Bonanza of Raises and New Contracts Has Yet to Arrive for Cargo Operators

Pilots at FedEx Corporation have once again had to sit powerlessly and watch the execs take in a big haul that won't trickle down into their pockets under the current contract, despite their best efforts across the negotiation table. 

FedEx brought in a reported fiscal year 2024 adjusted operating profit of $6.2 billion, which resulted in the Board of Directors previously approving a 10 percent increase in dividends for shareholders. Unsurprisingly that wasn't a popular move with pilots flying around amidst 3 years of contract negotiations, watching their purchasing power stagnate as their peers across the industry enjoyed some serious improvements to pay, scheduling, and quality-of-life. FedEx recently announced "Network 2.0", a shift aimed at adding more 'shareholder value' by transitioning to a more integrated air/ground operating structure across the company. All throughout, the company just hasn't put much effort into handing off a slice of the pie to the employees putting it in the oven. Throughout fiscal year 2024, in fact, the company has laid off thousands of employees citing "efficiency" in its revised corporate structure. That will continue next year, with at least 2,000 to be axed in FedEx locations abroad. But, FedEx pilots and its ALPA negotiators are adjusting their approach to fit the new corporate strategy.

“While FedEx continues to reward shareholders, employees face substantial headwinds in the strategic transformation effort,” said FedEx ALPA Master Executive Council chair Capt. Jose Nieves. “We expect management to collaborate with us in negotiations. They need to be forthright in their plans and, ultimately, start bringing employees along on the transformational journey in accordance with sound organizational change management practices or risk failure in the process.”

“We recently restructured our approach to negotiations, aiming to address critical gaps in communication and align efforts to produce a tentative agreement that paces strategic change and delivers industry-standard economic value to our pilots commensurate with the value shareholders expect of the Corporation,” added Nieves. Their new approach will embrace the upcoming 'Tricolor' project, ideally allowing pilots to get what they want while ensuring they come out the other side of this contract term without losing headcount. 

FMI: www.fedex.com