New Efforts To Protect Jobs In Wilmington

[FastHap]

Web produced by: Ian Preuth

There's new information on several new efforts to protect thousands of jobs at stake in Wilmington.

DHL wants UPS to take over transporting packages, a move that would eliminate 6,000 jobs at ABX Air.

The American Postal Workers Union held a forum Sunday and is fighting the proposed plan.

Lieutenant Governor Lee Fisher also met with labor leaders on Sunday to discuss several options.

Fisher said the state will do everything it can to try and protect the jobs.

http://www.wcpo.com/news/local/story.aspx?content_id=1f9dfec1-353d-4e79-bc36-743ff7e49eb9&rss=703

 

[FastHap]

Governor: State reviewing antitrust implications of DHL-UPS deal

Monday, June 02, 2008

Gov. Ted Strickland said he is asking his top legal advisers to investigate whether DHL's proposal to hire the rival United Parcel Service to fly DHL's U.S. cargo would violate U.S. antitrust laws by reducing competition in the express package delivery market.
Strickland said on Monday, June 2, that he has asked his chief legal counsel, Kent Markus , to examine any possible antitrust issues and will soon be making a similar request of his newly appointed state attorney general, Nancy Rogers.

The state has been accommodating to DHL with support for the expansion of its North American air freight hub at Wilmington in recent years, Strickland said. Ohio wants to take all possible actions to avert the possible loss of 6,000 jobs at Wilmington that has been forecast if the DHL work there is shifted to UPS' sorting and delivery facilities elsewhere, the governor said. ABX Air Inc. and ASTAR Air Cargo currently both fly DHL cargo from Wilmington and employ a combined 1,150 pilots, plus thousands of other workers there.

"I am not willing to simply acquiesce to what DHL is suggesting here without making sure that any antitrust issues are resolved to our satisfaction, and that any possible future use of the facility which would keep it a viable, job-producing facility must be explored," Strickland said in a telephone interview with the Dayton Daily News. "I think DHL has an obligation to the community and to the state, because we have tried to work in such a way as to be good partners."

Strickland said that two top DHL officials, John Mullen, the company's global chief executive officer, and Wolfgang Pordzik, its head of government relations in the United States, are to meet with him Wednesday morning in Columbus. They are to spend Tuesday meeting in Washington with members of Congress including Ohio Sens. George Voinovich and Sherrod Brown and Rep. Mike Turner, R-Centerville, the governor said.

"When I meet with the CEO, I will hope to explore all matters with him, including any possibility of having a change in DHL's decision," Strickland said. "My preferred outcome, obviously, would be for the jobs to remain as they are."
DHL does not believe that any regulatory approval is needed for the proposed deal with UPS because it would simply be a relationship between vendors, but the company will respond to any questions from regulators, DHL spokesman Jonathan Baker said Monday. The U.S. Department of Justice and the Federal Trade Commission have jurisdiction in antitrust matters.

The DHL meetings with Congress and Strickland are "courtesy visits" as part of the company's ongoing dialogue with government officials, Baker said.
The Dayton-Montgomery County Port Authority in March 2007 sold $270 million in bonds to support DHL's expansion and upgrading of the Wilmington hub in recent years. That requires DHL to repay the bonds over 40 years, which would put pressure on the company to find a new use for the one-million-square-foot Wilmington sorting facility and airport if jobs are lost there and it generates less revenue, said Ron Parker, the port authority's executive director.

"They're the ones that are on the hook for the bonds and the debt," Parker said. "You can bet that they're going to want to solve that problem."
Any future use for the Wilmington hub would be subject to discussions with the ABX Air and ASTAR airlines and local authorities, Baker said.

"There's nothing concrete, as of yet," Baker said.

http://www.daytondailynews.com/b/content/oh/story/business/2008/06/02/ddn060208dhlweb.html

 

[Jurassic Jet]

I seriously doubt there will be any anti-trust findings. DHL has stated they intend to still compete with their own product.

 

[mxer]

I would have to agree. As stupid as they apparently are, they have had plenty of practice dealing with the issues of anti-trust laws and foreign ownership. Its a shame something as simple as, don't trash can the part of your company that is 98+% effect while protecting the part that is costing customers, has been so elusive to them.

 

[AV8OR]

I would have to agree. As stupid as they apparently are, they have had plenty of practice dealing with the issues of anti-trust laws and foreign ownership. Its a shame something as simple as, don't trash can the part of your company that is 98+% effect while protecting the part that is costing customers, has been so elusive to them.

Thats why I think this is a ruse for an exit strategy. They said they won't pack up and leave caue that would be Lunacy. Well this is Lunacy 2.0! They contract with the competion to help them compete then in time leave quietly. It's like hiring Dr. Jack Kevorkian to help administer your chemotherapy treatment. You really just want to die, but till then, you'll pretend you want to live. It's delusion at it's grandest scale. Sucks to be caught in it's wake.

Best of luck to us all!

 

[ABXbooger]

I gotta ask, didn't DHL do this down in CVG? They screwed them over, why won't they do it again?

 

[hvydriver]

Booger,

Yes, it was pretty much the same tactic. Though if I recall correctly, they did offer interviewing in ILN for the sort staff, if they wanted to commute. Don't hold me to that, though. Also, they didn't even let CVG make a counterproposal to the OH offer to DHL. I read the Gov's press release. DHL isn't going to say anything about extra incentives to stay. They want out.

