Trade Association for Logistics Professionals (TALP) president Spencer Patton is launching a no-confidence vote by FedEx Ground contractors on FedEx Ground CEO John Smith.
Patton claims that small business owners operating FedEx Ground’s network have suffered extreme inflation costs and burdensome contract changes. A fuel surcharge, which U.S. consumers financed, expanded FedEx’s profit margin by 30%, but did not share the funds with the small business owners that actually used the fuel.
TALP estimates that more than one-third of small business contractors have, or will, cease working with FedEx Ground, affecting package deliveries over the holidays.
“FedEx Ground will no longer be able to call this a fictional crisis or the story of one contractor,” said Patton. “This is the story of the U.S. consumer. It’s the story of the American small business owner. Fear grows in the darkness, so now we are going to bring it all into the light.”
An independent global advisory firm will review and confirm the data provided.