holgerdanske.com

<<<<< JOB DESTRUCTION NEWSLETTER No. 1937 -- 11/12/2008 >>>>>

Deutsche Post's DHL, a German company, announced that it is going to cut
9,500 jobs in the United States. That's on top of another 5,400 job cuts it
already announced.

Meanwhile, in Wales and England, DHL is hiring 500 prisoners from Her
Majesty's (HM) Prison Service. To learn more about this award winning
employer go to this website:

http://www.hmprisonservice.gov.uk/

Be sure to take the virtual tour of the prison:

http://www.hmprisonservice.gov.uk/prisoninformation/howaprisonoperates/

To learn more about Her Majesty's Prison Service, go here:

http://en.wikipedia.org/wiki/Her_Majesty's_Prison_Service

Prison labor is big business in the U.K. Seven of the UK's ten prisons are
run by private companies and many of them run labor camps. An example, a
company called the GEO Group uses detained immigrants in the Campsfield
House for cheap labor. GEO Group is a worldwide prison outsourcing
operation that specializes in detaining illegal immigrants. They also run a
part of Guantánamo Bay base in Cuba.

To find out more about GEO go to these webpages:

http://www.corporatewatch.org/?lid=3133
Migrants exploited for cheap labour... even in prison

http://www.thegeogroupinc.com/

HM Prison Service is an award winner! Recently they won an excellence award
for "Best New Shared Services Organisation" on May 19th-22nd 2008 at
Barcelona, Spain (see link below). The term "Shared Services" was new to me
so I went to the Shared Services & Outsourcing Network (SSON) website to
figure out what it meant. Of course the name sort of gives it away, but
here is their description of the term:

http://www.ssonetwork.com/topic_detail.aspx?id=3154&ekfrm=6

The shared services model is a collaborative strategy in which a
subset of existing business functions are concentrated into a new,
semi-autonomous business unit that has a management structure
designed to promote efficiency, value-generation, cost savings,
and improved service for the internal customers of the parent
corporation.

That description may sound somewhat confusing, but fortunately they clarify
things later in the page:

What is Shared Services?

* Shared services creates a dynamic internal marketplace for
services
* Shared services requires an understanding that the role is
to provide a service at cost, quality and timeliness that
is competitive with alternatives, to a clearly defined group
of clients
* Shared services is not the same as "centralized functions"
-- the difference is the principle of the marketplace

Uhhhhhhhh! That makes perfect sense, NOT! I'll give you my best shot at
what "Shared Services" is: it's the new Eurospeak buzzword for
"outsourcing". As usual, Wikipedia is right on top of this trend:

http://en.wikipedia.org/wiki/Shared_services

The Private Sector has been moving towards Shared Services since
the beginning of the 1980’s. Large organizations such as the BBC,
BP, Bristol Myers Squibb, Ford, GE, HP, Pfizer, Rolls-Royce,
and SAP are operating them with great success.

Remember my last newsletter about Pfizer?

http://biz.yahoo.com/ap/081110/eu_germany_deutsche_post.html
DHL to cut 9,500 jobs and close US service centers

http://www.corporatewatch.org/?lid=3156
Packaged by HM Prison Service

http://www.ssonetwork.com/awards_previous.aspx?id=600
The 2008 Shared Services Excellence Awards were presented at Shared
Services Week on May 19th-22nd 2008 at the Melia Sitges, Barcelona, Spain.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://biz.yahoo.com/ap/081110/eu_germany_deutsche_post.html

DHL to cut 9,500 jobs and close US service centers
Monday November 10, 2:27 pm ET
By Harry R. Weber and Samantha Bomkamp, AP Business Writers
DHL to cut 9,500 jobs and close US service centers, Deutsche Post announces

ATLANTA (AP) -- In a move that could greatly scale back a possible venture
between UPS and Deutsche Post's DHL, the German company said Monday it will
significantly reduce its air and ground operations in the U.S. and cut
9,500 jobs within the country.
The DHL-UPS deal was expected to last up to 10 years and infuse
Atlanta-based UPS with up to $1 billion in annual revenue, if completed as
first proposed in May.

UPS, the world's largest shipping carrier, has said the contract with DHL,
which it has been working to finalize, would mostly involve the transport
of DHL packages between airports in North America -- not the pickup or
delivery of DHL packages to customers.

