Teamsters wary of DHL, Airborne deal

March 26, 2003
The International Brotherhood of Teamsters said it's wary about the recent deal between DHL Worldwide Express and Airborne Express, noting that it will defend the contracts of the more than 9,000 employees it represents at Airborne. "We will monitor the progress of this acquisition to ensure that our members' interests are both fully represented and considered," said Teamster president James Hoffa.
The International Brotherhood of Teamsters said it's wary about the recent deal between DHL Worldwide Express and Airborne Express, noting that it will defend the contracts of the more than 9,000 employees it represents at Airborne.

"We will monitor the progress of this acquisition to ensure that our members' interests are both fully represented and considered," said Teamster president James Hoffa. "We reserve all of our rights as outlined in our Airborne contracts."

Third-party logistics carrier DHL Worldwide Express confirmed today that it will buy the ground delivery business of Seattle-based Airborne Inc. for about $1.05 billion.

About 8,000 Airborne drivers and dockworkers are covered under the National Master Freight Agreement (NMFA) and other freight contracts negotiated by the Teamsters. However, DHL uses subcontractors for much of its ground-delivery network and the Teamsters want to prevent a similar setup being established at Airborne.

Ground delivery has been the most profitable part of Airborne's business over the last year. The company returned to profitability in 2002, reporting net earnings $14.8 million on revenues of $3.34 billion, compared to a loss of $19.5 million on revenues of $3.22 billion in 2001.

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Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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