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FedEx Contractor Revolt Intensifies With Calls for Pay Increase

  • Big contractor plans to coordinate with other delivery firms
  • Rift adds hurdle to new CEO’s promise to boost profit margins
FedEx Ground trucks parked outside of a distribution center.

FedEx Ground trucks parked outside of a distribution center.

Photographer: Victor J. Blue/Bloomberg
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FedEx Corp. is facing more pressure to raise pay for the small businesses that deliver a big portion of its packages, adding another hurdle to the logistic giant’s plans to boost profitability.

Spencer Patton, who runs more than 200 routes in 10 states for FedEx Ground, launched the latest challenge on Wednesday by distributing a letter to fellow logistics firms and posting a video online that asks for payments to increase by 50 cents per stop and 20 cents per mile when shuttling packages between hubs.