pilots Association, Int'l (ALPA)) reached a tentative agreement (TA) in 2023 that included 30% in pay increases, an industry-leading retirement package, and numerous quality of life items sought by the union.
• In June 2023, ALPA issued a press release approving the tentative agreement, which they touted as an "industry leading" contract.
• Though it was endorsed by 13 of 14 ALPA Master Executive Council (MEC) members, current and former MEC Chairs, and ALPA in D.C., it was voted down.
• Shortly thereafter, those MEC members were almost all recalled and replaced, successive MEC Chairs were ousted, and the union Negotiating Committee was replaced by the MEC.
• The parties remain in federal mediation under the supervision of the National Mediation Board (NMB).
• FedEx has since agreed to additional quality of life provisions and economic items sought by ALPA.
• FedEx's last offer included an immediate 24% pay rate increase and 40% over the life of the agreement, which would make our pilots the highest paid in the cargo industry, including UPS.
• FedEx continues to offer an industry-leading retirement package that includes the ability for every FedEx pilot to choose between options based on their specific circumstances and preferences.

Timeline

• May 2021: Contract negotiations begin
• Nov 2021: Contract becomes amendable
• Nov 2022: Parties agree to "expedited mediation" with the NMB
• June 2023: Parties reach tentative agreement (TA) and ALPA MEC approves
• July 2023: TA fails to ratify (43-57%)
• Oct 2023: FedEx pilots elect new MEC Chair - Capt. Billy Wilson
• Dec 2023: ALPA MEC approves resolution to keep its Negotiating Committee in place through April 2024
• March 2024: ALPA breaks off negotiations and files request for proffer with NMB
• March 2024: MEC Chair Wilson is removed by MEC and is replaced by Capt. Jose Nieves
• March 2024: MEC removes Negotiating Committee
• April 2024: NMB denies ALPA request for proffer
• April 2024: MEC selects new Negotiating Committee
• Sept 2024: Parties resume mediated sessions with NMB
• Dec 2024: Sessions for January and February cancelled
• April 2025: Parties resume mediated session with NMB
• June 2025: Mediated session ended midweek; no sessions scheduled at this time

Evolving state of the market

We continue to extensively communicate with our pilots about the current business environment, the redesign of our global air network, and the long-term strategy to profitably grow our business.

FedEx maintains the largest international air cargo network in the world with hundreds of unique international flight segments per week and service to more than 220 countries and territories around the globe.

The FedEx network is evolving to meet market demand and customer needs. While we experienced a reduction in domestic dayside flying in Oct. 2024 with the expiration of the U.S. Postal Service contract, international flight hours for FedEx pilots are up year-over-year. This is partially due to our successful Tricolor initiative, which has introduced new international flights operated by our widebody aircraft, including flights to and from Asia, Europe, and Central and South America. FedEx has a substantial European presence that is anchored by our hub at Charles de Gaulle, the largest hub in our European network. As we continue to adapt to changing market conditions, some intra-European markets are now served with smaller aircraft to more efficiently accommodate current demand.

We look forward to the continued growth of our network and ever improving ability to serve our customers around the world.