07/31/2008 (1:18 am)
Pilots file suit against DHL
The Air Line Pilots Association International (ALPA) announced Tuesday it has filed a lawsuit against DHL Holdings USA on behalf of ASTAR Air Cargo Inc. pilots.
In a suit filed in the Court of Common Pleas in Clinton County, ALPA alleged that DHL breached its contract with ASTAR pilots. It also accused DHL of fraudulent inducement. DHL is owned by Deutsche Post World Net, and it operates a major sorting center in Wilmington.
DHL is in negotiations with Atlanta-based United Parcel Service Inc. (NYSE: UPS) to take over its North American air service from ASTAR Air Cargo, which was formerly DHL Airways.
The deal would also negatively affect another DHL spin-off, Air Transport Services Group (NASDAQ: ATSG) in Wilmington, which operates ABX Air and gets much of its business from DHL.
ALPA alleges DHL is in violation of certain job security assurances under ASTAR pilots’ labor agreement free credit reports.
The pilots also claim that DHL “fraudulently induced” the pilots union to drop lawsuits against the parcel company by promising job security assurances while the pilots argue the company was in discussions about switching service to UPS, according to a news release.
The pilots union has asked the court to enjoin DHL from switching service to UPS. ALPA also asks for compensatory damages and attorney’s fees.
ALPA says 10,000 pilots and other DHL employees will lose their jobs with the switch to UPS.
An after-hours message left with a DHL spokeswoman was not immediately returned. Representatives with UPS declined to comment.
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