DHL LETTER FROM SEN. VOINOVICH
December 22, 2008
Please see below for a letter written by Sen. George V. Voinovich (R-OH) to Deutsche Post World Net Chairman Dr. Frank Appel concerning DHL:
December 22, 2008
Dr. Frank Appel
Chairman of the Board
Deutsche Post World Net
Charles-de-Gaulle-Str. 20
53113 Bonn
Federal Republic of Germany
Dr. Appel:
Since May 28, when Deutsche Post World Net and its U.S. subsidiary DHL Express U.S. (collectively “DHL”) announced it intended to abandon its Wilmington, Ohio, airpark, the company promised it would provide substantial mitigation assistance for the community and its workers. As we are sure you are aware, the closing of the Wilmington airpark will result in the loss of over 8,000 direct jobs and tens of thousands of indirect jobs in the Wilmington area, overwhelming the social safety system designed to assist workers.
We have repeatedly expressed our substantial concerns about the transaction between DHL and United Parcel Service, Inc (“UPS”). Still, during the Congressional hearings regarding the proposed transaction between DHL and UPS, DHL management repeatedly gave assurances, including testimony to Congressional committees, that DHL was “committed to working with state and community officials there to assist employees and their families who will be affected by this necessary restructuring.” In fact, these workers heard John Mullen, CEO of DHL Express, testify that DHL has already agreed “to provide in excess of $260 million in severance, retention, and health-benefit arrangements for the workforce in Wilmington,” including approximately $225 million over and above contractual and legal obligations. We believe Mr. Mullen’s testimony gave some small measure of comfort to Wilmington-area workers.
We understand that DHL has yet to begin providing substantial amounts of the resources committed to assist the Wilmington area and its workers. Consequently, we are concerned that DHL may fail to provide all of the pledged assistance. We have also been made aware that DHL’s departure from the U.S. market could have a detrimental impact on worker pensions in the U.S. It is our hope that DHL works to ensure that the pensions of its U.S. employees are funded so as not to require PBGC intervention, and that DHL works with the incumbent airlines and their unions to resolve remaining severance and pension issues.
DHL should understand that its failure to provide the promised mitigation assistance will be viewed as another example of the company’s dismissive treatment, which will not be easily forgotten in the United States. The recent economic crisis has already undermined many Americans’ views on matters such as completing the next stage of the Open Skies negotiations, how foreign investment into the United States is viewed, and general U.S.-German trade relations. In short, by failing to honor its mitigation assistance commitments in a timely manner, DHL sends a strong signal that German companies cannot be trusted to keep their word.
The lack of progress in meeting DHL’s commitments is particularly frustrating given that when a similar situation arose earlier this year in Germany related to the closing of a Nokia mobile phone manufacturing facility, government officials and local workers demanded, and received, substantial mitigation assistance. Moreover, we understand that the assistance package provided for displaced Nokia employees was far in excess of what DHL has promised for a significantly larger number of workers in Wilmington.
In the spirit of DHL’s stated promises to its employees and the people of Wilmington, now is the time for DHL to act as a responsible corporate citizen and begin to honor those commitments. We would appreciate a prompt response, including a specific description of how DHL will meet its commitments.
Sincerely,
______________________ ______________________ ______________________
George V. Voinovich Sherrod Brown Michael Turner
United States Senator United States Senator Member of Congress
cc: Her Excellency, Dr. Angela Merkel, Chancellor of the Federal Republic of Germany
Ambassador Klaus Scharioth
Jurgen Weber, Chairman of the Supervisory Board, Deutsche Post World Net
Ted Strickland, Governor of Ohio
David Raizk, Mayor, City of Wilmington
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