5 Things FedEx Management Wants You to Know

Here's #3, highlights mine:


New pilot contract won't hurt earnings

We think it's a win-win contract. It is in our outlook for not just this year but our strategic outlook [...] where we [...] are expecting to continue to grow our earnings, our cash flows, and our returns. -- FedEx CFO Alan Graf

FedEx reached a tentative contract agreement with its pilot union last month. The pilots haven't ratified it yet, but if they do, they will get raises averaging 10% in November, with steady annual raises for the next five years. The agreement also provides a signing bonus of $20,000-$35,000 (depending on seniority) to make up for missed raises in the past couple of years.

While this was a fairly generous contract offer -- and FedEx's pilots were already near the top of the industry in pay -- FedEx's management stated that it won't impact the company's projected profit growth trajectory. Other productivity-enhancing initiatives will more than offset the pilots' higher pay.






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