Get latest headlines via RSS feeds
NewsVine
Del.icio.us
Digg
Facebook
Furl
Reddit
StumbleuponDHL says it's preparing severance benefits plan for Wilmington workers
Related:
> Ohio lawmakers to focus on potential DHL job losses
> Do you think the hearings will make any difference?
Monday, August 18, 2008
The leader of the German ownership of DHL, architect of a cost-cutting plan that would wipe out thousands of jobs in Wilmington by hiring United Parcel Service to handle DHL's U.S. cargo airlift, says the company is preparing a plan of severance and other benefits to ease the economic blow to Wilmington.
"DHL has already committed to fund a triple-digit million-dollar amount on planned severance, retention and health benefits for the work force in Wilmington _ that includes ABX, ASTAR and DHL employees — and other U.S. locations," Frank Appel, chief executive officer of Deutsche Post World Net, said in a letter Monday, Aug. 18, to Republican presidential candidate John McCain, who made a campaign stop in Wilmington on Aug. 7.
A broad array of Republicans and Democrats have been urging DHL to reconsider its ongoing effort to hire UPS, which DHL says is essential to reducing its annual U.S. losses of $1.3 billion. Political leaders from both parties are calling for a federal antitrust investigation of whether a DHL-UPS deal would limit market competition; DHL says it would not. The U.S. House plans hearings next month in Washington to examine the issues.
Appel, based in Bonn, Germany, wrote that he is personally involved in the preparation of the benefits plan, along with a team of other senior executives.
"Once that plan is established, I plan at the appropriate time to travel to the U.S. to discuss how we can implement it in close cooperation and in open dialogue with local authorities and other stakeholders," Appel wrote. "I will be happy to keep you informed on progress."
Appel responded to McCain's Aug. 12 letter asking that Appel come to Wilmington to explain to people there his decision to hire UPS. That would wipe out an estimated 8,200 or more jobs at DHL's Wilmington air freight hub, which ABX Air operates and from where ABX and ASTAR Air Cargo nightly fly DHL packages across the United States.
The Ohio Department of Development is aware of DHL's plan, but still awaits details from the company, said Kelly Schlissberg, a spokeswoman for the state.
Mark Dimondstein, an organizer with the American Postal Workers Union who helped start the Save the Jobs Committee, a community group lobbying to keep the jobs in Wilmington, said he was aware that DHL was preparing a severance-retention benefits plan. But it won't help the employees or the region's economy, he said.
"Our point is, the people need the jobs, not the severance pay. The benefit of a severance plan is to the company, so people won't leave right away. They want to keep the people there until the doors close," Dimondstein said. "But at some point, the health care and all that runs out. What the heck are the people going to do?"
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
Comments
By standing alone
August 27, 2008 11:20 AM | Link to this
and speaking about the republicans ,former president bill clinton left the country with a good surplus of money ,and in 8 yrs the republicans destoyed it and put the country in disarray,so what happen there,i remember when this was a strong proud country ,now its sold to the highest bidder,its either asian or european countries that own our economy,whos to blame there the unions again,!!!!!!!!!!!!!yeah right get a real job
By standing alone
August 27, 2008 11:13 AM | Link to this
they should have change the top people who make the decisions,they steered the company in the wrong direction ,but lined the pockets with high salaries and incentives,also just rotated they friends into positions ,not qualified people ,they were over looked ,I would’nt wait till i lose double the amount to make changes ,but i guess that the fault of the union too!!!!!!!!!!!!!!!!!!!!
By standing alone
August 27, 2008 11:03 AM | Link to this
Its easy to talk in favor of the companies when your job is not at risk ,but if it was and your families future is at stake ,everyone would be changing there tune,i work in the industry and am worried about my future.Its easy to blame the unions, but management is to blame as well,DHL stated that it lost 400 hundred million dollars in the first two years of buying Air borne express,but did nothing to change that,and waited to lose 400 hundred million more to make changes now.
By standing alone
August 27, 2008 10:52 AM | Link to this
If you don’t work in the delivery business you don’t know wat we go throught and face everyday ,the pressure out on us to give good service,this country has been sending of american jobs over seas,and where do they go?,to third world nations where they pay sub wages,DHL has just closed its customer service department in the U.S.and sent it to Costa rica ,yeah costarica,now how much you think they’ll pay those workers over there.yeah put us out of work and in slave them over seas!!!!!!!!!!!!!!!!
By RickG
August 27, 2008 5:46 AM | Link to this
Not the union’s fault ? DHL has lost money every year since buying Airborne Express . So employees ratify a contract calling for over $8 an hour in wage increases over 5 years . Then by coincidence thousands of jobs are eliminated . DHL is a world wide , German owned company . Watch for them to sell U.S. operations . DHL service is very poor . Amazon.com forum members listed thousands of complaints of late , damaged , and missing shipments
By James
August 23, 2008 2:48 PM | Link to this
FedUp, what would you like to see become of American workers? Slaves, just as the workers are in many other countries to which American corporations are outsourcing?
It’s the CORPORATE MANAGEMENT that has caused MOST of the problems with America’s ability to compete with “foreign workers”. Unions have NOTHING to do with it.
By Union Member
August 22, 2008 3:44 PM | Link to this
To Fed Up: You have really insulted me. I am a union member, Republican and educated. I have never asked for socialism and don’t want to live in France. I spent many years in the military “visiting” many other countries around the world and have always thought I would live only here. If you think I am only a fat,lazy individual looking for a handout please come join me in the two jobs I have and the volunteer work I do.
