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FedEx Archives: 1998 Press Releases

( BW)(FEDERAL-EXPRESS)(FDX) FedEx Declines to Dispute Status Under Railway Labor Act; Self-Help Status of FedEx and FedEx Pilots Clear

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Nov. 4, 1998--Federal Express Corp. (NYSE:FDX) ("FedEx") confirmed today its position that FedEx and the FedEx Pilots Association ("FPA") are presently able to engage in self-help actions. In a motion filed today, FedEx asked the U.S. District Court for the District of Columbia to dismiss the lawsuit initiated by the FPA to obtain clarification of the issue, since no controversy on FedEx's part exists about whether the parties are permitted to engage in self-help.
    The Railway Labor Act governs labor relations at FedEx and provides that both employers and unions may initiate self-help actions, after mediation efforts have been exhausted and expiration of a cooling off period. The cooling off period expired on Nov. 25, 1995. The motion filed today, if granted, clears the way for either side to engage in self-help.
    "FedEx made enhanced contract proposals to the FPA in talks last week. The company's proposal would give them the top retirement program in the industry, the most generous vacation package, job security commitments, scheduling and quality of life improvements and a 17 percent base compensation increase over a five-year period. The company's proposal, had it been accepted, would put our pilots number two in the entire U.S. airline industry in compensation and benefits," said FedEx President and Chief Executive Officer Theodore L. Weise. "The FPA has been unreasonable in its negotiating position, and it did not permit its membership to see and vote on our contract proposal. The FPA is following a pre-determined course that ignores the needs of our customers and could pose consequences to our business," said Weise.
    "Today's action clearly demonstrates FedEx's commitment to balance the needs of our other employees, customers and shareholders, and we will be providing information to each of these groups on our service capability and implementation of our contingency plans," said Weise. "Our volume and service levels at FedEx remain strong, and our customers have shown encouraging confidence in our ability to meet their service requirements."
    Contract talks between FedEx and the FPA have been suspended. No date has been set for negotiations to resume.

     --30--KO/na*

     CONTACT:  Federal Express Corporation, Memphis
               Bill Margaritis, 901/395-5007
               http://www.fedex.com

     KEYWORD:  TENNESSEE CALIFORNIA
     INDUSTRY KEYWORD:  TRANSPORTATION TRAVEL/AIRLINES