McCain seeks answers on UPS/DHL proposal
WILMINGTON, Ohio (Reuters) - Republican presidential candidate John McCain, concerned about potential job losses, pressed on Thursday for more information about a proposal for United Parcel Service Inc to fly packages in North America for rival DHL.
The Arizona senator met with 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 joined other senate lawmakers who earlier this week called for the Bush administration to conduct an antitrust review of any UPS/DHL agreement.
Both companies believe their proposed arrangement to cut costs at DHL and boost business at UPS would not warrant antitrust scrutiny because it is not a merger or acquisition. UPS called it a straightforward vendor relationship.
McCain said he could not guarantee "we're going to avert this," but he promised to do everything he could to fight it.
"I am deeply troubled by the specter of job losses coming to the town of Wilmington," McCain said.
He said he would write "chief decision makers" at DHL parent, Germany's Deutsche Post AG, asking them to "come here, come here to Wilmington" to explain their "reasons and rationale" for their proposal.
McCain also said he would seek a congressional hearing on the matter.
UPS said recently 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 proposed in May.
Democratic presidential candidate Barack Obama also has expressed concern.
(Reporting by Matthew Bigg with McCain in Ohio; writing by John Crawley in Washington; Editing by Andre Grenon)
