http://www.commercialappeal.com/mca/business/article/0,1426,MCA_440_4231636,00.html
FedEx and pilots go into mediation
Negotiations over health care costs and job security have not been fruitful
By Jane Roberts
Contact
November 13, 2005
FedEx Corp. and its pilots have begun their latest round of talks, this time
under the eye of the National Mediation Board, the independent federal
agency that steps in when railroad and airline negotiations are at an
impasse.
While industry watchers have no idea how long the talks will last, they say
mediation is positive because it means both sides are still talking.
"They call these people mediators; they are really magicians trained to find
holes where no one else could," said Michael Boyd, aviation consultant at
The Boyd Group.
The mediator assigned to the FedEx case is John Livingood, whose most recent
assignment has been finding common ground between UPS and its pilots. The
sides have been in mediation since summer of 2004.
FedEx expects a long session because the pilots' union has already rejected
two offers without taking them to the membership for a vote.
"The NMB process is not short," said FedEx spokeswoman Kristin Krause. "It
takes months; it can take years. We hope their experienced hand can help the
process."
At the top of the agenda are health care and job security, sticking points
for the pilots since negotiations began 20 months ago.
Because FedEx is expanding dramatically, it is leasing planes and pilots to
cover the load, and paying the union penalties for the lost work.
To date, FedEx says it owes the union $2 million -- on top of the $300,000
it has already paid -- because it began leasing planes earlier this year and
will have to continue beyond the four-month lease period allowed in the
contract.
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