FedEx Delivery Contractors’ Threat of Black Friday Walkout Fizzles

A FedEx package
A FedEx package on a stoop during Cyber Monday in the Greenwich Village neighborhood of New York. (Angus Mordant/Bloomberg News)

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FedEx Corp. defused a threat by its delivery contractors to walk off the job on Black Friday in protest of dwindling profits as a trade group representing disgruntled logistics company owners disbanded.

The Trade Association for Logistics Professionals said all nine of its committee members resigned effective Nov. 18 and the organization has been terminated. Spencer Patton, who spearheaded the revolt, had resigned in October after FedEx’s ground unit canceled his delivery routes.

The trade group said it’s “encouraged” by meetings that FedEx Ground executives have held with the small companies that deliver FedEx packages and urged contractors to engage in discussions with the company. The association had grabbed attention in September when it released a survey of 1,200 contractors that found 89% of contractors’ businesses were not profitable. There are about 6,000 FedEx Ground contractors.

“We also unequivocally denounce any calls for work stoppages that may have been associated with this organization or any individual member associated with this organization,” the group said in a statement. “Any such action is unproductive, self-destructive to our collective businesses and contrary to our agreed-upon contracts.”

FedEx shares rose 1.5% at 9:32 a.m. in New York.

FedEx Corp. ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and the Transport Topics Top 50 list of the largest global freight companies.

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