Groups Asking Justice Department to Look at Potential Anti-Trust Issues or Union Contract Violations; Several Recent Mergers have Reduced Overall Express Competition, Congressman Says
While troubling news to many parcel shippers, the announcement in June by DHL that it would substantially revamp its money-losing US network and outsource air freight movement and sortation to UPS is even bigger news in Ohio, where the plans include shutting down DHL’s hub in Wilmington, costing as many as 8,000 jobs.
Is the story over? Perhaps not yet.
First, ASTAR Air Cargo flight crew members, represented by the Air Line Pilots Association (ALPA), have filed a union grievance requesting a full investigation of alleged contract violations that might result from a proposed agreement between DHL and United Parcel Service (UPS).
“We are outraged over the proposed transfer of our work to UPS,” Capt. Patrick Walsh, chairman of the ASTAR pilots’ union, said in a press release. “The proposed DHL/UPS agreement is a fraud against our pilots, thousands of other hard-working employees, and all the American consumers who use express delivery. It seems the company will stop at nothing to circumvent antitrust laws and scam the consumers.”
Meanwhile, several Ohio legislators are also looking at issues that might perhaps scuttle or change the deal.
Mike Turner, a congressman from the Dayton area that includes the Wilmington DHL hub, noted that this latest move is one of a string of transactions over the past few years that in total have dramatically reduced total competition in the express transportation market.
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