 

[abxdx]

Exactly! Look, they have lost a ton of customers since this announcement. Even if they decided not to go with UPS. There is going to be nothing to go back to, the customers are all gone!!! The few that remain will also soon be gone. Its over, finito, hasta la vista,caio...... Look to the future! I think ABX along with ATSG has one. They did the smart thing and diversified the company. WE HAVE THE 767's wich are in demand. It will never be what it was, but this company can continue. We cannot save all the jobs and that is sad, but some will remain. As ABX employees we need to get our house in order. Salesman need to sell those acft. Maintainers need to keep up our excellent reputaion for reliability.Pilots need to fly, and do what it takes to get the job done and keep the customer happy and so on and so on...
Just forget about DHL, I think in a few years or sooner you are going to see them conceed all of thier U.S business anyways. You will get the last laugh!!!

I gotta ask, didn't DHL do this down in CVG? They screwed them over, why won't they do it again?

 

[FastHap]

Economic Task Force For DHL Hub In Wilmington

WILMINGTON, Ohio -- A broad-based regional task force spearheaded by Wilmington Mayor David Raizk, at the request of Lieutenant Governor Lee Fisher, has begun work to preserve jobs and craft economically feasible solutions for the future. The urgent need for action stems from the potential effects of a possible direct job loss of 8,200 — with significantly more indirect job losses — in Wilmington, the region, and throughout the State of Ohio.

"DHL’s May 28th announcement of its intention to pursue negotiation with UPS to handle its U.S. airlift operation has sent a shockwave through the region and across the state,” said Mayor Raizk. “We are committed to developing a solution that is workable to DHL so that its decision can be revisited and reshaped to include the DHL hub in Wilmington."

"The State of Ohio stands ready to marshal the necessary resources to ensure a strong presence at the Wilmington Air Park," said Fisher, who also serves as Director of the Ohio Department of Development. "We believe that Wilmington, the Greater Clinton County area, and the State of Ohio have enjoyed a strong partnership with DHL, and we are determined to maintain operations and employment at the site."

The task force, comprised of federal, state, county, and local representatives, in addition to business and community leaders and ABX Air and ASTAR representatives, is focused primarily on the retention of the thousands of direct and indirect jobs associated with DHL’s operations at the Wilmington Air Park and increasing the strategic competitive advantages of the Air Park. However, the task force is also considering scenarios that might require assistance for displaced workers and job replacement.

"The economic impact of a possible loss of at least 8,200 jobs is a significant and real fear for the community, and it merits an all-hands-on-deck approach," said Clinton County Commissioner Randy Riley.

Based upon 2006 data, the air park is the largest employer in the six-county area, including Clinton, Fayette, Highland, Brown, Ross, and Adams counties. In Ohio as a whole, air park employees are from 45 of Ohio’s 88 counties. An economic impact study is underway to quantify the impact, but the losses may include employee wages, tax and revenues to local business, Wilmington Public Schools, Clinton and surrounding counties, and Wilmington itself.

"Across America, you hear stories like this," said Highland County Commissioner Mike Rector. "What’s different about this announcement is that the loss, if it comes to pass, would hit this area hard. The growth of the facility has provided jobs, employment and benefit for the entire area. We’ve worked hard to make it successful, and losing it would be devastating."

"Every child at Wilmington’s schools is either the child of an air park employee, or a friend’s dad or mom is there," said Ron Sexton, superintendent of Wilmington schools. "I’ve been here for 28 years and have seen this town go through things like this before. I offer our commitment that our schools will always partner with the community and work to make sure our students are prepared for the future."

"There are a lot of numbers and the impact is huge, but in the end it’s about people," said Mayor Raizk. "These aren’t numbers, they are real people that could be facing a real crisis. The true story is how we avert this crisis, and protect real people."

Ohio is a U.S. logistics leader, and DHL is the cornerstone of Ohio’s logistics industry cluster. DHL’s national sort facility in Wilmington is a key player in our logistics management network that encompasses the entire spectrum of the industry. Ohio’s central location and transportation strengths, including DHL, means that companies located in Ohio are within one day’s drive of 62 percent of U.S. manufacturing facilities and within 500 miles of 59.5 percent of the U.S. population. DHL is crucial to Ohio maintaining our edge in the logistics industry.

http://www.whiotv.com/news/16474766/detail.html?rss=day&psp=news

 

[hvydriver]

Exactly! Look, they have lost a ton of customers since this announcement. Even if they decided not to go with UPS. There is going to be nothing to go back to, the customers are all gone!!! The few that remain will also soon be gone. Its over, finito, hasta la vista,caio...... Look to the future! I think ABX along with ATSG has one. They did the smart thing and diversified the company. WE HAVE THE 767's wich are in demand. It will never be what it was, but this company can continue. We cannot save all the jobs and that is sad, but some will remain. As ABX employees we need to get our house in order. Salesman need to sell those acft. Maintainers need to keep up our excellent reputaion for reliability.Pilots need to fly, and do what it takes to get the job done and keep the customer happy and so on and so on...
Just forget about DHL, I think in a few years or sooner you are going to see them conceed all of thier U.S business anyways. You will get the last laugh!!!

abxdx,

I don't wish you guys any ill will. However, if DHL goes away, I think it's curtains for both Astar and ABX. Daz won't be able to find enough work to keep us operating, and your stock is going in the tank. Some sort of merger is the only hope for either side, presuming DHL would want that. We'll just have to hang on and see. Not much other option out there.