Brief country report: United States of America – Main developments in the postal sector (2006-2008)
Brief country report: United States of America – Main developments in the postal sector (2006-2008)
Read MoreTag: USA
UPS says its plan for DHL Express will save 40,000 jobs
United Parcel Service said its plan to take over U.S. air shipments for Plantation-based DHL Express will preserve competition and 40,000 U.S. jobs.
The House Judiciary Committee held a hearing in Washington on competition in the package-delivery industry. UPS and DHL are still negotiating an agreement, Wallace said. Malcolm Berkley, a UPS spokesman, said before the hearing there is no timetable for reaching a deal.
UPS is trying to blunt criticism from Ohio lawmakers and labor-union leaders that its plan with DHL will harm competition and cost jobs. UPS said May 28 it was working an agreement to take over shipments from two DHL vendors with a hub in Wilmington, Ohio.
Removing business from existing DHL vendors, Miami-based Astar Air Cargo and Ohio-based ABX, will cost 10,000 jobs, said John Prater, president of the Air Line Pilots Association, in testimony. Prater said his union represents 500 Astar pilots.
Read MoreDHL Express Global CEO testifies before House Committee on the judiciary
DHL Express Global CEO John Mullen testified before the House Committee on the Judiciary regarding the company’s potential contract with UPS for domestic air lift and related services. The proposed agreement with UPS is part of DHL Express’ U.S. restructuring aimed at enabling the company to remain a viable competitor in the U.S. market.
During the Hearing, Mullen stated that the pending deal with UPS does not violate antitrust laws and does not decrease competition in any way. He added that the contract is a pro-competitive vendor-services agreement for air and related services only. “DHL would retain complete control over every customer-facing aspect of the business and remain an independent and viable competitor in the U.S. air express delivery sector retaining full control over our ground operations, as we do today,” Mullen stated.
The potential execution of this pending agreement will affect DHL employees, as well as those of DHL’s current air service vendors, ABX Air and ASTAR Air Cargo at the Wilmington Air Park. DHL is sensitive to this situation and therefore has agreed to provide a generous USD 260 million severance, retention and other benefits, USD 225 million of this voluntarily, to impacted DHL, ABX and ASTAR employees.
Read MoreFedEx Corp. first quarter earnings expected to exceed guidance
FedEx Corporation announced that it expects to report earnings of USD 1.23 per diluted share for the first quarter ended August 31. Previous earnings guidance was USD 0.80 to USD 1.00 per diluted share. For fiscal 2009, the company reaffirmed its earnings guidance of USD 4.75 to USD 5.25 per diluted share, as weaker macroeconomic conditions offset better-than-expected first quarter results. This outlook assumes current fuel prices.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management,” said Alan B. Graf, Jr., Executive Vice President and Chief Financial Officer. “While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by USD 400 million, to USD 2.6 billion for fiscal 2009.”
Pitney Bowes Appoints Murray Martin Chairman of the Board
The Board of Directors of Pitney Bowes Inc. announced that effective January 1, 2009 Pitney Bowes Chief Executive Officer (CEO) Murray D. Martin will become Chairman of the Board of Directors. Mr. Martin has been CEO since May 2007 and he will retain these responsibilities when this new appointment becomes effective. The company previously announced Michael J. Critelli’s decision to retire as Executive Chairman and Director at the end of 2008.
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