The deal is expected to cost thousands of Americans jobs. McCain aided by lobbyist Rick Davis put together the sale of Airborne Express to the European transportation conglomerate DHL Inc. In the process as many as 10,000 Ohio jobs will be eliminated and another 20,000 Ohio jobs are at risk.
DHL deal gone sour haunts McCain in Ohio
The firm may close its hub, imperiling nine county economies. A campaign aide lobbied for its parent company.
By Bob Drogin, Los Angeles Times Staff Writer
August 8, 2008
WILMINGTON, OHIO — Finally given a chance to address Sen. John McCain, Mary Houghtaling choked up Thursday and began to cry.
Wiping away her tears, she told the presumptive Republican presidential nominee how a controversial corporate deal he backed in 2003 as chairman of the Senate Commerce Committee — the sale of Airborne Express cargo service to a German conglomerate that owns DHL and the subsequent expansion of the air freight hub here — had gone horribly wrong.
Now, its business in a tailspin, DHL wants to combine operations with rival United Parcel Service and close its huge hub here. If the merger goes through, community officials and union leaders warn, staggering job losses will eviscerate the economy and the social fabric of nine struggling counties in southeast Ohio.
“Never before have so many people been abandoned at once,” said Houghtaling, who runs a local hospice. “It is inconceivable to think about losing 10,000 jobs in the first wave, and the estimates run in the 30,000 range as the wave continues.”
Houghtaling first warned McCain of the pending catastrophe July 9 when he campaigned nearby. The candidate vowed to return and bring help.
But on Wednesday, the Cleveland Plain Dealer reported that McCain’s campaign manager, Rick Davis, previously worked as a lobbyist for the German group, Deutsche Post World Net, and was paid $185,000 to help engineer the 2003 deal, plus another $405,000 for other work.
Davis helped Deutsche Post overcome objections in the Senate when the German company was negotiating the purchase, the paper reported. As head of the commerce committee, McCain fought back proposed amendments in a defense spending bill that would have barred a foreign-owned company from flying U.S. military equipment or troops. [By this action, John McCain specifically helped the merger to go through maximizing values to Davis's client.]
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