All Ohio members of Congress have signed off on letters to the U.S. Justice Department and Federal Trade Commission, asking the agencies to consider an antitrust initiative against the planned transaction between DHL and the United Parcel Service (UPS).
“It highlights at least two areas of the law that they [Ohio legislators] believe are relevant to an antitrust action,” said Ohio Gov. Ted Strickland, in town Thursday for a regional task force meeting about the Wilmington Air Park as well as to attend the Clinton County Democratic Party’s spring dinner.
After the task force meeting in Kelly Center on the Wilmington College campus, Strickland held a press conference in the building’s lobby. After that, he met with the grassroots Save the Jobs movement when he heard personal stories from air park employees and was asked to consider leading a delegation of workers to Germany, the home country of DHL’s parent company Deutsche Post.
Save the Jobs spokesman Capt. Joe Teuchert, a pilot with ASTAR Air Cargo, said the delegation would include air park workers with ASTAR, ABX Air and DHL to meet with Deutsche Post, the German media and representatives of the German government.
“With your standing and influence, and the media attention attached to such a trip, such a delegation could have a very positive impact and results,” Teuchert told the governor.
Strickland indicated he was open to the idea, emphasizing how critical the situation is for the residents of Wilmington and the surrounding region.
“I think there are few situations in the country, maybe no situation in the country right now, where something is happening of this magnitude to have the kind of economic impact that it will have upon this region and the people who live here,” Strickland said.
The impact would be intensified because the massive unemployment would occur in a relatively light population area, he said. If the same amount of people lost jobs in a big city, then it might be less of an economic calamity because of the possibility “it could be absorbed into the larger [metropolitan] economy,” said Strickland.
“My only concern is, would they meet with us? Would it do any good? And all those things,” Strickland said.
At the press conference, the governor was asked what he thought about Deutsche Post’s unwillingness to examine or respond to ABX Air’s alternative offer to the proposed deal between DHL and UPS.
“As I understand it, until the contractual negotiations are completed one way or the other with UPS, they would not be able at this point then [to] take under consideration another proposal,” Strickland replied.
Wilmington Mayor David Raizk added the prohibition is due to a nondisclosure clause “that’s quite common during periods of negotiation between two companies. It’s a private matter; none of us would be privy to it.”
Strickland said, “We think that that’s likely the reason [for no response].”
After attending the task force meeting, Air Transport Services Group (ATSG) Chief Executive Officer Joe Hete said he appreciates that the governor and other elected officials in Ohio have recognized the magnitude of the issues at stake and are prepared to take action.
“On behalf of the thousands of ABX Air employees who remain focused on providing outstanding service to DHL, I would like to thank Gov. Strickland for coming here to discuss his efforts to prevent DHL from abandoning Wilmington to contract with UPS. Although ABX Air and ATSG are continuing efforts to present DHL with our proposal to preserve the majority of jobs at the air park, we recognize that, if we are unsuccessful, government action may be the only alternative to protect the interests of the people in Wilmington,” Hete said.
During Strickland’s meeting with participants of the Save the Jobs movement, Teuchert stressed Deutsche Post needs the U.S. market more than the United States needs DHL or Deutsche Post.
Mary Houghtaling, a pilot’s wife and head of a local hospice, said the projected loss of at least 7,400 air park jobs would hurt nonprofits in the area in terms of donations and volunteers, while at the same time increasing the need for the services provided by the local nonprofit organizations.
She referenced natural disasters such as the recent floods in Iowa plus earthquakes and hurricanes. But a massive loss of air park jobs and the harm it would cause to workers and their families is not a natural disaster, Houghtaling observed.
“It is a manmade catastrophe,” she said, elaborating that it is a disaster that — unlike disasters let loose by nature — does not have to happen.