FedEx and the union representing more than 5,000 of its pilots have reached a tentative labor agreement, the two sides announced on Wednesday, following talks that began in May 2021. The proposal lays out a schedule of substantial wage increases and retroactive pay for pilots, subject to further review by union bodies.
Terms of the tentative deal
Under the terms disclosed by the pilots' union, hourly pay for FedEx pilots would increase by approximately 40% in 2026. After that initial adjustment, the agreement calls for annual increases of 3% in each year from 2028 through 2030. In addition to the future wage schedule, the deal includes retroactive payments for pay missed during the course of negotiations: captains would be eligible for up to $150,000, while first officers could receive up to $102,500.
Process and oversight
The union said the tentative agreement will next be presented to the FedEx Master Executive Council for review. The talks that produced the deal were conducted under the supervision of the National Mediation Board, according to the union's statement.
Company confirmation and fleet context
FedEx confirmed that a tentative agreement has been reached with its pilots' union. The company operates a large cargo air fleet, with 390 cargo jets and 313 turboprop aircraft by plane count, a scale noted in the announcement.
Prior vote and lingering considerations
The announcement follows a narrowly defeated tentative agreement in 2023. In that earlier vote, pilots rejected a package that would have provided a roughly 30% pay increase and improved pension benefits after concerns were raised by younger pilots about outsourcing. That prior outcome illustrates that tentative deals can face resistance from membership, and the current agreement will similarly be subject to internal review and any subsequent ratification processes.
Note: This article reports the terms and next procedural steps as stated by the union and the company. It does not assert outcomes beyond those described in the tentative agreement and the stated review process.