FedEx cuts ties with ground delivery contractor, files suit

Date:

FedEx Corp has cut its relationship with one of its largest delivery contractors with immediate effect.

The parcel delivery company filed suit and asked a federal judge to stop the contractor from spreading misinformation about his company for financial gain.

Spencer Patton has 225 FedEx Ground routes in 10 states, as well as companies that provide services to the approximately 6,000 U.S. contractors who transport and deliver packages for that unit.

Patton has said for weeks that up to 35% of FedEx Ground delivery providers are at risk of financial hardship. He urged leaders to improve compensation and gathered “peers for his cause”.

FEDEX GROUND CONTRACTORS REQUEST INFLATION ASSISTANCE TO AVOID DELIVERY INFLUENCE: ‘HUGE FINANCIAL STRESS’

The exterior of the new FedEx Ground Station Chicago Loop is on display in Chicago, Illinois. (REUTERS/Kamil Krzaczynski/File Photo/Reuters Photos)

“Actually, what I’ve been advocating and really raising public awareness about is that we’re in huge financial trouble,” Patton, founder and president of Route Consultant, told FOX Business’s Dagen McDowell about “Mornings with Mariain an interview earlier this month.

“We’ve seen our fuel prices double in a year. We’ve seen our wages rise, our car costs have risen,” Patton said at the time. “And I’m sounding the alarm that the risk of network outages in FedEx Ground is as great as I’ve ever seen.

FedEx’s lawsuit seeks injunctive relief and monetary damages from a “coordinated and multi-faceted campaign orchestrated” by Patton.

FedEx Ground Truck

Side view of Fedex Ground truck in San Ramon, California. (Smith Collection/Gado/Getty Images/Getty Images)

FEDEX EXCLUDES SUNDAY DELIVERY TO SOME MARKETS

Without discussing the matter, Patton went public with the termination of his relationship with FedEx and said the company’s move to cancel our contracts is a clear case of silencing everyone with a voice.

FedEx said affected routes accounted for less than 0.5% of Ground’s 60,000 routes and contingency plans were in place.

In its lawsuit, FedEx alleged that Patton is discrediting its Ground business through a series of false and misleading statements about its commercial activities.

Spencer Patton at conference

Spencer Patton, one of FedEx Ground’s largest delivery contractors, speaks at a conference he hosted in Las Vegas, Nevada, US, August 20, 2022. (Spencer Patton/Route Consultant/Handout via REUTERS / Reuters Photos)

In the lawsuit, FedEx claimed that adverse coverage from Patton’s campaign could damage Ground’s reputation with the shippers who pay it to deliver packages and tarnish goodwill within the contractor network.

FedEx claimed that Patton’s actions are a promotional campaign for his company that offers consultancy, brokerage and other services to delivery drivers.

ticker Safety Last Change Change %
FDX FEDEX CORP. 218.16 -9.87 -4.33%

And, the company said, Patton has encouraged actions that could disrupt its critical Christmas delivery business.

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At a conference hosted by his company last weekend, Patton said that if the terms of his contract were not amended, he would close his contracting company FedEx Ground on Nov. 25, the start of the holiday season.

Kristen Altus and Reuters of FOX Business contributed to this report.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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