UK DHL Express managers' unrest
Pressure in the domestic parcels sector has pushed major player into loss, sources say.
By Sarah Dennis
Managers at DHL Express have claimed that the company is losing up to (pounds sterling)2m a month.
Sources blame rising costs and customer restlessness and say several large, long-standing accounts have been lost.
There has been little evidence of the proposed integration between the domestic and DHL International operations going ahead, they say.
The comments are made this week in response to Motor Transport’s story last week about a pay and bonus freeze for managers.
Sources say that managing director Chris Muntwyler, who was brought in from Central Europe following the departure of John Hogan last year, did not take part in an information fair held three months ago to give details of the integration project. There has been no mention of integration since then, managers say, and they refute DHL comment last week that it is being done on a site-by-site basis.
“It is absolute rubbish. The international and domestic arms are essentially two separate companies working under the umbrella of Deutsche Post and there is a big divide,” says one manager.
IT systems and employees’ terms and conditions at the two arms are different, MT is told. A promised levelling of pay and benefits levels by April this year failed to happen.
Similarly, commitments given to new recruits have not been met. “DHL bosses realise it is hard to attract managers,” one said.
DHL International managers get company cars and salaries worth up to (pounds sterling)5,000 more than those at the domestic operation, which is seen as the poor relation. “Any new systems are put to the international operation first. With them, money is no object,” our source says.
Managers’ frustrations are further increased by an increase in “bureaucracy and number crunching. We are not allowed to manage. All we are there for is to do month end reports and set budgets. We are not actually running the centres and everything we do is put under the microscope.
“Everything they are doing is about cost-cutting and checking the brand image. I have not met one employee who says they are proud to work for DHL Express.”
Criticism is tempered by a recognition that improvements in profitability in the domestic business are needed and that the parcels sector as a whole has struggled in the past year; but morale is at an all-time low, sources insist.
DHL Express said on Tuesday that Chris Muntwyler was in a board meeting and unavailable for comment.
