Division I regional track finals
Fenwick graduation 2012
Ponitz graduation 2012
Home > Blogs > Ohio politics > Archives > 2008 > September > 09 > Entry
Obama on DHL hearing
Here’s Sen. Barack Obama’s take on the House Judiciary Committee’s hearing on the proposal to allow UPS to carry DHL’s domestic air freight:
“I commend the House Judiciary Committee for holding a hearing today on the implications of the proposed deal between DHL and UPS, which would allow UPS to assume DHL’s air transport services. I have called for a hearing on the same subject in the Senate.
“Several years ago, DHL purchased Airborne’s trucks and hired much of its personnel. However, DHL was unable to buy the entire company, which included air transport services, because of federal rules preventing foreign firms from owning domestic airlines. ABX was then established in Wilmington, Ohio, to take control of Airborne’s air transport operations, which DHL uses as its primary contractor for that service. Today, DHL wants to terminate that contract and instead contract with UPS, a primary competitor, for those services.
“This proposed deal creates two problems. First, as a matter of consumer policy, it threatens competition to allow two direct competitors to act as partners. Second, it would eliminate 8,000 jobs in Wilmington as well as other jobs that depend on DHL workers, and it would abandon the infrastructure they currently use. Because UPS will use its existing infrastructure and employees to handle DHL’s delivery needs, this deal is unlikely to create new jobs.
“While these companies are not proposing a merger, DHL and UPS intend to partner to have UPS provide a key component of the delivery service DHL sells. I have asked the Department of Justice to examine the proposed deal because I believe that it would be bad for consumers and competition, and may possibly violate antitrust laws. This deal would result in DHL becoming almost entirely dependent on its main competitor - UPS - to deliver packages for DHL, and therefore may very well cause serious harm to competition in the express package delivery market. The Justice Department should oppose any deal that would substantially reduce competition and consumer choice in this vital market.
“If the antitrust scrutiny concludes that the deal is legal and it moves forward, the federal government has a real responsibility to step in and help all of those that will be unemployed. Unfortunately, this situation would not qualify these workers for trade adjustment assistance since the jobs are not being shifted overseas; nor are they the result of a free trade agreement. Instead these jobs are being lost in the context of a global market and competition among multinational firms.
“If we know in advance that a deal like this will disrupt a community, then the government should have a strong rapid response strategy that combines federal and state resources and lets people know we will not abandon them. We have reached out to the Administration on this issue, and to its credit, the Administration has a team working on it.
“After everything the people of Ohio did to attract DHL’s business, DHL owes it to them to try to negotiate, in good faith, an alternative structure or a new contract to save these 8,000 jobs. Congress was responsive and open to DHL when high-priced Washington lobbyists represented its interests in purchasing Airborne years ago. Now, Congress owes it to the hardworking people of Ohio and American consumers the same level of access, deference, and responsiveness that DHL received.”
Permalink | Comments (3) | Post your comment |
Comments
By Alice
September 9, 2008 11:54 PM | Link to this
What are we supposed to believe - that the liberals in Washington or perhaps the liberal media drove up gas prices, got us into a mess in Iraq, threw out our constitutional rights, lost our jobs, and reduced our standing in the world to a schoolyard bully. In the three branches of our government: the legislative has been controlled by Republicans from 1995 to 2007; of our nine Supreme Court justices in our judicial branch, seven of them were appointed by Republican presidents; and the executive branch has been controlled by President Bush for the last eight years. We bought crap the first time, shame on them. We bought crap the second time, shame on us. We buy crap a third time and WE HAVE TO BE COMPLETELY STUPID.By Alice
September 9, 2008 11:45 PM | Link to this
Drill Baby Drill is a cheer for the oil companies. As usual, both sides of supporters take it to extreme and the middle gets lost in campaign pandering. Both sides have committed (they said so) to both offshore drilling and energy exploration. The difference between them is the emphasis on the options, or reality vs political posturing. The dems promote alternative energy and limited drilling. The Republicans promote drilling (I don’t hear any chants of wind, baby, wind) and some alternative energy, or at least that’s what this issue has come down to between the national committees. The Republicans want everyone to believe that offshore drilling is the answer (oh, and maybe a little bit of research here and there for alternative energy but only after we have time). The truth is, I think the candidates come a lot closer on this issue than most would have us believe. The difference comes down to who do you trust? Before 2000, while campaigning, Governor George W. Bush said, “Over the past seven and a half years, our international credibility has been diminished, and Saddam Hussein’s Iraq is now a major oil supplier to the U.S. I understand that ensuring U.S. energy security requires presidential leadership and a comprehensive national energy policy. My policy, which includes more than 20 initiatives, helps low-income households with their energy bills, improves air quality, encourages the development of renewable and alternative fuels, and, recognizing that alternative sources supply less than 4 percent of U.S. energy needs, promotes access to foreign oil and the development of U.S. oil, coal and natural gas resources.” Should we really believe that the Republican Party is the party that can clean up the damage done by the Republican party? Should we believe them now???By SufferNoFoolGladly
September 9, 2008 8:00 PM | Link to this
It would be wise for the Democratic Congress to quit playing politics to gain some leverage they perceive for Nobama by Drilling Baby Drill which helps all Americans and our security and not their candidate pander to Wilmington and DHL. Governor Strickland could do nothing to help the AK Steel workers. Maybe the employees would have a better chance of protecting their jobs if gas had not risen so high on the Democratic controlled Congress, approval ratings of single digit. What a political stunt. Just buying time for the stunt. Maybe anger UPS enough they think of pulling all hubs out of Ohio. And this is change? No, this is cronie politics as usual. How many other businesses are the Democrats going to hold hostage?