Pilots Say FedEx Is Bluffing to Avert a Strike

Federal Express, the world’s largest air cargo company, is prepared to become a ground carrier if pilots strike, Chief Executive Ted Weise said. In a letter to the company’s 3,500 pilots, Weise wrote that labor troubles at the company have already prompted several major clients to shift business from FedEx. “In the event of a strike, we can keep traffic moving with a limited air network and a greatly expanded ground network,” he wrote in the letter dated Oct. 30. Leaders of the Fedex Pilots Assn. called the letter an attempt to scare the union into accepting an unfair contract. Last month, FedEx pilots voted to stop working overtime starting Monday. They plan to vote this month on whether to give union leaders the authority to call a strike during the company’s busy holiday delivery season. FedEx pilots are seeking a 24% raise over four years. The Memphis-based company has offered an 18% raise over five years. FedEx pilots earn an average $130,000 per year, little changed since 1993 when they unionized. Federal Express shares rose 94 cents to close at $54.75 on the NYSE.