Wilmington Mayor David Raizk said the move is disappointing but not entirely unexpected. He hopes DHL will continue to make and process international shipments at Wilmington even if a deal with UPS is reached, resulting in some jobs being saved.
DHL parent Deutsche Post AG said Monday that heavy losses and fierce competition will force it to cut 9,500 jobs at DHL in the United States and eliminate U.S.-only domestic express shipping by land and air.
DHL wants to hire UPS to replace ABX Air and ASTAR Air Cargo in transporting packages by the end of the year. That would move work away from DHL's hub in Wilmington.
The announcement came in an early-morning press conference held at DHL's world headquarters in Bonn, Germany.
Deutsche Post CEO, Frank Appel said, "I deeply regret that we have to take this step, but there is no alternative and that is why we have to be very consistent. We have come to the conclusion that this is the right thing to do for the company."
Appel went on to say that U.S. operations are bleeding money, but the company is making a profit elsewhere in the world and that is why it is eliminating U.S. service.
What do the cuts mean for the air cargo hub in Wilmington? Appel said, “With regard to Wilmington, it depends on the final agreement with UPS and whether there will be an agreement with UPS. So, we are currently engaged in negotiations and once that situation is clear, we will be able say with Wilmington.”
Sen. Sherrod Brown's Statement On Closing Of DHL In Wilmington In response to today's announcement by DHL, U.S. Senator Sherrod Brown (D-OH) today issued the following statement:
“I am deeply distressed by today’s announcement by DHL. The Ohio Congressional delegation, the governor, ABX, ASTAR, and Wilmington-area workers offered to work out a plan to help keep the company viable and save Ohio jobs. It saddens me that DHL refused to consider any proposal.
“The first thing we must do is secure all available emergency assistance for the workers and their families. I call on Labor Secretary Elaine Chao to award emergency funds to the area, immediately.
“DHL, for its part, needs to file WARN notices for every worker immediately, so that all available federal emergency funds make their way to Wilmington-area families. I wrote to DHL Express Chief Executive Officer John Mullen last Friday to urge this and today’s announcement makes it all the more urgent. I also call on DHL to make clear its plans for severance and assistance to the thousands of workers who face unemployment.
“While DHL today announced it will no longer operate in the domestic shipping market, it does appear that DHL will still need to keep a U.S. presence for its international operation. On behalf of the tens of thousands of ABX, ASTAR, and DHL families feeling betrayed today, I urge DHL to keep this presence in Wilmington.
“Ohio put out the welcome mat for DHL five years ago. Today, Ohio families feel a door slammed in their faces. DHL has an opportunity to mitigate some of the damage it has brought upon the community by being a good corporate citizen and working with the state in the use of the air park and in ensuring acceptable severance packages.”
Sen. George Voinovich's Statement On Closing Of DHL In Wilmington Today, U.S. Senator George V. Voinovich (R-OH) released the following statement in reaction to the closing of DHL's domestic-only operations, resulting in the loss of roughly 9,500 jobs, with the majority coming from the closure of the main hub in Wilmington, Ohio:
“Thousands of hard-working individuals and families affected by this decision, by no cause of their own, find themselves in a crisis of uncertainty about their future today. While the Ohio delegation – working with Gov. Ted Strickland and Lt. Gov. Lee Fisher – has been fighting to save these jobs, it was always kept in mind the possibility that these jobs could still be lost, and contingency plans were also discussed."
Voinovic said, "Working with Sen. Brown and other members of the delegation, my staff has been facilitating communication between the state and federal government, and that will continue. We will also continue to be tireless in our efforts to ensure that state and local governments have the full federal resources needed to cope with this economic disaster."
"I’m sure all of us will urge the next administration to make extraordinary efforts to deal with what may be one of the worst economic dislocations that we’ve faced as a nation. We must pull together to help our fellow citizens, especially our families, in times of hardship," Voinovich said.
Rep. Turner Calls on DHL to Work With Community During Economic Transition Congressman Mike Turner (OH-03) calls on DHL to work with the Wilmington community after their decision to abandon the North American hub at the Wilmington Airpark. DHL decided to cut 9,500 jobs after accepting hundreds of millions in incentives from the State of Ohio and Clinton County to come to Wilmington in 2004. The company announced this morning that they plan to eliminate their domestic shipping operations in the United States.
“While our community is looking to the future, DHL must be held accountable for its responsibility to their workforce and to our community,” Congressman Turner said. “We have a great asset in the Airpark and a dedicated and experienced workforce here in Wilmington. We must immediately begin to build on this asset for our future economic success.”
“While DHL’s decision to cease their domestic operations in the United States is unfortunate, our community has worked to prepare itself for this possibility for months. Our region’s leaders and elected officials must continue to work together on this vital issue. It is imperative that the workers and families at this facility receive full severance packages and have access to retraining benefits. We must also work with DHL on the reuse of the Wilmington Airpark. I am committed to making sure every federal resource is available to assist the community in its transition.”
Rep. Turner has successfully advocated for federal funding to establish an economic plan for the entire region that looks for new uses for the Wilmington Airpark.
Strickland, Fisher Released Statements On DHL'c Job Cuts Ohio Governor Ted Strickland and Lieutenant Governor Lee Fisher, also director of the Ohio Department of Development, today released the following statement on the decision by DHL to discontinue domestic delivery services in the United States.
“We are extremely disappointed to learn about DHL’s decision to discontinue its domestic delivery service in the United States. This is heart-breaking news for the city of Wilmington and Southwest Ohio.
“While our DHL Economic Task Force, organized by Lt. Governor Lee Fisher and Wilmington Mayor David Raizk, had worked for a different outcome, we will now focus on doing everything we can to help the affected workers, their families and their communities. Workforce investment boards across the region have come together to offer job placement and retraining resources to those who need it, and the Wilmington Business Resource Center is open to anyone looking for business assistance and guidance.
“We stand ready to support the people of Southwest Ohio in whatever way we can, and we will continue our charge to work every day to grow jobs in Ohio.”
For help: Wilmington Business Resource Center is a one-stop location for business assistance and will host training events and provide job counseling. The Ohio Benefit Bank, located within the Center, helps connect low- and moderate-income families with services that can help them gain financial stability and security. The Resource Center and Benefit Bank are both located in Wilmington United Methodist Church, 61 E. Main St., Wilmington, Ohio 45177. Phone: (937) 469.2058. To get regular updates on this news please visit the Wilmington Air Park’s Web site at www.airparkhelp.com
Previous Stories: November 10, 2008: UPDATE: DHL Cuts Not Likely To Impact Local Air Hub November 10, 2008: Deutsche Post To Cut 9,500 Jobs In US November 8, 2008: Deutsche Post to Discuss DHL Restructuring November 7, 2008: Ohio Senator Tells DHL To Warn Workers