Members of the International Brotherhood of Teamsters have approved the final rider included in a collective bargaining agreement with DHL Express that covers about 2,000 workers employed nationwide by the logistics company, the union announced Oct. 11.

IBT said approval of the rider paves the way for implementation of a national master agreement between DHL and the Teamsters that retroactively takes effect in April 2013 and expires in March 2017. Operational changes contained in the tentative contract likely will be implemented in the next few weeks, the union added.

DHL officials did not respond to Bloomberg BNA requests Oct. 16 for comment. The Teamsters also declined to comment, but highlights of the tentative 2013-2017 National Master DHL Agreement are posted on its website.

The agreement calls for a $1,250 lump-sum payment immediately “in lieu of a wage increase this year” to most DHL employees covered by the contract, the union said. It also calls for general wage increases from April 2014 to October 2016 for full-time and part-time eligible employees.

Extended Contract Negotiations

DHL and the Teamsters agreed earlier this year to extend their collective bargaining agreement 30 days past the March 31 expiration date while contract negotiations continued. There were subsequent extensions as negotiations proceeded.

The union, which has about 1.4 million members in the U.S., Canada and Puerto Rico, announced Sept. 11 that the national master portion of the agreement, which contains the economic package, was approved by more than 70 percent of IBT members eligible to vote on the proposals.

The Teamsters said all three national operational supplements to the master agreement, covering employees who hold pickup and delivery, office/clerical, and gateway positions involving DHL workers at airline hubs, were approved earlier this year. Supplements covering IBT members who hold regional pickup and delivery jobs at DHL also were approved previously.

Bonus and Wage Increases

For DHL employees covered by the pickup and delivery and office/clerical agreements, the tentative contract calls for the $1,250 lump-sum payment within 30 days of the date the contract is ratified. The Teamsters said active full-time and part-time workers as of the date of ratification and employees on an approved leave of absence would receive the lump-sum payment for 2013 retroactively, as well as prospective wage increases.

“Laid-off employees on the seniority list who have worked at least 500 hours in 2013 prior to the date of ratification will also receive a $1,250 lump sum payment,” the union said.
Under the terms of the agreement, the Teamsters said full-time employees would receive: a $1.00 per hour wage increase effective April 1, 2014; a $0.60 per hour increase effective April 1, 2015; a $0.35 per hour increase effective April 1, 2016; and a $0.25 per hour increase Oct. 1, 2016.

The union said part-time employees would receive a $0.50 per hour wage increase effective April 1, 2014; a $0.30 per hour increase effective April 1, 2015; and a $0.30 per hour increase effective April 1, 2016.

This reflects “[s]ignificant increases” for part-time workers, whether they are new hires or current employees, the Teamsters said. The union said the new-hire progression rate has been shortened by 25 percent, to 36 months.

“Those workers already in progression will benefit from both higher rates and a quicker progression,” IBT said.

‘Strong Neutrality Agreement.'

In addition, the Teamsters said the contract includes “a strong neutrality agreement” that will make it easier for them to organize nonrepresented workers within DHL operations.
New language in the contract about the neutrality agreement says: “The parties agree that a constructive bargaining relationship is essential to efficient operations and sound employee relations. The parties recognize that organizational campaigns could have the potential to disrupt an otherwise mutually beneficial collective bargaining relationship.

Consequently, should any affiliate of the IBT attempt to organize a non-covered operation of the employer (in any appropriate bargaining unit), the Employer shall remain neutral and not engage in, sponsor, or support any anti-union or ‘vote-no' activities. Additionally, the parties will not engage in any personal attacks against Union or Company representatives or defame the Union or Company as institutions as a part of any such organizing campaign.”

Curbing Excessive Overtime

The Teamsters also said it secured for employees covered by the contract an hourly rate of double time for all hours worked over 12 per day.

“This should help address excessive overtime for drivers and limit the potential abuse of overworking 10-hour employees where they exist,” the Teamsters said.

In addition, the union said the agreement limits DHL's ability to require employees receiving workers' compensation benefits to continually take part in “modified/light duty work.” Such modified duty would be limited to a total of 12 weeks under the contract, IBT said, as opposed to being unlimited under the current contract.

The Teamsters said the contract also requires DHL to participate in the same health, welfare and pension funds it participated in under the previous contract. “To maintain current benefits, the employer has agreed to increase its contribution to all Teamster health, welfare and pension plans up to $1.00 per hour per year,” the union said.

