FedEx Pilots Reach Deal After 5-Year Negotiation Marathon

Key Details FedEx and its pilots union have reached a tentative labor agreement, ending nearly five years of negotiations. The pact includes a nearly 40% hourly pay increase this year, followed by 3% annual raises starting in 2028. Captains will receive up to $150,000 in back pay for missed raises, while first officers get up to $102,500. What's Next The Air Line Pilots Association's Master Executive Council will review the agreement before it goes to all 5,000+ pilots for a ratification vote. A 2023 tentative deal was previously rejected by the pilot membership, extending the lengthy negotiation process that began in May 2021. Why It Matters This agreement is critical to FedEx's airfreight operations and resolves scheduling disruptions caused by the company's ongoing network integration plan. Pilots had raised concerns about operational changes during the multi-year talks. FedEx pilots operate under the Railway Labor Act, which prevents unilateral strikes and required National Mediation Board involvement since 2022. Background FedEx pilots have been working under a contract negotiated in 2015. The new agreement, if ratified, will modernize pay scales and address grievances accumulated during the extended negotiation period.