If DHL made significant cuts to its ground operations in the U.S., it
wouldn't necessarily affect UPS and DHL reaching a deal since their talks
have solely involved air delivery of packages, not ground delivery. But
Deutsche Post's announcement Monday went well beyond the elimination of
ground products within the U.S. Deutsche Post said it will discontinue U.S.
domestic-only air and ground products on Jan. 30 to focus entirely on its
international offering.

Deutsche Post, which cited heavy losses and fierce competition for its
decision to curtail U.S. operations, noted it is not pulling out of the
market entirely. It said its international shipping services to and from
the U.S. would continue.

DHL competes with rivals UPS and Memphis, Tenn.-based FedEx Corp.

UPS spokesman Norman Black said his company would continue to work on an
air-haul vendor contract with DHL. But, he added, "Today's announcement by
DHL certainly could affect the size and scope of that contract. We'll go
back into talks and see what develops."

Black cited the part of the Deutsche Post announcement in which it said it
plans to stop offering air service between U.S. cities.

"By stopping that service, the only thing that's left is moving
international packages once they get to the U.S. border," Black said.
"That's a dramatically lower amount of volume than what they were
originally talking to us about."

Currently, the company's total air volume for shipments from points between
U.S. and international destinations and between points within the U.S. is
about 1.2 million shipments a day. Deutsche Post said that figure will drop
to about 100,000 shipments a day after the changes go through. The air
volume figures do not include packages that do not start or end in the U.S.

Avondale Partners analyst Donald Broughton noted that while DHL's
announcement does not directly kill the deal with UPS, he thinks
termination will be an end result.

"I think a lot of observers, myself included, knew the largest value of
that contract (between DHL and UPS) was going to be on the first day, and
it was going to dwindle very quickly thereafter," Broughton said. "This
just accelerates that process."

Edward Jones analyst Dan Ortwerth said Deutsche Post's decision changes the
scope of a potential DHL-UPS deal, but doesn't necessarily kill it.

"I don't see any motivation for UPS to outright walk away," Ortwerth said.
"UPS is in the stronger position, and I'm sure at the bargaining table they
will protect their own interests plenty well."

Broughton said that while both UPS and FedEx stand to gain as DHL pulls
back its U.S. service offering, FedEx will likely have the upper hand in
gaining a broader share of the market in both domestic ground and air
express shipments.

The analyst notes that FedEx has a ground network roughly one-third the
size of UPS, which will allow it to grow business incrementally compared to
its chief rival if both companies share the new business equally.

And FedEx's extensive air network will allow it to more easily expand and
take more business, he said.

DHL's air and ground operations produced $3.4 billion in revenue last year.

"This a nice piece of the market for UPS and FedEx to play jump ball with,"
he said. "Overall this environment is very challenging, and this has been a
positive in a sea of negative."

But although there are major near-term advantages, Broughton said the
biggest benefits might be seen in the long run.

"The real upside might be two, three or four years down the road, when the
economy is feeling better and FedEx and UPS are able to raise prices,

because they won't have another competitor nipping at their heels," he
said.

DHL's current vendors for air shipments within the U.S., ABX Air and ASTAR
Air Cargo, have been opposed to the DHL-UPS deal, saying it would cost
thousands of jobs if it went through. Now, given the extent of Deutsche
Post's announcement, many jobs could be lost at the two companies even if
the DHL-UPS deal isn't completed.

ABX spokeswoman Beth Huber said the decision will affect ABX' work force
and operations. Just how much of an impact has yet to be determined, she
said. ABX has about 7,000 employees.

A woman who answered the phone at ASTAR's offices declined to comment or
take a message for a spokesperson, referring calls to DHL instead.

FedEx said in a statement that it welcomes the opportunity to pick up some
of the U.S. business that DHL is exiting. "Global shippers have told us
they are looking for unparalleled global reach, and FedEx is the global
leader in express transportation," FedEx said. Black said UPS over the last
several months has won the business of a number of former DHL customers. He
said UPS expects to continue to be able to do that in the future.

Deutsche Post, based in Bonn, Germany, said the new round of job cuts are
on top of another 5,400 job cuts it already announced.

The DHL Express unit currently employs some 18,000 workers. Deutsche Post
said its other operations in the U.S., including freight and global mail
and other logistics, won't be affected by its decision to close all of its
U.S. ground hubs and reduce the number of stations from 412 to 103 across
the U.S. The company said all international shipments into the U.S. will
still be delivered, while 99 percent of the outbound shipments will be
picked up.

The decision was announced as Deutsche Post said its third-quarter net
profit more than doubled to 805 million euros ($1 billion) compared with
350 million euros a year earlier. Sales rose 4.1 percent to nearly 14
billion euros ($18 billion).

