The chairmen of two U.S. House of Representatives committees said Friday their committees will hold separate hearings related to the proposed DHL-UPS pact.
The House Judiciary Committee plans hearings on competition in the air shipping industry. The hearings will include, among other things, testimony on the proposed deal between United Parcel Service (UPS) and DHL Worldwide Express, as well as the impact of the previous consolidation of UPS and Emery Worldwide, according to a press release from the House.
In addition to the House Judiciary Committee, the House Committee on Transportation and Infrastructure said Friday the proposal announced May 28 to restructure DHL’s U.S. operations, in large part by turning to UPS for air transport, will be the subject of a hearing after Congress returns in September.
The press release issued by the spokesman for the House Committee on Transportation and Infrastructure referred to the proposed arrangement between DHL and UPS as a strategic alliance, using quotation marks around the words “strategic alliance”.
John Conyers Jr. of Michigan, the chairman of the House Judiciary Committee, was joined by Congresswoman Betty Sutton of Ohio in announcing that the committee’s Competition Policy and Antitrust Laws Task Force will hold hearings in September.
“A number of concerns have been raised regarding consolidation in the air freight business in general and the proposed consolidation involving DHL in particular, including the impact on jobs in the affected communities,” Conyers said. “I hope this hearing will allow all interested parties to make their case to the committee on this important matter.”
Said Sutton: “I am very glad that our efforts to have the Judiciary Committee Antitrust Taskforce hold a hearing on this critical issue have been successful and I thank Chairman Conyers for his leadership. This merger brings up major concerns for our local economy and working families. Not only does it have the potential to impact an estimated 8,000 jobs from the Wilmington, Ohio area, but the loss of competition may have serious implications for Ohio consumers.”
Sutton added, “I am deeply concerned by these possible job cuts and I look forward to working with Chairman Conyers, my colleagues from Ohio and the members of the Judiciary Committee Antitrust Taskforce to address this incredibly important issue.”
The Committee on Transportation and Infrastructure hearings were announced by Committee Chairman James L. Oberstar of Minnesota. The hearings were requested by the Ohio congressional delegation, including U.S. Rep. Mike Turner who represents the residents in the two counties facing the most extensive job losses — Clinton and Highland counties.
Oberstar said, “Just as I have opposed additional consolidation in air passenger service, I have serious concerns about the UPS-DHL alliance. My concerns include the transaction’s effects on service, costs, consumer choice, and jobs,” Oberstar said.
“This alliance is likely to eliminate two cargo air carriers, ABX and ASTAR, which now serve DHL and compete with UPS. This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package delivery services,” added Oberstar.
After Turner received confirmation Friday that two House committees will examine the proposed transaction, he said, “This is exciting; this is what we need. This may not stop the transaction, but if there’s a way to do it, this is the way to do it.”
He added, “This is going to make them answer the tough questions of what are they doing. We’re going to be able to tell the story of what’s happening to Wilmington, the promises that they made and they’re breaching. And hopefully we will get enough information to see if this violates antitrust laws, how do we stop it?”
If the proposed deal is allowed to be completed, said Turner, it would have consequences “beyond its devastating impact on our local, state and national economy. It would also remove a major element of the North American shipping market. … Hearings will allow our community and our nation to get more information from the people behind this decision.”
The ranking member of the Committee on Transportation and Infrastructure is U.S. Rep. John Mica of Florida. Mica recently toured the Wilmington Air Park facilities, said Turner.
Jim Berard, director of communications for the Committee on Transportation and Infrastructure, said his best guess as to the date of that committee’s hearings would be the second or third week in September. The House is not back in session until Sept. 8.
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