DHL failed. Return of Airborne ILN only option?

[Big Beer Belly]

Well I hope that does not happen in this case. Not for just the obvious reasons you hear me voice, but with a situation like this (in comparison to your example) and if allowed to go through just may tie your hands as a labor group. If you find yourself at heads with management and that "oversight" does not allow you to exercise your rights as labor you may be...well...for a lack of a better word, trapped. The concerns in this deal for consumers would be the same that removes your best weapon as a labor group. This could get MUCH more deeper on the Hill than what I was just thinking.

Any word on your end as to the signing of the contract? The DOJ will not even start an investigation (if they do) until something is on paper.

The "labor friendly" Clinton administration (DEMOCRAT) told the IPA we would never be released into self-help a few contracts ago... for what it's worth. Actually getting to the point of self-help is a VERY long and arduous journey and has been for years. It's a terribly political animal. So, my opinion is that it potentially changes very little for labor. The RLA has always been heavily stacked in the company's favor.

As for the latest... just what I read... copied below from yesterday:

>> DHL’s Chief has told presidential candidate John McCain that the planned deal between DHL and UPS is “irreversible.”
CEO Frank Appel wrote in a letter to McCain that DHL “has already committed” or set aside about $300 million toward planned severance, retention and health benefits for the workforce in Wilmington and other U.S. locations. Appel said that includes Wilmington-based employees of ABX Air, ASTAR Air Cargo as well as DHL.
Appel tells McCain the DHL-UPS proposal on the table is by its nature “a pure commercial outsourcing contract for services between two separate companies, limited to DHL’s airlift in America, and would not diminish the competitive situation between DHL and UPS in the U.S. in any way.”
There is no alternative to “this drastic measure” due to current annual U.S. losses of $1.3 billion, writes Appel. “This leaves me no other choice than to proceed as planned, also considering my overall responsibility as chief executive officer of a global company and to safeguard as many jobs as possible in the U.S.,” he says.
DHL Americas Director of Corporate Communications Jonathan Baker said Monday the timeline for finalizing a contract with UPS is within “the coming weeks.”
The negotiations, said Baker, are progressing, and the two companies now are talking about details.
A signed contract will not necessarily be reached by the end of August, said Baker. In the May 28 announcement of the planned deal between DHL and UPS, the timeframe for reaching a contractual agreement was said to be within three months.
http://tinyurl.com/65vn4h<<

BBB

 

[shooter]

The "labor friendly" Clinton administration (DEMOCRAT) told the IPA we would never be released into self-help a few contracts ago... for what it's worth. Actually getting to the point of self-help is a VERY long and arduous journey and has been for years. It's a terribly political animal. So, my opinion is that it potentially changes very little for labor. The RLA has always been heavily stacked in the company's favor.

As for the latest... just what I read... copied below from yesterday:

>> DHL’s Chief has told presidential candidate John McCain that the planned deal between DHL and UPS is “irreversible.”
CEO Frank Appel wrote in a letter to McCain that DHL “has already committed” or set aside about $300 million toward planned severance, retention and health benefits for the workforce in Wilmington and other U.S. locations. Appel said that includes Wilmington-based employees of ABX Air, ASTAR Air Cargo as well as DHL.
Appel tells McCain the DHL-UPS proposal on the table is by its nature “a pure commercial outsourcing contract for services between two separate companies, limited to DHL’s airlift in America, and would not diminish the competitive situation between DHL and UPS in the U.S. in any way.”
There is no alternative to “this drastic measure” due to current annual U.S. losses of $1.3 billion, writes Appel. “This leaves me no other choice than to proceed as planned, also considering my overall responsibility as chief executive officer of a global company and to safeguard as many jobs as possible in the U.S.,” he says.
DHL Americas Director of Corporate Communications Jonathan Baker said Monday the timeline for finalizing a contract with UPS is within “the coming weeks.”
The negotiations, said Baker, are progressing, and the two companies now are talking about details.
A signed contract will not necessarily be reached by the end of August, said Baker. In the May 28 announcement of the planned deal between DHL and UPS, the timeframe for reaching a contractual agreement was said to be within three months.
http://tinyurl.com/65vn4h<<

BBB

Well, if I get by Monday the 25th I figure I am good until the end of DEC. UPS is not dumb like DHL has proven themselves to be and will not mess their 4th quarter. So once its over my gut tells me UPS will be getting it all in the first part of the year. Lets see how fast things move (or if they stop) after the signed contract.

 

[MACHTRANSDUCER]

Well, if I get by Monday the 25th I figure I am good until the end of DEC. UPS is not dumb like DHL has proven themselves to be and will not mess their 4th quarter. So once its over my gut tells me UPS will be getting it all in the first part of the year. Lets see how fast things move (or if they stop) after the signed contract.

Wait! I thought they would have this INKED within 90 days? You mean to tell me DHL is "not on time"? Thats odd? Another note, so is DHL kicking in an additional $30k per worker based on 10k workers and 300 million? or was that already included in our "weeks of service severance letter"?

 

[Big Beer Belly]

So once its over my gut tells me UPS will be getting it all in the first part of the year. Lets see how fast things move (or if they stop) after the signed contract.

From what I've been reading the volume will take the better part of '09 to be transferred. Expect DHL to dangle monetary carrots to those workers willing to stay to the last day.

