Ohio Delegation Calls For Justice Department To Investigate UPS-DHL Transaction

June 9, 2008

Washington, D.C. – Following a meeting convened by Congressman Mike Turner (OH-03), United States Senators Sherrod Brown (D-OH), George Voinovich (R-OH), and a bipartisan group of Members of Congress are urging the Justice Department to investigate the upcoming partnership between DHL and UPS. The bipartisan group of legislators sent a letter to Attorney General Michael Mukasey, requesting that he employ a high degree of scrutiny in examining the antitrust implications of the proposed transaction.


“My colleagues and I are committed to making sure that this process receives a thorough review by the Department of Justice and that our constituents are extended every possible resource and protection,” Congressman Turner said. ”The proposed partnership between UPS and DHL raises many questions about what would happen to Ohio’s economy and the national and international shipping markets.”
UPS and DHL recently agreed to enter into a partnership, the terms of which would allow UPS to assume much of DHL’s American business operations. The proposed reorganization plan would cause DHL to close operations at their hub in Wilmington, Ohio and cause the loss of an anticipated 8,000 jobs.


“The agreement between DHL and UPS raises several serious questions about fair competition,” Senator Sherrod Brown (D-OH) said. “After conversations with DHL, workers in Wilmington, and federal officials, my colleagues and I are asking the Justice Department to immediately review the proposal. This is not just about jobs; this is about the livelihood of thousands of Ohio families and the well-being of an entire region.”


“Transparency and scrutiny are the words of the day when it comes to the proposed partnership between UPS and DHL,” Sen. George Voinovich (R-OH) said. “The Ohio delegation is working together to protect the 8,000 jobs in Wilmington that could be impacted by this move.”


Under the proposed terms of the agreement, DHL would pick up and deliver products but would have no role in product shipping and sorting. These roles would be filled by UPS, which also acquired Emery Airlines in Dayton in 2005 in a consolidation move that cost approximately 1,200 jobs. These consolidations could have a detrimental impact to Ohio’s economy as well national and international implications.


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