FedEx Pilots Face Dues Hike

MEMPHIS, Tenn. (AP) — The Fedex Pilots Association will ask members to pay higher dues to make up for hundreds of thousands of dollars spent on threatened job actions and other work that led to their first contract with Federal Express Corp.

Newly elected FPA leaders say they have imposed new cost controls, but the union depleted financial reserves late last year in preparation for a possible strike or work slowdown. The money was used to lease office space, buy computers and telephones, and pay pilots, consultants and staff members.

The union's pilots have been paying double their normal dues since August but rejected a measure in January that would have extended the higher rates.

On Feb. 12, union secretary-treasurer Jim Straw abruptly resigned, saying he had a philosophical disagreement with the union's board.

"FedEx pilots have never wanted to pay for representation," he said. "Running a union is a very expensive proposition. Right now the FPA has enough money to operate, but it's not building its reserves for future contingencies."

Mike Weiland, who became the association president Feb. 5, plans to propose an annual budget of $6 million, or an average of $1,667 a year for each pilot. He said the union plans to present the plan to its members for a vote in the next two months.

Association members now are billed one hour of pay each month for union dues. FedEx pilot pay ranges from $36 to $150 an hour.

"There's absolutely no concern about the financial condition of the union right now," Weiland said. "We're on very sound financial footing. But we've got some ambitious goals, and we're going to be looking for a dues increase."

Straw said association membership has reached 98 percent, the highest level ever among FedEx's 3,600 pilots.

For years, the group was bitterly divided between pro- and anti-union factions, and those who favored an independent union over a national organization.

On Feb. 4, the pilots approved a contract after five years of on-again, off-again negotiations, making them the only FedEx employees in the United States represented by organized labor.

"The last six months have been incredibly rewarding," Straw said. "Our pilots are finally speaking with one voice. That's far more important than any individual."

Memphis-based FedEx is the world's largest cargo airline, with 145,000 employees worldwide shipping more than 3 million items to 211 countries each day.