Unionized FedEx pilots declined a tentative contract deal Monday that would have boosted pay by at least 30%.
The vote to refuse the deal was close, with 57% of members voting against the measure. Both sides agreed to continue negotiations this week, implying they remain close to an agreement. The reason the deal was rejected was not disclosed by the union.
The company said it was disappointed with the vote’s result but added it will regroup with no slowdown in service.Despite declining the deal, a FedEx pilot strike is not a foregone conclusion. Unlike UPS delivery drivers, FedEx pilots can’t walk out as soon as their contract expires. The pilots, like railway employees, fall under the Railway Labor Act, which requires workers to go through federally mandated union negotiations before they can strike.
The contract talks come amid a pilot shortage, which has given pilot unions strong bargaining power. Major airlines such as Delta, United and American have offered exceptional pay boosts and protection to their pilots this year.
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