Again Shooter... sorry for your situation. In life, sometimes we're the pigeon and (unfortunately) sometimes we're the statue.


BBB

 

[shooter]

From what I've been reading the volume will take the better part of '09 to be transferred. Expect DHL to dangle monetary carrots to those workers willing to stay to the last day.

Again Shooter... sorry for your situation. In life, sometimes we're the pigeon and (unfortunately) sometimes we're the statue.


BBB

Thanks. This industry has left me being the statue too many times. :erm: This time will be my last. Who knows whats next, but it sure will not be aviation.

EDIT: My wife is convinced it is the best thing for me. As long as I keep my wants in focus and will not be forced to "settle" for something to pay the bills I think she is right. I want days with weekends and holidays off. Aviation has sucked countless family time away from me over the years.

 

[DC8CRIVER]

For those of you that take Appel at his word, his plans to have a deal inked by the end of August are now out the door. It's going to be VERY difficult for DHL & UPS to come to terms. It would be best to NOT believe much, if any, of the propaganda that you hear from DP and DHL corporate.

First, DHL has hidden profits and losses for years. They were hit with a $500 Million fine in the mid 90's for tax evasion. To say they are losing $1 billion in the US is very likely a numbers game to drive the US costs up and justify the merger between DHL & UPS.

Furthermore, there are MANY alternatives to the proposed merger, they just are not willing to look for them. One alternative would be to abandon ILN and move back to CVG where they still own a brand new $315 million sort facility (and move the ILN jobs down with the planes). Another would be to shut down the DHL US HQ in Plantation and move it to a more cost effective location (near sort operations for example).

The most obvious way to stem losses would be to refleet one or both airlines. DHL has refleeted airlines in Hong Kong, England, and Europe. Why not the US? The cost of the transfer of flying has been stated as $2 billion - just to transfer flying - in addition to the $1 billion to pay UPS to fly the stuff.

You know, a billion here, a billion there... you add all that up and you're starting to talk about some REAL money.

As far as the anti trust let's say, hypothetically, that Fedex wanted to cut costs and subbed out all Fedex flying to UPS (stop salivating, brown suits). Is there anyone that thinks that UPS would NOT have total control of the express shipping business if all Fedex did was pick up purple boxes and give them to UPS?

C'mon. Get real. It would be a merger if it were Fedex and UPS - so it has got to be a merger between UPS and DHL. It's illegal - and just because their lawyers say it isn't so doesn't make it right.

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[PreContact]

Furthermore, there are MANY alternatives to the proposed merger, they just are not willing to look for them. One alternative would be to abandon ILN and move back to CVG where they still own a brand new $315 million sort facility (and move the ILN jobs down with the planes). Another would be to shut down the DHL US HQ in Plantation and move it to a more cost effective location (near sort operations for example).

How is this more efficient than what's been proposed with UPS? Do you think all your workers would just pack up and move to Cincinnati? And how much money can moving a corporate HQ save? I just don't see it...

 

[shooter]

When you sit back and look at this whole mess, forget that we are about to lose our jobs, forget about the Congressional hearings coming up, forget about the few that are sporting wood over the soon to be unemployed, forget about the conspiracy theory's and suspected collusion.......just sit back and look at what Deutsche Post has done since they bought DHL and Airborne Express. Forget that you work for them for just one minute......


Now look at all the decisions they have made on how to run a business and tell me you don't get a big 'ol belly laugh at the darn fools. Like an Inspector Clouseau running a business.

 

[DC8CRIVER]

Shooter,

You are correct; It would be really funny if it weren't so pathetic and tragic. Sad that so few make such bad decisions that ruin so many lives.

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[DC8CRIVER]

How is this more efficient than what's been proposed with UPS? Do you think all your workers would just pack up and move to Cincinnati? And how much money can moving a corporate HQ save? I just don't see it...

DHL owns the entire airport in Wilmington, Ohio. Some of the cost savings would be from the elimination of all the costs of owning and running your own airport. Not only does DHL pay ABX to repair the runways, mow the grass, plow the snow, and change the light bulbs in the taxiways, they also pay to maintain the ILS's, staff the tower, staff the fire house, provide security, maintain parking lots, administer the airfield operations, etc, etc. On top of those expenses, DHL pays ABX a 1.75% over ride as the contractor that operates the airfield. At CVG, obviously the government pays all of those costs.

DHL paid $6 or $7 million a year in CVG as landing fees. $6 or $7 million is a fraction of what DHL pays to run ILN.

As far as the workers moving, a quick of your Google Earth shows that the two airfields are 52 miles apart. Many of the CVG workers never had to move when ILN ops began due to the close proximity of the two facilities and I suspect (especially with the Wilmington housing market headed down the toilet) that many workers would simply reverse that and commute to CVG.

The sort facility at CVG would require no expansion as the volume that we currently carry in ILN is below the max capacity of the abandoned CVG sort.

Some of the savings from a Plantation HQ closure are being realized as we speak. The Plantation workforce has been slashed and there is an obscene amount of vacant office space at the DHL HQ down there. DHL administration was very top heavy and expensive.

By shifting the flying, they are tripping over dollars to pick up dimes (don't most airlines do this?). The reason DHL is losing money in the US (if they really are at all) is NOT due to the airlines that do their flying. This is simply a brazen move to create a de facto merger when they both realize that a literal merger would be illegal.

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