DHL says it’s preparing severance benefits plan for Wilmington workers
DHL August 19th, 2008
The leader of the German ownership of DHL, architect of a cost-cutting plan that would wipe out thousands of jobs in Wilmington by hiring United Parcel Service to handle DHL’s U.S. cargo airlift, says the company is preparing a plan of severance and other benefits to ease the economic blow to Wilmington.
“DHL has already committed to fund a triple-digit million-dollar amount on planned severance, retention and health benefits for the work force in Wilmington _ that includes ABX, ASTAR and DHL employees — and other U.S. locations,” Frank Appel, chief executive officer of Deutsche Post World Net, said in a letter Monday, Aug. 18, to Republican presidential candidate John McCain, who made a campaign stop in Wilmington on Aug. 7.
A broad array of Republicans and Democrats have been urging DHL to reconsider its ongoing effort to hire UPS, which DHL says is essential to reducing its annual U.S. losses of $1.3 billion. Political leaders from both parties are calling for a federal antitrust investigation of whether a DHL-UPS deal would limit market competition; DHL says it would not. The U.S. House plans hearings next month in Washington to examine the issues.
Appel, based in Bonn, Germany, wrote that he is personally involved in the preparation of the benefits plan, along with a team of other senior executives.
“Once that plan is established, I plan at the appropriate time to travel to the U.S. to discuss how we can implement it in close cooperation and in open dialogue with local authorities and other stakeholders,” Appel wrote. “I will be happy to keep you informed on progress.”
Appel responded to McCain’s Aug. 12 letter asking that Appel come to Wilmington to explain to people there his decision to hire UPS. That would wipe out an estimated 8,200 or more jobs at DHL’s Wilmington air freight hub, which ABX Air operates and from where ABX and ASTAR Air Cargo nightly fly DHL packages across the United States.
The Ohio Department of Development is aware of DHL’s plan, but still awaits details from the company, said Kelly Schlissberg, a spokeswoman for the state.
Mark Dimondstein, an organizer with the American Postal Workers Union who helped start the Save the Jobs Committee, a community group lobbying to keep the jobs in Wilmington, said he was aware that DHL was preparing a severance-retention benefits plan. But it won’t help the employees or the region’s economy, he said.
“Our point is, the people need the jobs, not the severance pay. The benefit of a severance plan is to the company, so people won’t leave right away. They want to keep the people there until the doors close,” Dimondstein said. “But at some point, the health care and all that runs out. What the heck are the people going to do?”
Tags: Wilmington workers
About