By abx worker
August 21, 2008 8:35 PM | Link to this
This is not any union’s fault. The DHL folks did not understand the concept of “overnight delivery”. They came in here and wanted to do it only their way. ABX Air did not help DHL understand the American I want it now mentality. Also, ABX did not work at taking care of their number 1 customer, DHL. Several reimbursedable charges as stated in the contract were inflated. These issues did not persaude DHL to remain. Management on both sides is to blame, NOT THE HOURLY EMPLOYEES. I am not union.
By Violain
August 19, 2008 3:13 PM | Link to this
What is DHL supossed to do, keep loseing and go bank rup? then what? same thing.
By The Big Paw
August 19, 2008 2:06 PM | Link to this
The ‘Hearings’ are mere political posturing by incumbents and hopefuls who are seeking votes. Business is business and DHL/UPS have done nothing illegal. As one poster noted, no diversification of business in a town is inherently dangerous to the town’s economy. Wilmington was not successful in attracting additional businesses to their free-trade-zone airpark. Now the consequences are being blamed on everyone except those without the foresight to have addressed this years ago. Too bad folks! Welcome to globalization.
By Jennifer
August 19, 2008 1:50 PM | Link to this
All of you are not thinking that thousands of jobs will be lost. Families struggling once again and stressing day to day if we will have a job the next day. Anything that happens is a step closer to finding out if ABX and ASTAR employees have a job to back to. For some of us this is not our first rodeo. Now all of us are paying for the bad decisions that were made. McCain help merge this companies together. Now he NEEDS TO FIX THE PROBLEM!We will fight to the end to keep these jobs in Wilmington
By Jennifer
August 19, 2008 1:50 PM | Link to this
All of you are not thinking that thousands of jobs will be lost. Families struggling once again and stressing day to day if we will have a job the next day. Anything that happens is a step closer to finding out if ABX and ASTAR employees have a job to back to. For some of us this is not our first rodeo. Now all of us are paying for the bad decisions that were made. McCain help merge this companies together. Now he NEEDS TO FIX THE PROBLEM!We will fight to the end to keep these jobs in Wilmington
By ben
August 19, 2008 1:25 PM | Link to this
Oops, try this one: http://tinyurl.com/5wfa9f
By Ben
August 19, 2008 1:22 PM | Link to this
Here’s a related article I found interesting: http://outsourced-logistics.com/logisticsservices/dhlupsdealscrutiny_0812/
By Karen
August 19, 2008 1:00 PM | Link to this
This is another example of a town hitching their economy to one employer. It shows the shortsightedness of that strategy. The unions have only themselves and their leaders to blame. As Big Paw points out they need to look at other options for this facility if indeed it does close. The unions in this country will get bolder and cause more fiscal damage if the Socialist party, oops, the Democratic party wins the presidency in November.
By The Big Paw
August 19, 2008 11:32 AM | Link to this
Some interesting facts concerning the UPS sort center and carrying capacity: 1) UPS is furiously trying to expand their already overburdened sort center. The expansion plan was based on projected increases in business beyond and not including the DHL contract. Bottom line is that UPS does not have the capacity to sort the additional cargo at their site in Louisville. 2) The UPS freight fleet of aircraft is already at maximum capacity. The pilots I know who fly for UPS are flying the maximum allowable hours per month based on their contract FAA regs. Delivery of new cargo-configured aircraft to cover the DHL contract is not feasible. Cargo-configured aircraft are not easy to find.
I’m betting that UPS will sub-contract to whoever is left in control of the large, modern and efficient hub at Wilmington to take care of the overflow of business. Same is true of the more fuel efficient part of the current DHL/ABX aircraft fleet.
So it would seem that some work will remain at Wilmington for the foreseeable future. Should be long enough to transition that facility and airpark into a different market. If anyone in Wilmington is doing any strategic thinking that is. Seems like this should be the focus of efforts rather than attempting to stop a business decision by DHL which is a done deal.
I hear those union folks a whinin’….. They’re a whinin’ up a storm……. Seems like they should be putting some effort into adaption rather than complaining about how abused they are….. Sheese!
By Fed Up
August 19, 2008 10:48 AM | Link to this
I’m sick and tired of you over paid union workers blaming everything on the Republicans. It’s the unions fault we can’t compete with foreign workers. Your a bunch of fat lazy americans looking for a free hand out. Its not the Federal goverments job to provide you with welfare, healthcare, etc…. You want to be a socialist. Go live in France if you think its so great. Try making sure you kids go to school and get the education you didn’t bother getting. Democrats make me sick!
By john
August 19, 2008 9:47 AM | Link to this
John Mccain has been in the Senate for 29 years and he does not have a very good record of saving union jobs. HE NEVER CARED ABOUT UNION WORKERS, so dont count on his BS. DHL is A GERMAN COMPANY, many American companies have cut and run, and taken jobs away, many to some third world country or China. This is a sad situation that pleople like McCain and others who supported big business over the past 20 years, have let the American worker lose their jobs. Now MCain wants to be President..SAY NO
By bud
August 19, 2008 9:01 AM | Link to this
let them pull out of the u.s. if they want to, see how much they lost in the long run. do you think that won’t make them think. they get all kind of tax brakes then they run to the next area for more tax brakes
By Works In Shipping
August 19, 2008 8:39 AM | Link to this
With DHL bleeding almost a billion dollars a year over the US market, the only other option for them, if the government intervenes, is to pull out of the States entirely, thus creating a real duopoly instead of only a perceived one, and further eliminating even more jobs. No one wants to look down the road, though, and politicians are going to capitalize on that and make a lot of noise pretending they’re doing something, since it’s an election year.