Former FedEx Ground contractor Spencer Patton has launched a vote of no confidence in Ground President and CEO John Smith, with contractors able to anonymously respond to the vote through Friday, according to a news release Tuesday.
The vote will allow FedEx's board of directors and shareholders to hear directly from Ground contractors as they grapple with elevated fuel, vehicle and wage costs while FedEx enjoys expanded profit margins, Patton said in a video. An independent advisory firm will verify the data, he added.
Contractors will be asked the following questions, according to a spokesperson for Patton:
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At this time is your FedEx Ground business profitable?
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How satisfied are you with your current financial relationship with FedEx Ground?
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In the past 12 months have you had an end of agreement contract renewal/renegotiation?
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If Yes, what was the outcome of your end of agreement contract renewal/renegotiation?
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In the past 12 months have you requested renegotiation outside of your end of agreement?
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If Yes, what was the outcome of your renegotiation request?
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Do you have confidence in John Smith to lead FedEx Ground as CEO?
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Do you fear retaliation from FedEx Ground if you voice dissenting opinions?
“Our position is, and always has been, that we are committed to creating opportunities for service providers to thrive in a competitive market,” FedEx said in a statement, adding it will "continue to engage service providers, recognizing each of these businesses is unique and managing through these conditions differently.”
Ground sued and terminated its business deals with Patton, president of contractor group the Trade Association for Logistics Professionals, amid his public campaign for the company to provide better compensation and other changes to the 6,000 contractors conducting its pickup, delivery and linehaul services.
"No longer will FedEx's narrative stand that this is a Spencer Patton story," Patton said of the vote of no confidence.
The former contractor announced the launch of the Trade Association for Logistics Professionals in August, a non-profit organization that aims to voice concerns, petition for changes and potentially launch legal challenges against Ground. The organization "estimates more than one-third of the small business contractor network has already, or will soon need to, walk away from their FedEx Ground contract, resulting in FedEx Ground being unable to deliver packages in a timely matter during the upcoming holiday season," according to the release.
FedEx said in its statement that it’s “investing in strategic initiatives” to ensure strong peak season service. However, it noted in its lawsuit against Route Consultant, the contractor consultancy founded by Patton, that it has been advised that other Ground delivery providers may be considering withholding service on Black Friday in support of Patton’s campaign.
