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FedEx pilots reject pay hike in new labor deal, package included boost in pension benefits

The contract was reached in May and endorsed by union leadership.
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(KERO) — FedEx pilots have rejected a tentative labor deal that included a 30 percent pay increase. The package included an equal boost in their pension benefits.

The major objections from the pilots are not yet clear. Fifty-seven percent of the FedEx pilots who belong to the Airline Pilots Association voted against the proposed contract.

The contract was reached in May and endorsed by union leadership.

Even with the "no" vote, the 5,200 FedEx pilots won't be able to go on strike any time soon. That's because there are a lot of hurdles that have to be cleared first.

The union says it will go back to the bargaining table in search of a deal membership will accept.

The rejection comes amid a well-documented pilot shortage nationwide for both passenger airlines and cargo carriers. The shortage has put pilots in a position to win large pay increases.

For example, United Airlines just reached a deal to give its pilots a raise of up to 40 percent.