Pressure Building On DHL To Suspend UPS deal

Community leaders in Wilmington found a powerful new friend in the nation’s capitol Tuesday.

After taking testimony on DHL’s plan to outsource work to UPS and eliminate more than 8,000 jobs in Wilmington, House Judiciary Committee Chairman Rep. John Conyers called upon DHL executives to suspend talks with UPS.

Rep. Mike Turner, R- Centerville, who was instrumental in making the hearings possible, said Conyers now agrees with him that there are problems with the DHL deal.

“There are serious issues that go right to the heart of anti-trust. He (Conyers) indicated that he will have additional hearings to get to the bottom of what the impact will be upon the U.S. economy. And we certainly gave him enough information on what will happen with southwest Ohio,” Turner said.

Turner said Conyers does not have the power to enforce his call for suspension of talks between DHL and UPS.

Still, Turner views the call from the chairman as an important development.
“It’s a pretty strong signal from the committee chair that he will continue to investigate this transaction and he has asked them to suspend the transaction while they go forward. That could have a big impact,” Turner said.

Wilmington Mayor David Raizk echoed comments from Turner.

“We had the best possible outcome we could have had from that type of hearing,” Raizk said.

DHL and UPS executives made no commitment on the request for suspension of the talks between the companies.

They testified that DHL is losing $5 million a day and the contract with UPS is necessary to return to profitability. Both companies denied a contract between them would be a merger.

Turner and other critics called it a “de facto merger.”

David Ross, President of the Airline Professional Association / Teamsters Local 1224 in Wilmington, said he believes the case against the DHL plan is finding increased support in Washington.

He is hoping the Judiciary Committee continues to hold hearings and brings in the Justice Department to determine if there are potential anti-trust violations.
Ross said action needs to be taken sooner, rather than later.

“If it’s not anti-trust, then let it go. But if it’s anti-trust and they allow this process and start to shift all of the freight over to UPS, once that process starts, it is going to hard to stop, “ Ross said.

Raizk said the next step in the process in Washington will be a hearing before the House Transportation Committee, scheduled for next Tuesday.

Company executives and community representatives, including Raizk, are expected to testify.