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Will we see a FedEx strike this year? - ShipRx
Blog / Will we see a FedEx strike this year?
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Will we see a FedEx strike this year?

Last year, UPS narrowly averted a strike with 340,000 UPS employees represented by the International Brotherhood of Teamsters. At the same time, 57% of FedEx pilots rejected a new contract that would mark the “highest value achieved among major carriers in the last twenty years,” according to Air Line Pilots Association (ALPA) Capt. Jason Ambrosi.

Last summer, we assured our readers that a FedEx strike wouldn’t happen anytime soon. Now, the union representing FedEx pilots is making moves that could open the door for a strike. Keep reading to discover the regulations that have prevented a strike thus far, FedEx pilots’ reasoning for rejecting a 30% pay increase offer, FedEx’s stance on the negotiations, and how you can secure savings— no matter what happens.

Why did 57% of FedEx pilots vote against the terms of the proposed contract?

For almost three years, ALPA and FedEx have been in talks over the terms of a new contract. When the majority of pilots voted against the new contract last year, they cited issues with its level of job protection, back pay, quality of life considerations, pension options, and proposed wage increase compared to pilots of passenger airlines.

The law that may prevent a strike

The Railway Labor Act (RLA) is a federal law that regulates labor relations in the rail and airline industries, aiming to avoid interruption of interstate commerce. Trucking doesn’t fall under this act, making it easier for UPS Teamsters to plan a strike. However, FedEx pilots do. To avoid financial damage to the economy, the president of the United States can mandate a months-long cooling-off period, and Congress can take action to block the strike.

Mediated negotiations recommenced in November, but with no deal in sight, the union requested that the National Mediation Board be released from the mediation process. This would enable the pilots to go on strike until a new contract is approved.

FedEx’s response to the union’s request

In a media release on March 8, 2024, FedEx shared, “We strongly disagree that a release from mediation is appropriate,” calling it “a common union tactic” and blaming “continuous changes in union direction and leadership that have hindered progress toward a new deal.”

So what happens next? FedEx’s media release clarifies that the carrier “remains steadfastly committed to bargaining in good faith and reaching an agreement that is fair to all stakeholders.” Going forward, they “believe the mediation process under the supervision of the National Mediation Board – which ALPA requested – remains the best way to achieve that goal.”

Savings with FedEx— no matter what happens with ALPA

It is unlikely that we will see a FedEx pilot strike, as the Express business accounted for almost half of the carrier’s $90 billion revenue last year. Nonetheless, now is a great time to protect your shipments and your spending with parcel rate negotiations and parcel audits.

When you trust ShipRx with your savings, you can spend less on your yearly shipments and receive automatic refunds for service failures and incorrect charges. Get in touch for your free savings analysis today!

 

 

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