Defeating Take-Aways

IBT said it was able to defeat DHL's use of part-time employees for 30 percent of daily work, “including straight time weekend pickup and delivery work.”

The Teamsters said it also defeated modifications to DHL's grievance procedure and “the elimination of restrictions on a laid-off employee's right to bid on new or part-time work.”

The union applauded the continued inclusion in the agreement of a DHL cost-of-living adjustment clause that protects workers against “the harmful effects of inflation in 2014 and beyond.”

The Teamsters said DHL also agreed to continue paying 100 percent of the cost to hire an arbitrator to resolve disputes.

The agreement also “preserves a significant degree of regional and local autonomy” for the local unions and members they represent, IBT said.

In addition, the Teamsters said the contract “eliminates the contractual language that allowed the company to take disciplinary action against any employee who has had his or her wages garnished.”

DHL Express officially opened the $46 million expansion of its U.S. air hub here in an effort to build market share and sustain double-digit package and express volume growth.

“This is a major step forward for us,” said Ian Clough, CEO of DHL Express U.S., speaking on June 13 at DHL’s facility at Cincinnati/Northern Kentucky International Airport. “The U.S. is a significant part of our global market. This will position us for growth for the next five years.”

U.S. volume growth was 11% last year over 2011, after an 18% jump the previous year, DHL said.

In the four years since DHL located its hub in the Cincinnati area, the Germany-based postal, freight, express and logistics operator has spent more than $100 million to create a location that handles about 125,000 packages daily. With the expansion, capacity is 240,000 packages a day.

The ceremony included a ribbon- cutting by Deutsche Post DHL CEO Frank Appel and Kentucky Gov. Steve Beshear, as well as tours of the new 180,000-square-foot sorting facility, which has the capacity to handle at least 10% annual express shipment growth for the next five years.

“We have grown the business very successfully,” Appel said. “We definitely expect this expansion will help us to grow the business incrementally. We have gained market share from UPS and FedEx.”

DHL’s U.S. presence is focused on Cincinnati as its hub airport, where nearly 40% of its 5,500 U.S. employees work.

DHL exited the U.S. domestic package business in 2009, ending a five-year experiment that cost the company close to $10 billion and forced it to trim more than 9,000 jobs. Its U.S. air hub at Wilmington, Ohio, was relocated to Cincinnati as the company kept its international service to and from the United States.

Clough told TT the express unit expansion would not make any changes in DHL’s ground freight operations, other than handling more packages and freight. The company uses its own delivery fleet, except in remote areas, where it deploys contractors.

Growth in the United States has been fueled by growing trade with Australia and selected European markets, such as Germany, and includes products such as auto parts, electronics and e-commerce, Clough said.

The U.S. market accounts for about 50% of DHL Express revenue in the Americas, Clough said. In the first quarter, DHL revenue in North and South America was about $700 million, or 16% of total DHL Express revenue.

Also last week, DHL announced a temperature-controlled airfreight service called Thermonet, which targets health care and related industries and has 24-hour monitoring. The new offering will be part of DHL’s existing service to that market.

DHL’s largest holding in the United States is Exel, Westerville, Ohio, the logistics operator that ranks No. 1 on the Transport Topics Top 50 companies in that sector.

Total Deutsche Post corporate revenue in the first quarter was $17 billion, including nearly $5 billion from the postal operation. By comparison, UPS Inc., which ranks No. 1 on the TT Top 100 list of for-hire carriers, had first-quarter revenue of $13.4 billion.

However, UPS’ operating profit outpaced Deutsche Post’s performance, with operating income of $1.58 billion at the U.S. company, compared with 711 million euros, or $925 million, at Deutsche Post.

DHL is the world's largest courier company and one of the largest employers, with well over 470,000 workers. 

It's owned by Deutsche Post, the privatized former German postal service.  

As you can imagine, the company in Germany recognizes trade unions and bargains with them.  

Many would consider them to be a good employer and DHL is very proud of its "corporate responsibility" record.  

On their website, they say "we promote a corporate culture based on dialogue."

But not in Turkey.

There, members of the transport workers union Tumtis tried to organize DHL workers -- but the company has sacked 24 of them.  

Those workers are now standing outside the company warehouses, resisting the unfair dismissals, demanding their right to join and form trade unions.

Local DHL managers have told other employees that unless they quit the union, they will lose their jobs.

The International Transport Workers Federation, representing over 4.5 million members in 153 countries has called for world-wide solidarity with the DHL workers in Turkey.

