ABX Air, DHL reach agreement on severance packages

Source: Supply Chain Digital

Date :8/20/2008 6:01:28 AM

ABX Air Inc said yesterday, August 19, that it has reached agreement with DHL on severance packages for workers being laid off as a result of the logistics company’s restructuring.

The restructuring of DHL’s US Operations was announced on May 28.

ABX said it would be notifying about 200 workers next week that their positions will be terminated within 60 days.

The initial job losses are a result of DHL's decision to retire 23 DC-9s this year, the first associated with its restructuring plan, ABX said in a statement.

DHL has indicated that the DC-9 reductions will continue until all ABX DC-9s are parked sometime in 2009, it said. Additional job cuts are expected as more planes are retired, ABX said.

Full and part-time workers will be eligible for severance options, including continued health and welfare benefits, the company added.

"We saw this day coming when we heard the news from DHL on May 28," said John Graber, ABX's President.

Frank Appel, CEO of DHL's German parent company Deutsche Post, said that the decision is irreversible because of a need to reduce more than US$1 billion in annual losses from DHL's US package delivery business.