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FedEx Issues Warning to Pilots Union

November 20, 1998| Times Wire Services

FDX Corp.'s Federal Express Corp. told its pilots their strike threats have already hurt FedEx but warned that they may lose their jobs if they walk out. Chairman Fred Smith also rescinded the company's latest contract offer in an angry e-mail sent to the 3,500 pilots Wednesday night. Leaders of the Fedex Pilots Assn. said the e-mail would not make the union back away from its demands for greater job security, control over work rules and a pay raise. No new talks are scheduled. The Air Line Pilots Assn., the nation's largest pilots union, expressed its support for FedEx pilots. Negotiations on a contract broke off Oct. 30. Separately, the Memphis, Tenn.-based company was slapped with a $325,000 civil penalty for shipping hazardous materials such as seam sealant, hydrochloric acid and butane lighters in violation of federal law, the Federal Aviation Administration said. Federal Express representatives could not be reached for comment on the alleged violations, but the FAA said the company has requested a conference to appeal the fines. Shares of FDX closed down 25 cents at $58.81 on the New York Stock Exchange.

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