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!

James Founding Partner