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tonight the labor shortage nationwide is hitting your holiday shopping hard on the road and in the air its a tale of two delivery companies between ups and fedex according to ship matrix fedexs on-time delivery rate has fallen to 85 percent for both express and ground packages fedex says thanks to the labor shortage it was hit with 450 million dollars in extra costs last quarter the company specifically pointing to higher wages and increased transportation expenses that higher price tag for fedex is caused in large part from hiring independent contractors who drive and deliver individual packages to your doorstep employing non-union drivers for that last mile of delivery what happens is they are outsourcing essentially delivery to about a little over 5 000 different small companies that in turn go higher workers higher and have to obtain equipment the fedex president explaining the current labor environment is driving inefficiencies in the operations of our networks and docHubl
