FedEx warns of a global recession, cutting sales forecast by half a billion dollars

Shares of FedEx (The company uses independent contractors, not employees, to make deliveries, and many of those contractors are complaining that rising costs for fuel, labor and new vehicles has made their business unprofitable. Some are threatening to halt operations on Black Friday, just at the start of the holiday shopping season, unless FedEx agrees to change their compensation.FedEx insists it will work with contractors who are having problems. It has sued the former contractor who has been the most vocal critic of the company. “We recognize that current economic conditions are posing new challenges,” FedEx Ground said in a statement last month. “We remain committed to working with service provider businesses individually to address the challenges specific to their situation. Our goal is to enable success for both FedEx Ground and service providers.” About 1,000 of the 6,000 contractors who work for FedEx have joined a trade association to lobby the company for better compensation. A survey conducted by the association released this week found 54% saying their business with FedEx was losing money, 35% saying it was breaking even, and only 11% saying it was profitable. The association said the survey reached 1,200 contractors working for the company or who left the company within the last 12 months.