Tag: USA

With a majority of UPS’ pilots recently voting to strike, analysts say FedEx is taking advantage by offering its 4,300 pilots more than USD500 million in raises and signing bonuses if they agree to work under their 1999 contract and cease negotiations.

“If you are Brand A and you see Brand X in negotiations, your greatest desire is to get your deal done first so the other guy is forced to bargain based on your deal,” said David Field, Americas editor of Airline Business, a London-based monthly magazine. “Whoever signs first stands to have a 1 percent or 2 percent advantage.”

The Independent Pilots Association, which represents Atlanta-based UPS’ 2,483 pilots, and UPS company officials have been in federal mediated talks since last June but have not been able to reach agreement on issues involving scheduling, scope, compensation, pension and benefits.

FedEx Corp. has reaffirmed its earnings outlook for the fourth quarter, saying it continues to see steady economic growth across the U.S. and internationally.

The current average estimate of analysts polled by Thomson First Call is for earnings of USD1.48 a share in the May period.

“The overall strength of the economy, and in particular the strength in the manufacturing and wholesale sectors, should continue to benefit FedEx going forward,” said Frederick Smith, the company’s chairman, president and CEO.

FedEx stock fell 1.2percent on Thursday to USD86.51. So far this year, the company’s shares are down 11percent but are off just over 3percent in the last 30 days.

The announcement comes one day after United Parcel Service UPS backed its earnings outlook for 2005 and said that the company’s domestic business is growing. See full story.