FedEx, Pilots Close to Agreement

MEMPHIS, Tenn. (AP) — Federal Express and leaders of its pilots union say they may well have a tentative work contract in place by Christmas.

"The pace of negotiations has picked up considerably, with all major areas being discussed," Frank Fato, president of the Fedex Pilots Association, said Monday.

he union said in a statement it expected to have an agreement to present to pilots "prior to Christmas."

Company spokesman William Margaritis said substantial progress was being made and an agreement could be reached "in the very near future."

Contract talks broke off in October but resumed Nov. 20 when the union ended the threat of a possible strike during the holidays.

The move came after FedEx chairman Frederick Smith warned the pilots they might lose their jobs if they struck.

Federal Express has since backed away from strike-contingency plans that called for leasing cargo planes and crews from other companies.

nion spokesman Bob Clement declined to comment on what contract issues had been settled and which were still in negotiation. But he said it was important for FedEx customers to know talks are moving ahead.

This is an opportunity for the union to go out and reassure the (FedEx) customers that the service they expect from Federal Express ... looks like it's going to be there for years to come," Mr. Clement said.

The FPA, an independent union, has represented FedEx fliers since 1996, when they withdrew from the Air Line Pilots Association. The ALPA began negotiations with the company in 1993

ut never won a contract.

he company's 3,500 pilots are its only U.S. employees represented by a union. FedEx has more than 114,000 employees worldwide.

rior to the break in negotiations, the pilots sought a pay raise of 24 percent over four years, while the company offered 17 percent over five years. The pilots also said they wanted assurances about job security and retirement benefits.

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