Deutsche Post investors cheered the decision, sending the company's shares
up 7 percent to 10 euros ($12.90) in Frankfurt trading. In afternoon U.S.
trading, UPS shares rose $1.95, or 3.8 percent, to $53.87, while FedEx
shares rose $1.55, or 2.4 percent, to $66.13.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.corporatewatch.org/?lid=3156

Packaged by HM Prison Service

Prisoners across England and Wales will pick, pack and bag retail orders
for outside businesses after DHL and Booker won a contract to supply prison
canteens. Under the new scheme, 500 low-risk prisoners will be selected by
HM Prison Service, based on 'good behaviour record', to work in 17
workshops in prisons across the country. DHL, who manage the deliveries,
will provide training for prisoners to complete NVQ qualifications in
Warehousing and Logistics.

Monthly prison newspaper Inside Time has revealed that under the new
contract, beginning in October 2008, DHL and Booker will rationalise the
products available to prisoners to a range of 750 product lines, from tuna
tins to stamps and phone credit. The new list, down by approximately 300
items from the previous list provided by Aramark, will affect 80,000
prisoners.

According to the Prison Service Order 4460, all prisoners who participate
in "purposeful activity" must be paid. Their rate, however, is not subject
to the national minimum wage (£5.52 an hour). The average pay in UK
prisons is estimated at £9.60 per 32-hour week, or 30p an hour. There are
no figures for how many prisoners earn money in total but the prison
workforce is estimated at 10,000 people in 370 workshops.

Many big companies are known to have exploited prisoners' cheap labour to
produce their products, including Sainbury's for packing their plastic
spoons and Virgin Airways for packing their entertainment headphones.
Inside Time has recently revealed that the previous prison canteen
supplier, Aramark, used Category D prisoners at HMP Blantyre House in Kent
to pack canteen supplies for all Kent prisons. This is something that has
reportedly been happening in a number of other prisons, including HMP
Shepton Mallet in Somerset.

Some 4,000 prisoners also work for Contract Services packing and producing
goods for some 370 private customers, generating £6.1m in revenue in
2007/08. Earlier this year, the Ministry of Justice finally admitted,
following a Freedom of Information Act request lodged by the Campaign
Against Prison Slavery, that part of Contract Services' role is to produce
revenue to offset the costs of imprisonment, something the ministry seems
to have been loathe to admit previously.

Last month, Corporate Watch also reported that detainees at Campsfield
House immigration prison in Oxfordshire, which is run by Global Expertise
in Outsourcing (GEO), are being paid £5 for six-hour shifts of cleaning
and kitchen work (www.corporatewatch.org.uk/?lid=3133).

Joe Black from Campaign Against Prison Slavery (CAPS) said: "The government
and prison authorities maintain that the prison system exists not only to
protect the public and maintain civil order, but also to rehabilitate
offenders through education and training. But how can some mind-numbing
activity such as packing tap-washers into packets of four or putting
greeting cards into cellophane wrappers for up to 10 hours a day, week in
week out, ever be constituted as holding any skill-training value?"

Campaigners argue that the British government, in its efforts to build up a
prison-industrial complex based on the US model, needed to "subdue and
coerce this captive workforce into a compliant state." Part of this was
introducing the Incentives and Earned Privileges (IEP) scheme in 1995,
which encouraged "hard work and other constructive activity" by introducing
a system of privileges that are "earned by prisoners through good behaviour
and performance" and are "removed if they fail to maintain acceptable
standards." Under Rule 8, even the right to possess tobacco and to smoke is
an 'earned privilege', which can be taken away for breaking any of the
myriad prison rules listed in the Prison Discipline Manual.

The scheme, which was partly a response to prison rebellions and riots in
the 1970s and 80s that provoked a radical restructuring of the prison
control and discipline system, has also proved an essential tool in the
industrialisation of British prison labour. At the core of the scheme was
the concept of paying prisoners "to encourage and reward their constructive
participation in the regime of the establishment." Pay rates vary depending
on resources, the amount and type of work available at each prison, and the
level reached on the IEP scheme. At present, the minimum wage is £4 per
week, as it has been for the past 18 years. Prisoners willing to work but
unemployed because no work is available get £2.50 per week. Most of the
work available, by the authorities' own admission, "provides little
training, qualifications or resettlement activities for prisoners."