They've launched an online campaign on LabourStart to call on DHL to engage in exactly the kind of dialogue they claim is part of their corporate culture.

It's important to tell companies like DHL that it's not enough to treat workers with respect in countries that already have powerful unions.  

The right to join and form unions is universal -- and DHL must respect it even in Turkey.

Those workers standing outside the warehouses of DHL need our support today.  

It will take you only a minute to send off your message - please do so now.

And please help us mobilize thousands of others - forward on this message to your friends, family, co-workers and your fellow union members.

Germany's KfW KFW.UL has approached investment banks about the sale of at least part of its stake in Deutsche Post DHL (DPWGn.DE), which has a market value of 4.9 billion euros ($6.2 billion), three people familiar with the process said.

The state-controlled development bank "is sounding out the market," an investment banker familiar with the deal told Reuters on Friday, while another of the people said: "Asian investors would make sense from a strategic point of view."

KfW has contacted investment banks this week about the possible sale, the sources said, adding no bank has been formally mandated yet.

Deutsche Post, KfW and Germany's finance ministry declined to comment.

Deutsche Post generates about 14 percent of annual sales in Asia and its DHL business is market leader in the express delivery market there, ahead of U.S. rivals FedEx (FDX.N) and United Parcel Service (UPS.N).

Germany holds 30.5 percent, or 368 million shares, in Deutsche Post, Europe's biggest express delivery and mail company, via KfW.

Of that, about 54 million shares - worth about 720 million euros - are locked up in a convertible bond that was issued by KfW in 2009 and matures on July 31, 2014.

One person said the German government had not yet decided whether to sell a stake in Deutsche Post and would only do so if it could fetch a higher price than the value at which the stake is held in KfW's books.

Shares in Deutsche Post have gained almost 50 percent since reaching a low of 8.90 euros in September. But they still trade more than a third below the 21 euros at which the stock was issued when Deutsche Post floated in 2000.

STATE HOLDINGS

Germany's economy ministry said late last year it would examine the possibility of exiting its holdings in Deutsche Post as well as former state monopoly Deutsche Telekom (DTEGn.DE), of which it owns about 17 percent via KfW.

Financial sources said the German government had no plans to fully exit its holding in Deutsche Telekom at the moment.

Germany, which also owns a 25 percent stake in the country's second-biggest bank Commerzbank (CBKG.DE), had targeted billions of euros of proceeds from privatizations this year.

The FDP, the junior partners in Chancellor Angela Merkel's centre-right coalition, in particular campaign for "private before state", and the government as a whole is keen to consolidate public finances amid the euro zone's sovereign debt crisis.

So far, Berlin has begun the privatization of real estate companies TLG Immobilien and its subsidiary TLG Wohnen.

Deutsche Post has also previously signaled that further privatization steps would be welcome. It has been rumored to be considering a secondary stock market listing in Asia, but its finance chief Larry Rosen said last month there were no current plans for such a move.

But any large deal could leave Deutsche Post without an anchor investor to prevent a breakup of its mail and DHL businesses, after Dutch rival TNT was forced to dismantle itself.

TNT was the first European mail operator to be privatized in 1989. Last year, it was split into mail business PostNL (PTNL.AS) and express company TNT Express (TNTE.AS), which was bought by UPS this year.

One way to avoid a carve-up would be to sell a stake to a strong long-term investor such as a sovereign wealth fund, limiting the number of shares freely traded on the market.

March 16, 2012: DHL Express said it will spend $47 million to upgrade its U.S. package express and cargo sorting facility and capability at the Cincinnati area airport.

The expansion, announced Wednesday, will consist of a new 193,000 square foot facility to handle packages and cargo, which is expected to create about 280 new jobs. The new facility is expected to be open in November.

Click here to read more at Transport Topics.

November 13, 2009: Membership outrage over proposed mid-contract concessions at DHL led to it being shelved by the national meeting of local officials.

International Rep Brad Slawson tried to sell it, but Teamsters weren’t buying, and local officers said so at today’s Chicago meeting where it was presented to officers.

As reported here ten days ago, DHL Teamsters launched a campaign to oppose the changes to the contract, which were a DHL move to eliminate good fulltime union jobs and reposition the company with reduced labor costs. Under the national contract, DHL cannot use part-time drivers until they have recalled all Teamsters on lay off.

