FedEx has reached a tentative agreement with its pilots union, marking a significant step toward resolving a multi-year labour dispute.
The deal, covering more than 5,000 pilots, includes wage increases of nearly 40% this year, followed by annual increases of 3% starting in 2028. The agreement will now be reviewed by union leadership before being put to a ratification vote.
Negotiations between FedEx and the Air Line Pilots Association began in 2021. A previous agreement reached in 2023, which included a 30% pay increase, was rejected by pilots, leading to renewed talks.
Union representatives have highlighted growing operational pressures, including increased workloads and rising pilot attrition levels in recent months.
The agreement comes as FedEx continues to restructure its operations under its Network 2.0 strategy, integrating Express and Ground networks while redesigning its air cargo system to improve efficiency.