According to Inside Time, the Prison Service team responsible for the new
re-contracting arrangements apparently had "no choice but to continue
working independently with contractors," as supermarket chains like Tesco
and Sainsburys were "not interested" in supplying prisons - the spending of
the whole prison population is said to be equivalent to 50% of one typical
Tesco convenience store. So the new service was designed on a hub-and-spoke
model, similar to the way parcel courier services work. In the plan, ten or
twelve prisons were to be designated as distribution hubs, each responsible
for supplying a specific number of prisons (the spokes) in their particular
geographical area. Deliveries would come directly to the hub store and
prisoners would be 'employed' to pick and pack consignments for the
neighbouring prisons. A "positive element" of this was seen as the
additional "work opportunities" for prisoners in these picking and packing
units.

DHL is a Deutsche Post World Net brand and employs some 300,000 people
across the world. In 2007, the multinational generated revenues of more
than 63bn Euros (£49.8bn). Booker is the UK's largest cash-and-carry
operator, with 172 branches across the country. In June 2007, Booker
reversed into Blueheath Holding Plc to form Booker Group Plc. Their total
sales in 2007/8 were £3.1bn, with operating profits increasing to
£46.1m.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.ssonetwork.com/awards_previous.aspx?id=600

Europe
The 2008 Shared Services Excellence Awards were presented at Shared
Services Week on May 19th-22nd 2008 at the Melia Sitges, Barcelona, Spain.

Once again the great and the good of shared services gathered for the
annual gala dinner and awards ceremony - and were soon in stitches as guest
speaker Jim Lawless told how a £1 bet made with an audience member during
a motivational presentation gave him a year to retrain as a jockey - losing
three stone in the process. Jim's message - to "tame the tigers" of apathy,
fear and self-consciousness that hold back each and every one of us in our
daily lives - was conveyed through a quick-fire assault of jokes, anecdotes
and slapstick - and a fair degree of audience participation. The message
certainly got through - as more than one of the awards presenters could
testify...

At the end of Jim's hilarious performance, and with the help of a fine
backing band, the awards ceremony itself got underway, and a succession of
winners and honorary mentions came up to receive the acclaim of their
shared services peers - and, of course, the very fetching Shared Services
Excellence Awards themselves. The judges had decided upon a few surprises
as well as honouring some old favourites; by the end of the evening the
audience had greeted an array of truly worthy winners, and as the band
struck up once more it was the Kellogg's Shared Services team who took the
stage for the ultimate accolade: the award for Shared Services Organisation
of the year.

The Shared Services & Outsourcing Network would like to offer sincere
congratulations to all the winners for 2008 and, indeed, extend this to
everyone who entered, as the standards of entry this year were once again
of a very high level. Roll on 2009!

And the winners were...
Best Mature Shared Services Organisation: EDS
Honorary Mention: Procter & Gamble

Best New Shared Services Organisation: HM Prison Service
Honorary Mention: HBOS

Thought Leader of the Year: Reginald van Peteghem, Borealis
Honorary Mention: Davide Laghi, Iron Mountain

Best Process Improvement & Innovation: Borealis
Honorary Mention: EDS

Shared Services Employer of the Year: Kellogg's
Honorary Mention: British American Tobacco

Best Customer Service Delivery Framework: StatoilHydro ASA
Honorary Mention: EDS

Business Process Outsourcer of the Year: Genpact
Shared Services Organisation of the Year: Kellogg's

The Advisory Judging Panel
An objective panel of judges evaluated and scored each application. The
panel contained leading experts and practitioners in the shared services
field and judging organisations were excluded from submitting applications
for the category they were judging. Supporting sponsors helped make the
Shared Services Excellence Awards 2008 possible. In no way were they
involved in determining award criteria or decisions about award winners.
Supporting sponsors may not be on the Shared Services Excellence Award
Advisory Judging Panel. The Shared Services Excellence Awards Judging Panel
2008:

Patrick Arlequeeuw, Vice President Global Business Services, Procter &
Gamble
Lynda Atherton-Miles, Director, Cummins Business Services Europe
Carl Barnes, Head of Country Accounting Centres (CAC) UK & Ireland, DHL
Dan Foley, Head of Shared Service Centre, Marks Spencer
John Gregory, Director of European Shared Services, Kellogg's
Robert Horvath, Global Head of Shared Services, Vodafone
Sameer Jalundhwala, formerly Head of Global SSC Development, Orange
Business Services
Fraser Kirk, Programme Director, Coca Cola
Phil Searle, formerly International CFO, Cendant Travel Distribution
Services

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