Under the proposed deal, half of the full-time DHL Teamsters currently working would have been offered $75,000 to sever ties with the company while other seniority Teamsters would be offered $25,000. Then 75% of the remaining currently working active seniority list would be guaranteed 40 hours per week at full pay rate.

The company would then be able to expand the use of part-timers, who start at $12 per hour on the dock and $14 for driving.

Congratulations to DHL Teamsters for their stand, and to local officers who represented their members by saying no to the Hoffa administration’s plan.

DHL, the largest express carrier in Europe and much of the world, eliminated its domestic US operations and operates in the US only as an International carrier.

November 3, 2009: DHL Teamsters will soon be voting on a management-proposed mid-contract change which would include buy outs of Teamster to allow the hiring of low-wage drivers and dock workers.

Half of the full-time DHL Teamsters currently working would be offered $75,000 to sever ties with the company while other seniority Teamsters would be offered $25,000. Then 75% of the remaining currently working active seniority list would be guaranteed 40 hours per week at full pay rate.

The company would then be able to expand the use of part-timers, who start at $12 per hour on the dock and $14 for driving.

At this point no proposal in writing has been put to the members. Teamsters have a right to vote on any proposed contract change.

Click here for a copy of a management memo explaining the proposed deal.

Concerned DHL Teamsters have launched a campaign to oppose the changes to the contract. They see the re-opener as a DHL effort to eliminate good fulltime union jobs and reposition the company with reduced labor costs. Under the national contract, DHL cannot use part-time drivers until they have recalled all Teamsters on lay off.

Teamster activists at DHL plan to pressure the IBT and their local officers to oppose the buy outs and other concessions. Petitions are circulating opposing any changes to the contract.

November 2, 2009: DHL Teamsters report that IBT officials have met with management over proposed contract changes that would include buy outs of Teamster to allow the hiring of low-wage drivers and dock workers.

Reportedly, DHL Teamsters currently working would be offered $75,000 to sever ties with the company while those remaining on lay off status would be offered $25,000. 75 percent of the remaining currently working active seniority list would be “red circled” and guaranteed 40 hours per week at full pay rate. The remaining 25 percent would drop down to part time status at $12 - $14 hour.

At this point no proposal in writing has been put to the members. Teamsters have a right to vote on any proposed contract change.

Concerned DHL Teamsters have launched a campaign to oppose the changes to the contract. They see the re-opener as a DHL effort to eliminate good fulltime union jobs and reposition the company with reduced labor costs. Under the national contract, DHL cannot use part-time drivers until they have recalled all Teamsters on lay off.

As the economy recovers, DHL—which is the largest express carrier in Europe and in much of the world—may seek to expand into the U.S. domestic market with labor costs well below that of UPS or even of nonunion FedEx.

Teamster activists at DHL plan to pressure the IBT and their local officers to oppose the buy outs and other concessions. Petitions are circulating opposing any changes to the contract.

November 25, 2008: On Nov. 18, DHL presented the IBT with a change of operations proposal that will severely reduce Teamster jobs covered under the recently ratified national contract.

The company estimates that 420 to 550 Teamster jobs will remain under the DHL agreement, which is a loss of over 90 percent. The proposal will be heard in Sarasota, Fla. on Dec. 1-2.

The proposal includes a severance package that would provide up to 11 weeks wages and continue health coverage for 3 months, following acceptance of the offer for those who accept the buy out and quit their job.

Click here to view the proposed change of operations.

To discuss the proposed change, you can visit www.dhlteamsterforum.com.

November 21, 2008: Local 705 members rallied at the Federal Building in Chicago to demand fairness for laid-off DHL Teamsters.

ABC News was there to cover the rally of Teamster members, Chicago Aldermen and other community supporters to pressure DHL to stop its discriminatory treatment of union workers.

Following the rally, the crowd marched to the National Labor Relations Board where a Teamster delegation filed charges against the company. The charges accuse DHL of diverting Teamster work to a nonunion alter-ego corporation DHL Sky Courier.

Last week, DHL announced that it has decided to pull out of the domestic overnight and ground business. They will continue to focus on International only.

DHL has given all nonunion employees either a severance or retention package and has offered nothing to union members.

Nationwide, DHL is reducing the number of stations from 412 to 103. This will eliminate 9,500 U.S. jobs at DHL on top of the approximately 6,500 that have already been lost.

“The time is now for DHL to come to the table and bargain in good faith some type of severance or exit package for the workers who built this brand name of DHL”, Local 705 Principal Officer Steve Pocztowski said in a press statement.

Watch rally coverage by ABC News: