Many may not realize that some drivers seen wearing FedEx uniforms are actually working for contractors and not directly employed by FedEx itself. There is a growing problem between FedEx and these contractors, who deliver a huge amount of the packages.
Many of these contractors, who work delivering packages for FedEx's Ground business, report that they are losing money in the deals. This comes even while revenues have reportedly jumped over 60% since before the start of the pandemic, CNN Business reported.
Around 3,500 FedEx Ground contractors, along with other professionals in the industry, gathered at the Route Consultant's 2022 Contractor Expo in Las Vegas in August to discuss inflation-based contractual challenges facing the industry. Patton's company is one of the largest contractors with FedEx Ground and is one of the most vocal critics of the company's work with contractors. Patton also wants customers to know that it's mostly contractors delivering packages for FedEx.
Patton said the current model"is hurting to a degree where my company individually has to see change from FedEx Ground.”Patton, as Supply Chain Dive noted, said during his speech that he would stop operating his delivery routes as of Nov. 25 unless FedEx makes updates to the terms of his contract.
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