FedEx terminated a deal with its largest contractor, who was poised to form a union-style trade association to resolve workplace grievances and pay disputes.
“We can confirm FedEx Ground exercised its rights to immediately stop contracting with a small number of service provider businesses owned by one individual,” according to a FedEx Ground statement. “While those businesses operate in several locations, they constitute less than 0.5 percent of the approximately 60,000 total routes across the FedEx Ground network. We have contingency plans in place and do not anticipate any impact to service based on these contract actions.”
Spencer Patton, who oversees 225 routes across 10 states, recently launched the Trade Association for Logistics Professionals ahead of a Las Vegas conference. More than 4,000 contractors reportedly attended the gathering. The event was set to culminate in the Sept. 12 election of a 10-person leadership board to collectively bargain with FedEx. The household name doorstep delivery went on the record indicating it would not work with the Trade Association for Logistics Professionals. Instead, the dispute escalated with FedEx filing a civil lawsuit against Patton.
“I am not afraid of a lawsuit from FedEx. For years FedEx Ground has used bullying tactics when interacting with their contractors to create an environment of intimidation,” Paton reportedly said. “This move to cancel our contracts is a clear case of a $60 billion corporation silencing anyone with a voice.”
Approximately 800 fellow FedEx contractors signed a letter outlining the adversity they faced from rising fuel prices and diminished profits. From 2020 to 2021, contractors reportedly suffered a 20-percent payout reduction. That’s largely due to rising operational expenses and declining wages.
“We are being squeezed quite a bit. And our contracts are changing,” FedEx contractor Vikram Sekhon reportedly said. “If you look at historically what we are getting paid per stop — that has reduced by 30 to 40 percent.”
Patton has gone on the record stating he would shut his 225 routs down by Thanksgiving unless FedEx made substantial operational and contractual changes. He also urged fellow FedEx contractors to re-evaluate holiday compensation and expectations.
“My heart is in this to see FedEx Ground make lots of money,” Patton reportedly said. “I just need to see the contractors make money as well.”
The civil lawsuit filed against Patton seeks injunctive relief that would prevent the now-former contractor from making disparaging remarks or spreading misinformation. FedEx also claims Patton is stoking the flames of a “fictional crisis.”
Sources:
https://www.businessinsider.com/fedex-contractors-soaring-fuel-prices-out-of-business-2022-3
https://www.businessinsider.com/why-fedex-lawsuit-spencer-patton-delivery-contractor-timeline-2022-8
https://www.foxbusiness.com/markets/fedex-cuts-ties-ground-delivery-contractor-files-suit
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