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Statement of Senator Barack Obama on the House Transportation Committee's Hearing on the Proposed DHL-UPS Deal

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Location: Washington, DC


Statement of Senator Barack Obama on the House Transportation Committee's Hearing on the Proposed DHL-UPS Deal

U.S. Senator Barack Obama today released the following statement on the House Transportation and Infrastructure Committee's hearing on the proposed DHL-UPS deal for UPS to handle DHL's air transport services. In July, Senator Obama called on the Bush Administration to carefully examine the consolidation of DHL air operations under a direct competitor, UPS, which could result in the loss of 8,000 jobs throughout Ohio:

"I commend the House Transportation and Infrastructure Committee for holding this hearing today on the implications of the proposed deal between DHL and UPS.

"This proposal threatens active competition in the market and could hurt consumers. If allowed to go forward, it would deeply disrupt the lives of the people of Ohio by eliminating some 8,000 jobs in Wilmington as well as other jobs that depend on DHL workers. And it would also abandon the infrastructure they currently use.

"While it is not a merger, I have asked the Department of Justice to examine the proposed deal because I believe that it would be bad for consumers and competition, and may violate antitrust laws. The Justice Department should oppose any deal that would significantly reduce competition and consumer choice in the marketplace for package delivery services.
"The Administration must also prepare a strong rapid response strategy in the case that this deal does go through. We must let Americans know that their government will not abandon them when so many jobs are lost.

"After everything the people of Ohio did to attract DHL's business, DHL owes it to them to try to negotiate, in good faith, an alternative structure or a new contract to save these 8,000 jobs. In the weeks ahead, I expect the Congress to show the hardworking people of Ohio and American consumers the same level of access, deference, and responsiveness that DHL received. I look forward to a similar hearing in the Senate as soon as possible.


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