Release #11.FDX
March 23, 2011

FedEx Pilots Approve New Agreement with Management
Short duration agreement provides improvements while discussions ongoing

MEMPHIS, Tenn. — The pilots of FedEx Express, represented by the Air Line Pilots Association, Int’l. (ALPA), today approved a unique short duration contract agreement that provides across-the-board increases to hourly pay rates, a pensionable lump sum payment for pilots, increases to domestic and foreign per diem rates, an improved Foreign Duty Assignment Letter of Agreement, three vital safety programs, and other positive modifications.

“We set out in negotiations to provide significant improvements to our pilots in a meaningful time period. Along the way, we recognized that certain opportunities and obstacles gave that goal added significance. We also realized that the current environment, including the uncertain status of the FAA’s flight/duty NPRM, called for a different manner in achieving a collectively bargained agreement,” said FedEx MEC Chairman Capt. Scott Stratton. “In the end, we achieved an agreement that brings meaningful improvements in key areas while positioning us to resolve our remaining issues in the near future. This is a positive departure from aviation industry negotiations which regularly fail to produce agreements in a timely fashion. Our effort to obtain this agreement was led by our Negotiating Committee, chaired by Captain John Gustafson, and backed by ALPA’s professional staff,” Stratton said.

The two-year agreement goes into effect February 28, 2011. The agreement runs through March of 2013 subject to an ALPA option to make it amendable effective March 2012. ALPA must exercise its duration option by January 24, 2012. Accompanying the agreement is a written commitment to engage in discussions throughout 2011 in an effort to narrow, clarify or resolve issues prior to the contract’s amendable date.

“This FedEx agreement is an innovative approach to negotiations. This agreement recognizes that the pilots deserve improvements in pay and benefits, while also allowing ALPA and management to continue discussions on other issues as they move forward,” said ALPA President Capt. Lee Moak. “In particular, given the uncertainty associated with the FAA’s NPRM on flight time/duty time, this short duration agreement is an outstanding achievement.”

Day and night and 365 days a year, the 4,500 professional FedEx pilots – representing the air division of the FedEx brand and helping generate nearly two-thirds of FedEx Corporation’s annual revenue – operate on every continent except Antarctica, making FedEx among the largest and most profitable airlines by any measure. Founded in 1931, ALPA is the world’s largest pilot union, representing nearly 53,000 pilots at 38 airlines in the United States and Canada. Visit the ALPA website at

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ALPA Contact: Courtney Bland, (901) 842-2220