FedEx (NYSE:FDX) Pilots Hold a Protest in an Unexpected Place
The peak shipping season is just a few weeks away, and FedEx (NYSE:FDX) pilots are protesting the lack of a new pilot contract.
FedEx Corporation (NYSE:FDX) pilots picketed in Memphis, Tennessee, in front of the company’s Air Operations Center in June to voice their displeasure at the lack of a contract.
The speed of discussions on a contract to raise salary, retirement benefits, and quality-of-life concerns has the pilots expressing their displeasure.
The seasons changed, and the months went by, but that protest produced no results. Now, as the holiday shopping season is about to start, the pilots have chosen a new venue to make their opinions heard: the New York Stock Exchange.
On September 26, officials for FedEx Express said that pilots, crew members, and supporters organized “an educational picket” in front of the historic building.
More and more frustrated with FedEx (FDX)
Since May 2021, the pilots and the Air Line Pilots Association, International have been in contract negotiations.
Capt. Chris Norman, chair of the FedEx ALPA Master Executive Council, said in a statement that “FedEx pilots are growing more frustrated every day that passes without an agreement, and with peak shipping season around the corner, it’s imperative that management fully commits to reaching a new pilot contract.”
“For years, our pilots have been making on-time deliveries to the world; now it’s time for the firm to acknowledge this, “Roger added. The current award of an industry-leading pilot contract is essential to FedEx’s continued growth.
The organization tweeted, “FedEx pilots assemble ahead of today’s educational picket on Wall Street.” “#NowIsTheTime for FedEx to acknowledge our contribution to company development and success. THE TIME IS NOW for corporate executives to reward our group efforts with a contract that leads the sector.”
The Collective Bargaining Agreement between FedEx and its pilots becomes amendable in November 2021, according to a statement from FedEx (NYSE:FDX).
The statement added that since May 2021, “the parties have been bargaining and have made great progress toward a new agreement.” These talks are a routine aspect of our business and have no impact on the level of service we continue to provide to our clients worldwide.
Dealing with These Headwinds
According to FedEx Corporation (NYSE:FDX), “will continue to negotiate with our pilots in good faith and is dedicated to finding an agreement that is fair to our pilots, our other team members, and all other stakeholders.”
FedEx (NYSE:FDX) issued an unexpected earnings warning earlier this month, citing slowness in shipment volumes that grew throughout the summer.
The business revised its fiscal first quarter profit projections considerably below Wall Street’s average and lowered its full-year expectations.
As macroeconomic conditions drastically deteriorated later in the quarter, both worldwide and in the US, global volumes decreased. Although we are acting quickly to resolve these challenges, the first quarter earnings fell short of our expectations considering how quickly things changed, according to CEO Raj Subramaniam.”
Amit Mehrotra, a Wall Street analyst with Deutsche Bank, reduced his price objective for FedEx from $320 to $190 while maintaining a Buy rating for the stock. Other Wall Street analysts also reduced their price estimates for the business.
“We are concerned that the business took little to no responsibility on the recent dismal results and forecast, instead apparently blaming the whole deficit on economic difficulties,” Mehrotra said in a research report.”
A Delayed Reaction
The analyst stated that it was difficult for him to comprehend that the $500 million profit reduction materialized in just one month. He believes it is “indicative of a delayed response to hazards that should have been anticipated,” instead.
Not just FedEx (NYSE:FDX) pilots must cope with contractual difficulties.
On September 26, 1,000 days have passed since the Delta Air Lines (DAL) pilots’ contract became amendable on December 31, 2019, marking an important turning point in their contract discussions.
According to union officials, the pilots are employed under a contract that became effective in 2016.
Capt. Jason Ambrosi, leader of the Delta ALPA Master Executive Council (MEC), stated in a statement that Delta has “spent billions in stock buybacks, international carriers, and fully owned subsidiaries as well as rewarding our fellow colleagues with salary rises.” “Management acknowledges the pilots’ leadership. We are still operating under the salary rates, employment conditions, and benefits that were agreed upon six years ago.
Delta said that earlier this year, after being put on hold for over two years due to the covid-19 outbreak, Delta, ALPA, and a representative of the National Mediation Board resumed mediated contract discussions.
The airline stated that its objective was to keep offering its pilots “an industry-leading overall contract with the best remuneration based on salary, retirement, and profit sharing.” “Additionally, we’re dedicated to ensuring that the contract wording supports our capacity to manage a top-notch operation, keep a healthy balance sheet, and invest in our company for the benefit of both consumers and employees.
When President Joe Biden announced a tentative agreement in the previous month, a significant railroad strike was avoided.
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