Ohio says it is trying to save jobs at DHL, GM Moraine
Friday, June 13, 2008
DAYTON — Ohio would consider pursuing an antitrust lawsuit on its own to try and stop the delivery company DHL from hiring its U.S. cargo flying out to United Parcel Service, even if the federal government concludes that a DHL-UPS deal wouldn't violate antitrust laws, Lt. Gov. Lee Fisher said Friday, June 13.
Fisher said that would be part of the multi-pronged effort Ohio is making to try to persuade DHL not to hire UPS, which could wipe out at least 6,000 jobs at DHL's Wilmington air freight hub, a major regional employer.
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"We have to first focus on the stop-and-prevention phase," he said.
Fisher said he hopes to talk by telephone on Monday morning with the chief executive of Deutsche Post World Net, the Germany-based owner of DHL. Frank Appel is chief executive officer of Deutsche Post, a logistics company which also operates the German mail system.
Hiring UPS would eliminate the need for DHL's current employment of the ABX Air and ASTAR Air Cargo airlines to fly its cargo from Wilmington to U.S. destinations. UPS has its own airplanes, sorting facilities and a major freight hub in Louisville, Ky.
Ohio officials are working with federal authorities to explore whether DHL's proposed deal with UPS, a business rival, would violate U.S. antitrust law by reducing competition in the nation's express delivery market, which UPS and FedEx dominate. The Justice Department and Federal Trade Commission are the lead federal agencies in antitrust matters.
DHL is committed to concluding a deal with UPS within three months and believes it will help cut costs in the U.S. market, DHL spokesman Jonathan Baker said Friday. DHL wants to eliminate its U.S. losses that hit $900 million in 2007 and are projected to reach $1 billion this year.
DHL believes that no government approval is needed for its deal with UPS because it would be simply an agreement with a vendor, Baker said.
DHL is willing to talk with state and local officials, along with ABX Air and ASTAR, about new uses for the Wilmington airport, Baker said. DHL is considering keeping its ground sort and international package sort operations there, he said.
Fisher, in an appearance before the Dayton Daily News' editorial board, said the state is trying every option that officials can think of to save jobs, or reduce projected job losses, at DHL's Wilmington hub, General Motors Corp.'s 2,500-employee Moraine sport utility vehicle assembly plant that is to close in 2010, and Continental Airlines' hub at Cleveland Hopkins International Airport, the only major airport flight hub within Ohio.
Continental said Thursday that it will cut 3,000 jobs across its system on Sept. 3 because of record-high fuel prices. The extent of its job cuts at Cleveland won't be known until August. Continental also plans to reduce the number of its flights from Cleveland, although its flight service in Dayton won't be affected.
Fisher said the state still hopes to persuade DHL to reconsider its deal with UPS and will also ask GM to reconsider closing its Moraine plant, although he conceded it is unlikely that either company will reconsider.
The state will also work with local officials and the companies on possible re-uses of the Wilmington hub, one of the world's largest privately owned airports, and GM's Moraine plant, Fisher said.
A task force headed by Wilmington Mayor David Raizk has already met to discuss responses to DHL and is to meet again on June 24 at Wilmington College, Fisher said. Moraine city officials have said they will be talking again with GM.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.