DHL Freight UK in trouble

DHL Freight UK has begun a consultation period with its employees over the need to ‘make fundamental changes’ in order to address the lack of profit in its operations.

In a statement communicated to employees on 8 December, the company said: “Part of these changes could involve synergies with DHL Supply Chain, and it is proposed to realign and integrate some of our current service offerings to mitigate further financial losses and leverage support from the wider DPDHL Group.

“The services which we believe would be compatible with the Supply Chain business include Gerlach, Euroline, BMW and Euro Connect and the potential transfer of some domestic customers. However, further assessment on the viability of this proposal will need to be considered and shall form, together with the remaining proposals, part of the collective consultation process.

“Unfortunately, we do not believe that these synergies extend to domestic Terminal Based Operations and associated overheads. Therefore, we are proposing changes which involve a restructuring of the UK Business, in particular, ceasing to operate unprofitable service offerings. In addition, there may also be some proposed outsourcing of services/products to external parties.”

In a news item published on its website the GMB union (which represents a number of DHL Freight UK staff) claimed: “The proposed move could lead to the loss of 520 jobs, and the closure of its depots at Aberdeen, Bellshill, Newcastle, Warrington, Wakefield, Coalville, Norwich, Andover, Bristol, and Exeter sites.”

In its statement to employees, however, DHL Freight UK said that “no decisions have been taken at this stage”, adding that the aim of the consultation process is to consider employees’ views “in order to reach agreement on the business proposals”.
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