Tensions between FedEx and the ground contractors that transport its packages are intensifying, potentially threatening service levels for the busy holiday shipping season.

Delivery delays and related disruptions could have a significant impact on the promotional products market and other industries that rely on FedEx, though it’s too soon to say if any will come to pass.

This week, the Trade Association for Logistics Professionals (TALP) sent the approximately 6,000 FedEx Ground driver contractors that compose its membership a survey of six questions, one of which essentially asks for a no-confidence vote for FedEx Ground CEO John Smith.

Responses are due Friday evening. The other questions ask about whether contractors are worried they’ll face retaliation from FedEx Ground for sharing negative opinions about how the business is run. Others ask about contractor profitability and satisfaction levels with FedEx.

The survey comes amid what TALP describes as widespread discontent and financial peril among FedEx Ground contractors.

TALP claims that more than one-third of the FedEx Ground contractor network has either ditched its contracts or will be compelled to do so as a result of financial pressures – strain it believes FedEx can fix with what it describes as better, fairer compensation. TALP asserts that FedEx Ground will be “unable to deliver packages in a timely manner” during the peak holiday season if the exodus of contractors occurs.

In a statement, FedEx said that it’s taking strategic steps that will “ensure a successful peak season.” The company did not release specific details, but noted that it was committed to creating opportunities for contractors to thrive.

“Through this, we have and will continue to engage service providers, recognizing each of these businesses is unique and managing through these conditions differently,” FedEx said.

FedEx, a multinational transportation/logistics conglomerate, doesn’t directly deliver to homes and businesses. Rather, the Memphis, TN-headquartered company pays independent contractors to do the delivery work using their own drivers and trucks.

Spencer Patton, a former FedEx Ground contractor, led the formation of TALP, in part to protect and advocate on behalf of the financial interests of Ground contractors. Patton argues that many contractors are in dire straits due to rapidly rising costs and that FedEx must boost compensation to keep the contractors viable.

In late August, FedEx terminated its business relationship with Patton and then sued the former hedge fund owner in federal court in Tennessee, alleging that the Brentwood, TN-based businessman has misrepresented the financial hardships of Ground contractors.

While described as one of FedEx’s biggest contractors, the company said that Patton’s business accounted for less than 0.5% of its approximately 60,000 Ground routes. Contingency plans are in place and will be executed, FedEx said, adding that service disruptions are not expected in the 10 states where Patton operated.

As FedEx deals with issues among contractors, rival UPS is facing labor unrest.

A union leader has said that the delivery giant’s 360,000 or so unionized drivers and warehouse workers could strike come August 2023, should a new strong contract for the workers not be established by then. The potential strike is nearly a year off and shouldn’t threaten deliveries in the 2022 holiday season, though some analysts think the likelihood of a work stoppage is high. Should a strike occur, that would greatly affect delivery/service levels in the promo products market. UPS plans to hire 100,000 seasonal workers for the 2022 peak season.