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McCain Urges Anti-Trust Review of DHL-UPS Deal



07 August 2008 @ 08:52 pm ET

New York - White House hopeful Senator John McCain expressed concern on Thursday over DHL's proposal to hire United Parcel Service Inc to fly its packages nationwide, as it violates laws intended to encourage market competition.


John McCain
Representative Mike Turner, right, stands with Republican presidential candidate, Sen. John McCain, R-Ariz., as he makes a statement to reporters at the Kelly Center, Thursday, Aug. 7, 2008, in Wilmington, Ohio. McCain called for the Justice Department to launch an antitrust investigation into the proposal by DHL to move some of its freight shipping operations to UPS, which would put DHL`s Wilmington hub out of business. (AP Photo/Mary Altaffer)
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"Should this happen, DHL will cede significant elements of cost and quality to one of its chief competitors. Consumers all over America would suffer," McCain said after a private 30-minute meeting at Wilmington College, according to the Associated Press.

The Arizona senator met with employees from the three firms making up the DHL work force – DHL, ABX Air and ASTAR Air Cargo – along with officials from the City of Wilmington, Clinton County, the State of Ohio and Washington, D.C.

Should the deal go through, between 8,000 and 10,000 people stand to lose their jobs.

"I'm a strong supporter of our anti-trust laws and believe they should be vigorously enforced, but I do not prejudge its disposition," McCain said in a brief statement after the meeting.

"In the meantime, planning must proceed in the event that the transaction does go through so that the rapid response mechanisms – federal, state and local – are in place."

People in the political battleground state who could be hurt by potential job losses, reported at more than 8,000 at air shippers for DHL, if ongoing negotiations involving UPS are finalized.

McCain said he thinks that Frank Appel, the CEO of Deutsche Post, the German company that owns DHL, should come to Wilmington and explain to local people the German company's decision to reach a deal with UPS.

"I will do all I can to assist," Senator McCain said. "Job retention is my number one concern."

Outside the meeting, dozens of DHL workers sported yellow T-shirts with the message "Save Our Jobs" and "Save Our Community."

McCain also said he would seek a congressional hearing on the matter.

UPS recently said it was making progress on concluding the 10-year agreement to haul packages by air for DHL within the United States and between the United States, Canada, and Mexico. The deal was first proposed in May.

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