Workforce Development Agency and Port Authority respond to BAX layoffsWritten by Staff Reports | | email@example.com
DB Schenker today announced a strategic realignment in the way it will serve its North American domestic transportation customers according to a release on the company’s website. Operations will cease at Toledo Express Airport by BAX Global and DB Schenker impacting approximately 700 employees, many of which are employed part-time.
No confirmed date was reported, the company stated it would take place over the next several weeks.
It said, the “action is in response to changing marketplace conditions and along with the renewed focus on transportation management services is aimed at positioning the company for continued growth and success.”
“As a result of the prolonged recession and spiking fuel prices, more and more of our customers are opting for expedited ground-based solutions instead of domestic air freight, and they are looking for partners who can provide transportation management services rather than transactional transportation,” said Heiner Murmann, CEO of Schenker, Inc.
“We deeply regret that there will be some layoffs as part of this realignment. However, we are working to redeploy as many employees as possible to other parts of our business,” stated Murmann in the release. “Our employees represent the cornerstone of our company and we will treat all affected personnel in an open, transparent and respectful manner throughout this transition.”
The Lucas County Workforce Development Agency (LCWDA) released a statement that it is currently working to develop a strategy to assist workers who will be impacted by the recent announcement.
German-based DB Schenker, the parent company to BAX, filed WARN (Worker Adjustment and Retraining Notification Act) letters with the State of Ohio Department of Job and Family Services and Lucas County Board of Commissioners announcing the closure.
“We have been in touch with the State of Ohio regarding funding for Rapid Response for these workers,” said Eric Walker, Director of Workforce Development for the County, “and for assistance during this process.”
Workforce Development professionals, along with representatives from the state, the local one-stop system (The Source) and other partners, will attempt to meet with company officials to devise a plan to provide services to workers according to the release.
In a release from Toledo-Lucas County Port Authority, Paul L. Toth, CEO of the port said they were, “incredibly disappointed to learn that our partner for more than 20 years – BAX Global, a subsidiary of D.B Schenker Logistics (a German-based company) – will be phasing out of its U.S. dedicated air fleet and transitioning from operating its own air fleet to a non fixed-base model.”
“Toledo Express has a strong background in the global cargo market and it is the desire of the Toledo-Lucas County Port Authority to continue cargo operations absent of BAX Global. The Port Authority continues to actively pursue various activities and opportunities relative to cargo development at Toledo Express,” Toth said. “We believe the combination of the experienced existing workforce and the logistical advantages of the Toledo region and Toledo Express provide a strong framework for these activities.”
The Port Authority lease agreement with BAX Global, guaranteed by D.B. Schenker, is effective through September 2013. In the coming weeks, the Port Authority will determine the impact this will have on Port Authority operations.