- FedEx’s largest contractor is calling on the company to give contractors a raise by November 25.
- Spencer Patton told Insider he’s prepared to lose his own business to sound the alarm.
- Patton said Wall Street would “panic” if they knew “the degree to which the network is in danger.”
By Emma Cosgrove | 1 August 2022
BUSINESS INSIDER — FedEx’s largest delivery contractor warned on Wednesday that the company’s thousands of contractors are in “dire” financial shape due to rising costs — and without a hike in compensation, the delivery network could fall apart.
Spencer Patton, CEO of Route Consultant, released a video and press release calling for a 50-cent per stop raise for delivery contractors and a 20-cent increase for long-haul trucking contractors by November 25. Patton has a fleet of 275 delivery trucks and 225 employees.
“The FedEx Ground network is in far more peril than what anyone realizes. If Wall Street analysts, if FedEx corporate, and FedEx ground understood the degree to which the network is in danger, there would be widespread panic,” said Patton in the video.
In August, Patton’s company will hold an annual conference in Las Vegas where FedEx Ground contractors will elect a 10-member committee that will attempt to negotiate with FedEx Ground. Patton said this effort is not a union and the committee will decide what to do if FedEx doesn’t act by November 25. […]