FedEx’s Corp. executives expect to keep most of the shipping business the company picked up from rival United Parcel Service Inc. during that company’s labor negotiations this year, and they also believe FedEx could hold onto thousands of package deliveries following Yellow’s bankruptcy filing, according to BofA analysts.
However, he noted: “This is in contrast to UPS’s commentary that it expects to win back a majority of its business, and is willing to pay customer penalties.” As shipping demand remains soft, FedEx is trying to cut billions of dollars in costs by cutting flights and executive roles, closing offices and bumping prices higher. But its workers could end up getting more as a result of the UPS deal: The BofA analysts noted that FedEx anticipates “an increase in labor rates post the UPS Teamster contract, but has built an increase into its annual wage growth expectations.