| Speaking as a former DHL driver- DHL pulled out of the domestic market because they ran the domestic operations they picked up from Airborne Express into the ground.
When DHL bought out Airborne, Airborne was the 3 largest domestic carrier in the US. It was competitive, It was making money (not a lot) and had a huge customer base. DHL came in and threw billions (yes billions) of $$$ at restructuring the sorting facilities and equipment. They did nothing to attract new customers, they were banking on the customers coming to them. They thought that saturating the market with advertising, big yellow and red trucks, and god awful yellow and red uniforms would bring customers over. It was a "if build it and they will come " attitude, well it did not work. Customer service was terrible. Management was terrible. They had a huge package sorting restructuring in 2005(i think it was) during the holidays (busiest time of year) turn disastrous, it resulted in overnight packages being delivered weeks (yes, weeks late)and a loss about a 1/3 of the customer base they had. Since then they never recovered.
Spring of 07 they begin negotiations with teamsters for a national DHL contract, We were under the "national master freight agreement" for many years, NMFA was made up of several trucking companies. DHL also wanted part timers, because they told the union that they needed them to be compete with Fedex,UPS, which already had part-timers. The teamsters gave them what they wanted. DHL also gave into the union demands as well, one of which was an increase in hourly pay (which I though was stupid), the company is losing 700 million a year and they give in to a pay raise demand by the union???
SO, in spring of 08 we vote in the contract. DHL implements the part-time program and completely F*&ks it up. Finding out that it costs as much or more money to hire part-timers as it does to pay the full-time drivers over-time to do the same thing. So they scrape that, then they announce that they will have UPS take over transportation and sorting of packages for them, supposed to save 1-2 billion a year, at the time they were losing about 1 billion a year overall. Only jobs lost were to be the pilots and the main sorting hub in Ohio. Management tells the drivers this move will make up for the loses and that we should not see any reductions in # of drivers (this was in late summer of 2008. Then in November 08 DHL cuts all domestic point to point operations in the U.S, but keeps the international operations going. Number of driver jobs in the San Francisco bay area goes from about 700 to less than 300, another 200-300 management and service jobs (clerks, customer service,, etc.) are gone. DHL announces the move blaming the economic times! They would have crashed if it was a great economic time!!!!
They did give all the drivers 2 weeks of pay for every year of service up to 11 weeks, plus pension and medical for 3 months.
What went on with DHL reminds of what is going on now with our government thinking they can solve all of our problems by throwing money at it (that includes the current and former administrations). Well it does not work and your and my children are gonna suffer!
__________________ |