McCain’s Two Step - Unemployment Consequences In Ohio
McCain Tied to Job-Killing Ohio Merger
2003 Airborne Acquisition Jump-Started DHL to No. 3 U.S. Position
DHL suddenly became a substantive player in the $50.2-billion U.S. air- and ground-parcel-delivery market.
The company bought Seattle-based Airborne Express for $1.05 billion in April of 2003.
The merger provided U.S. customers with a strong alternative to Federal Express and United Parcel Service, the American market’s Big Two.
Airborne Buy Created Redundant Hubs
The 2002 Ohio hub consolidation was be the expansion plan’s largest job generator.
DHL owns the Wilmington Air Park, which it acquired when it bought Airborne Express. Airborne had purchased Clinton County Air Force Base in 1980, 
following the U.S. Department of Defense’s decision to close the facility in 1971. That buy created the largest privately owned airport in the U.S. Subsequently, Airborne converted the base, making it the centerpiece in its hub-and-spoke U.S. distribution system. DHL’s merger scenario created an obvious operational inefficiency. The company had two major hubs only about 50 miles (80 kilometers) apart.
A bidding war ensued between Ohio and Kentucky . DHL had to consider which hub to close for over a year. Both Kentucky Gov. Ernie Fletcher (R) and Ohio Gov. Bob Taft (R) got personally involved in trying to convince the company to consolidate within their states.
- Kentucky offered $41 million in incentives in 2002.
- Ohio countered with an incentive package that was valued at more than $422 million. State subsidies include $300 million in tax-exempt bonds. Those state-backed bonds allow DHL to secure lower-than-normal interest rates.
DHL’s Kentucky operation, 300 full-time workers, to remain at the site, will serve as a “back-up hub,” 800 part-time positions will be eliminated through attrition over the following months.
DHL’s U.S. push comes as parent Deutsche Post AG is in the midst of a reorganization. The reshuffling comes as Europe’s largest postal service is preparing for the loss of its German mail monopoly at the end of 2007.
Shedding jobs is another part of the reorganization. Deutsche Post announced on June 24th that it will cut about 1,600 current positions of its German logistical units into DHL’s courier division. Those jobs are being eliminated because of consolidation-created role duplications, Deutsche Post officials said. The cutbacks will be the German company’s first in 10 years.
Wilmington air park a symbol of what’s at stake in 2008 presidential election
DHL deal gone sour haunts McCain in Ohio
McCain says he’ll try to save jobs in Wilmington
McCain calls for DHL investigation
This truly looks like McCain is trying to patch a wound he helped create. This is what happens when there is disconnect between cause and effect. Call these consequences! The whole lesson of the Bush Administration is that consequences follow actions. Politicians that fail to hold themselves accountable for their actions, votes, or endorsements are NOT representatives of THE PEOPLE. This country was founded on the principle that it’s elected officials actually represent the will and/or welfare of THE PEOPLE. People are the components of CORPORATIONS, from the bottom to the top. Bowing to the will of corporations does not always reach the people components. In fact, it appears that the people components are the most expendable part of a corporation … Perhaps McCain has a conscience after all. He sees the consequences of his actions and wants to make repairs, because it’s election year? He is Republican, he bought the Bush attitude, and he is pandering.
With Democrats and labor groups blaming McCain and his campaign manager Rick Davis for their role in the threat to local jobs, McCain moved to demonstrate his concern about possible job losses in this critical swing state that gave President Bush the electoral votes needed for re-election in 2004.
The Republican presidential candidate called on the Justice Department to begin an antitrust investigation into DHL’s plans to puts its packages aboard the planes of a rival, United Parcel Service, before delivering them in DHL trucks. Because UPS flies out of Louisville, Ky., the plans call for shutting the DHL shipping hub here that uses the Wilmington airport and eliminating up to 10,000 jobs.
10,000 unemployed PEOPLE, their families, their homes, and the taxes they pay are nothing to sneeze at. Today the unemployment rate is the highest in SIX years. 
Aug. 7 (Bloomberg) — The number of Americans filing first- time claims for unemployment benefits unexpectedly rose last week to the highest level in six years, signaling the labor market continues to weaken.
This, of course, does not include those who have run their benefits out and continues to live with friends and family while hitting the pavement for whatever work they can find. “You are overqualified”, appears to be the most frequent excuse given to middle aged white collar workers who are new at the job search game. They cannot admit that “you are too old”, so they must supply creative rejections. There are too many that have just fallen off the labor department radar … they have no resources, family can’t afford them anymore, they’ve lost their car, or live in their car, home and self-esteem. These numbers, conveniently, are not included in most government statistics. They scavenge while applying for Social Security. This is so reminiscent of the Great Depression, it’s depressing.
