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DHL reports partnership, revenue surge amid controversy

By control on May 9, 2012

The same day that DHL Express announced a potentially lucrative partnership with the U.S Department of Commerce to boost U.S. exports, a scathing report surfaced slamming parent company Deutsche Post DHL for mistreating employees. According to the white paper, titled “Corporate Irresponsibility, Deutsche Post DHL’s Global Labour Practices Exposed,” the company has violated numerous ethical standards, including submitting workers in Colombia, Costa Rica and South Africa to lie detector tests and paying sub-par wages.

The UNI Global Union and the International Transport Workers’ Federation conducted the probe and presented their findings at DHL’s annual general meeting in Frankfurt. According to a press release issued by the trade union, “The research … shows widespread and systematic abuses regarding freedom of association and precarious work. In country after country, workers are fearful of retaliation [from DHL] if they try to organize a union.”

The report also asserted that workers subcontracted by DHL in India, Indonesia and Malaysia were paid “substantially less” than regular employees, despite doing equal work.

UNI Global Union General Secretary Philip Jennings spoke out about the alleged violations, commenting that “DHL’s global practices are a definite risk to the company’s ethics, reputation and image. This new report shows a shopping list of labor violations. DHL clearly needs to address these concerns if it is to be seen as an ethical and responsible global operator.”

In response to these claims, a DHL spokeswoman told Air Cargo World that DHL is “aware that the Global Union Federations UNI and ITF have published a white paper. Before we can make any detailed comments, we still have to analyze the content in full. However, it is evident that the majority of the cases mentioned in the white paper are outdated, have been closed or are currently dealt with within the respective national legal procedures. In many of these cases, the actual facts significantly differ from those expressed by the trade unions UNI/ITF.

“Deutsche Post DHL adheres to national law and practices,” the spokeswoman continued. “Furthermore, DP DHL is a respectful employer. In our group, we practice and promote a culture of constructive dialogue, both between employees and managers as well as between the executive management and employees' representatives. We respect human rights within our area of influence and operate our businesses in such a way as to make us an employer of choice.”

The U.S. Department of Commerce’s International Trade Administration has certainly shown its support of DHL, tasking DHL Express with helping small- and mid-size businesses expand globally. Under the new partnership, DHL’s U.S.-exporting clients will receive ITA consulting services and obtain leads from overseas contacts. The integrator’s U.S.-based customers will also benefit from market research only available only to ITA registrants, according to a press release.

“Through this new partnership, we’ll bring even more resources to bear for our customers beyond our unmatched knowledge of international shipping and industry leading global network,” Ian Clough, CEO of DHL Express U.S., said in a statement. “By introducing them to new international resources and providing valuable customized consulting services, we will help them grow even more effectively on an international scale.”

DHL is enjoying international growth, as well. In a press release, DHL revealed that group revenues for the company totaled €13.4 billion during the first quarter of 2012 — a 4.3 percent, year-over-year, surge. The integrator’s express and mail divisions performed particularly well during the first three months of 2012, with revenues rising 10 percent and 1.1 percent, year-over-year, respectively. Such increases led DHL executives to reiterate their forecast that group EBIT will hover between €2.5 billion and €2.6 billion in 2012, according to a press release.

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Comments

Submitted by Frank Squire on
Amazing information about DHL's domestic U.S. division because prior to the germans buyout of DHL, CVG international airport had been the domestic hub even prior to 1990 when i was hired not 2009 after the germans abandoned ILN Wilmington OH (the ABX facility) after a staggering 9.6 billion dollar loss directly related to the Airborne purchase. I was there to open the new sort facility in CVG, I also sat in ILN for over 9 hours waiting to be loaded on day one of the ILN sort facility, where on-time performance was non existent for 3 weeks after the initial opening day. You FAIL to mention how DHL Express, under GERMAN ownership, closed down the ILN facility leaving 8000 of the 12000 residents out of work and totally destabilizing the city and infrastructure with a cowardly move back to CVG. Quality airlift is non existent as they have opted for the cheapest labor and over 7 subcontactors to move the freight. I/WE ARE DHL, WE BUILT THE COMPANY AND HELPED MOVE IT INTO THE 21st century. Ask around what happened to DHL AIRWAYS, the real US domestic arm for DHL WORLDWIDE EXPRESS. Then again, the real story will never be printed and the misinterpretation of DHL Express will fester into the cancer it has become!

Submitted by This Guy on
A Cowardly move back to CVG?...After the operation had been consolidated into one building of that facility. Why would they continue to stay at a facility that was hemeraging money after the disaster that the integration caused in the first place? As unfortunate as the situation was for the community I hardly think that the move back to CVG was cowardly. Clearly the fees of landings and take offs and any other CVG fees was better for business than maintaining the total upkeep of the ILN facility which as you know, had been consolidated into one building. Also, "DHL's domestic U.S. division"? There is no "domestic" U.S division. It is the U.S. division.

Submitted by Annalisa on
A Cowardly move back to CVG? After the operation had been coielondatsd into one building of that facility. Why would they continue to stay at a facility that was hemeraging money after the disaster that the integration caused in the first place?As unfortunate as the situation was for the community I hardly think that the move back to CVG was cowardly. Clearly the fees of landings and take offs and any other CVG fees was better for business than maintaining the total upkeep of the ILN facility which as you know, had been coielondatsd into one building.Also, DHL's domestic U.S. division ? There is no domestic U.S division. It is the U.S. division.

Submitted by j on
great job united states using a non us company like fedex or ups for this

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