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FedEx reaches tentative wage deal with pilots after years of talks
The agreement covers more than 5,000 pilots and includes retroactive lump-sum payments of up to $150,000 for captains, the union said.
On Wednesday, FedEx and the Air Line Pilots Association reached a tentative labor agreement covering more than 5,000 pilots, ending five years of contract negotiations.
Negotiations began in May 2021 but stalled after pilots rejected a 2023 tentative agreement offering a 30% raise. The National Mediation Board oversaw talks since 2022 under federal labor law.
Hourly pay will increase by nearly 40% in 2026, with 3% annual raises starting in 2028. Captains receive up to $150,000 in retroactive pay; officers receive $102,500.
The FedEx Master Executive Council will review the tentative agreement, then present it to pilots for a ratification vote. This procedural step is required before the contract takes effect.
Under the Railway Labor Act, pilots cannot unilaterally strike, ensuring operational continuity. The deal arrives as FedEx integrates air and ground networks, addressing ALPA concerns over scheduling disruptions.