Posts Tagged ‘DHL’

DHL pull-out creates domino effect

December 13, 2008

Wilmington Ohio braces for more job losses as ABX Air announced today layoffs of 1,900 because DHL terminates its contract with the company as of Jan.4th.   ABX operated planes and transport services for DHL in Wilmington Ohio where 1,000 of ABX jobs will be lost.

Its too late to bail out DHL and stop them from leaving the U.S. but in looking at candidates for bailouts, DHL acts as a model.  It is a company that acts as an economic hub where its failure cascades more failure through out an industry sector and such companies should be considered candidates for federal money if one of the goals of the bailout is to insure the continued basic functioning of the economy.

Listening to Elizabeth Warren who heads the Congressional bailout oversight panel on “Fresh Air” yesterday, its unclear the Treasury Department has a bailout strategy but given the likelihood of more sectors failing throughout the economy in the coming weeks and months, they had better come up with one.

Article on ABX layoffs

More trouble for DHL

December 12, 2008
DHL franchisees

DHL franchisees

Not only were DHL employees shafted, so were its franchisees according to this complaint.   The franchisees claim that their contracts with DHL required that the company give them 90 days before discontinuing service which would alow them to methodically find alternative carriers.  That didn’t happen and now they are hung out to dry.  The entire lot of them, 93 franchisees in all are demanding $400 million.

Complaint courtesy Courthousenews

DHL deal makes worst list

December 11, 2008

Time magazine calls DHL’s purchase of Airborne Express in 2003, the deal the ushered in the company’s U.S. market entry, the #7th worst of 2008.   After letting go of  thousands of workers and devastating whole communities, I’d have to agree.  I find it insensitive of Time that it focuses on how much the company lost rather than the damage done to people.  The kicker to their story is that the company lost $10 billion on the venture.  What about the economic emergency DHL created in Wilmington Ohio?

This is one of those examples of the East coast elites’ inability to relate to the real lives of real Americans.

7.  DHL makes bad buy in Airborne

DHL Lawsuit Update: Help for Wilmington?

November 21, 2008

“The layoffs themselves will devastate the small town of Wilmington, Ohio, where DHL is headquartered. About 3,000 of the town’s 12,000 residents work directly for the company, while the remainder relies on it indirectly. “They’re taking away everything from me, my family, my friends—this whole town,” DHL employee Sherry Barrett told CNN.”

See: http://www.countercurrents.org/eley111108.htm

I would hope that government assistance can help out this town in some fashion but if not, I hope they are looking into a WARN lawsuit.  Unfortunately, sometimes the courts aren’t just the last resort, they are the ONLY resort.

Update:

The government has stepped in with a grant of $3.9 million for the 8,000 workers in the Wilmington area who have been laid off.  That’s about $500 bucks per worker.  Should help with thanksgiving dinner but not a whole lot else.

Article:

Update on DHL WARN Lawsuit

November 19, 2008

“The suit claims that 33% of DHL Express workers in Chicago, Franklin Park, Lisle and Alsip will lose their jobs. Mr. Ellis said in the suit that he was notified on Nov. 7 that his job was eliminated, without warning”

DHL claims that it followed the law.  We will see who the court thinks is right.

Article courtesy of Chicago Business.

DHL Layoffs Trigger WARN Lawsuit

November 15, 2008

I think this is going to be a common type of lawsuit in the coming months.  WARN is the Worker Adjustment and Retraining Notification Action that  requires a company to give employees with advance notice of a plant closing at their company.

Complaint courtesy Courthousenews.