FedEx Pilots Reject Contract Deal, Prompting Renewed Negotiations: Report

FedEx Corp FDX pilots are reportedly likely to reopen negotiations after rejecting a tentative contract deal.

FDX pilots rejected a tentative contract deal with the parcel delivery firm, and the two sides will reopen negotiations, likely under the supervision of the National Mediation Board, reported Reuters, citing the company and the pilots' union.

The proposed FedEx deal included a 30% pay rise and a 30% increase in the pilots' legacy pensions, as mentioned in the report.

The pilots voted 57% to 43% to reject the deal. However, no detailed reason was provided by Air Line Pilots Association (ALPA).

"Our members have spoken and we will now regroup and prepare for the next steps. In the coming weeks, the FedEx ALPA leadership will meet to establish a timeline for assessing pilot group priorities moving forward," stated Captain Chris Norman, FedEx ALPA chair.

FedEx said it was "disappointed" by the pilot union vote, but it would "have no impact on our service."

FedEx's competitor, United Parcel Service Inc UPS, drivers and supporters rallied in different cities across the U.S. over the weekend, including San Francisco and Atlanta, ahead of a potential strike starting next week.

UPS is ready to return to the bargaining table with a better offer for roughly 340,000 Teamsters-represented U.S. workers to avert a potentially economically damaging strike on August 1, 2023.

Price Action: FDX shares closed lower by 0.35% at $258.77 on Monday.

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