FedEx Express Requests National Mediation Board Assistance


MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 6, 2005--FedEx Express, a unit of FedEx Corp. (NYSE:FDX), today requested the assistance of the National Mediation Board (NMB) in completing its ongoing pilot negotiations. The company and its pilots, represented by the Air Line Pilots Association, have been engaged in active contract talks since March 2004.

FedEx sought to resolve the contract negotiations without the assistance of the government agency. The union leadership, however, refused to present the Company's first comprehensive contract proposal to its membership for a vote, and since then has failed to moderate its demands sufficiently to justify continuing with the current process. As a result, the company elected to request NMB assistance. NMB-led mediation is a common step in the process of airline negotiations.

FedEx pilots already have one of the best overall contracts in the airline industry. Earlier this year, the Company offered a comprehensive contract proposal containing compensation improvements worth more than $500 million over the life of the contract. Last week, the Company made another comprehensive offer that included signing bonuses, pay increases and work rule changes designed to address many of the issues raised by the union. Both company offers would have cemented FedEx crewmembers' position as the best compensated pilots in the aviation industry.

"FedEx has worked very hard to move these negotiations forward so both the company and the pilots have economic certainty in today's ever-changing aviation industry," said David F. Rebholz, executive vice president, U.S. operations for FedEx Express. "We are confident that with the assistance of the NMB, we will be able to bring these talks to a successful conclusion for all concerned."

The current contract became amendable on May 31, 2004. Under the Railway Labor Act, the contract terms remain in effect until the RLA process is exhausted.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $30 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brands. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 250,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities.