- 8 September 2022
- Transport/logistics services
Former FedEx delivery contractor Spencer Patton has called for a contractor vote of no confidence in FedEx Ground CEO John Smith.
The Trade Association for Logistics Professionals (TALP), whose president is Spencer Patton, has scheduled the vote for this week. Patton launched the group last month to advocate for contractors working for FedEx.
Patton has lobbied FedEx to increase pay for contractors, thanks to company actions that make it even harder for them to turn a profit for their operations.
In response, FedEx severed ties with Patton and filed a lawsuit against him. The lawsuit alleges that Patton disparages Ground through a series of false and misleading statements about his business activities.
Patton was using his position as one of FedEx’s largest delivery contractors to fight for the fair income of his fellow contractors. He said entrepreneurs would be asked to respond to questions anonymously and the data would be reviewed by an independent global consultancy when voting.
“Under Smith’s leadership, small business owners operating the FedEx Ground network have been increasingly burdened with extreme inflationary costs and forced contract changes,” Patton said.
According to TALP, more than a third of the small business contractor network has either moved away from its FedEx Ground network or will soon as high costs will eat into profit margins. However, they did not provide any data on this.
FedEx was asked for comment by Reuters and did not specifically address the vote. However, he said he was committed to creating opportunities for his contractors to thrive in a competitive market.
“Through this, we have and will continue to engage service providers, recognizing that each of these companies is unique and handling these terms differently,” FedEx said in a statement.