HomeIndustriesFedEx Faces Delivery Contractor Pay Dispute as Pandemic Boom Fades

FedEx Faces Delivery Contractor Pay Dispute as Pandemic Boom Fades

Transport company FedEx is being pressured by Tennessee businessman Spencer Patton to increase its compensation for its delivery contractors. The 36-year-old businessman is one of the largest contractors for FedEx Ground; the business unit that relies on 6,000 contractors to deliver packages to homes and businesses across the United States. He administers 275 semi-trucks and delivery vehicles that work for FedEx Ground.

“I am not here to be a bomb thrower and to trash FedEx Ground and the CEO,” Patton assured reporters at the contractor conference that he held in Las Vegas over the weekend, explaining that he is simply looking to work together with FedEx Ground in order to find a feasible solution.

Currently, Patton is working to form a trade group representing delivery partners from both FedEx and Amazon.com Inc in an attempt to promote delivery contractors’ interests. Should he be successful in gaining enough traction, FedEx could potentially see its profits squeezed ahead of the peak holiday shopping season.

Although FedEx sent Patton a “cease and desist” letter earlier in the summer, FedEx Ground leader John Smith assured contractors that the company will work to protect their interests. “As the pendulum swings back” from pandemic growth, FedEx Ground remains committed to working with each of you to find solutions,” Smith stated in an internal message.

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