FedEx, Pilots Head Back to the Table

Federal Express and its unionized pilots restarted stalled contract negotiations after the pilots promised not to strike during the peak holiday shipping season.

The FedEx Pilots Assn., which represents most of the company’s 3,500 pilots, agreed not to count strike ballots this week as planned, opting instead for a 60-day cooling-off period while talks resume. The union’s decision means that any potential service disruption has been pushed back to February, ensuring that FedEx will continue normal operations during the package industry’s busiest time of the year.

“The big message is that shipments will continue through the busy holiday season as scheduled,” said FedEx spokesman Jess Bunn. He said the decision by both parties to return to the bargaining table is a “win-win for our customers, our investors and our employees.”

In addition, the pilots resumed working voluntary overtime hours again, something they had stopped doing earlier this month in order to increase the pressure on the company.

On Nov. 20, the union’s board of directors ordered FPA President Frank Fato “to deal with FedEx in a manner to re-engage them in negotiations, with the goal of achieving a contract,” according to a statement by FPA Vice President Byron Cobb.

“The board made this decision to emphasize our commitment to our customers, fellow employees and our company,” Mr. Cobb stated. “It remains our sincere desire to achieve an industry standard contract that meets the needs of our membership without damaging the reputation of Federal Express.”

The company said that despite the union’s action, it would honor the commitments it has made to give freight to outside trucking companies and airlines as part of a contingency plan to protect itself from a strike. But FedEx, the world’s largest air express carrier, agreed not to open any new contracts with outsiders.

Douglas W. Rockel, transportation industry analyst at ING Baring Furman Selz in New York, said the union “got cold feet” just as its leverage appeared to be increasing.

The two parties met formally Nov. 23 for the first time since Oct. 30. Neither side would discuss the negotiations, but Fred Smith, chairman of FDX Corp., which owns FedEx, had already rescinded the carrier’s most recent contract offer before talks resumed. He said the contingency plan had grown too costly to honor the proposal.

For the full story, see the Nov. 30 print edition of Transport Topics. Subscribe today.

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