Economic Storm Batters Ohio Town

60 Minutes' Scott Pelley Reports From An American Town In The Path Of An Economic Storm

(CBS)  When President Obama spoke of "the winter of our hardship" in his inaugural address, no one in America understood that better than the folks 60 Minutes met in Wilmington, Ohio. They're people in the grip of a brutal series of layoffs at DHL, the shipping company. Their experience was part of the news this past week that new claims for unemployment benefits are the highest in 26 years.

Since the economic crash of 2008, taxpayers have committed to more than $1 trillion in various bailouts of Wall Street. But not much of that is reaching families in crisis. On kitchen tables, headlines from Washington and New York lie beside unpaid tuition bills and foreclosure notices. After all the speeches and parties of Inauguration Day, what were the families in Wilmington asking?

"Are we going to lose our home? Are we going to be able to pay our property taxes? What are we gonna do for insurance? What are we gonna do for food? You know, and these are questions that you'd never think that we'd ask yourself. And now they're discussions in the home," says Mike O'Machearley, who is losing the job that helped support four children and a grandson.

"They always say that God closes a door, he opens another one. And we have faith that he will," he adds.

Faith is what sustains Wilmington now. Settled by Quakers 200 years ago, it's a community with such an all-American look that it seems like a movie set. About 12,000 people live there. And many, like O'Machearley, work in the last industry you'd expect in a laid back town.

In 1980, Airborne Express turned Wilmington's abandoned Air Force base into a hub for overnight shipping. Eight thousand people found work at what they call "the air park." Then, in 2003 a German company, DHL, bought Airborne in an effort to win a big piece of the U.S. market. It didn't work. The merger was rocky, there were service disruptions, and customers left in droves. With last fall's economic crash, DHL was losing $6 million a day in the U.S.; layoffs started coming by the hundreds.

People who worked there for decades found themselves in DHL-sponsored meetings learning about unemployment.

"We could tell you what we did on a daily basis, but you wouldn't believe it. You know, boxes in a big container, and it'll weigh 800 pounds, you push it out the door through eight inches of snow, and push it up on a barge, and we were idiots enough that we did it by ourselves. We worked as a team, and we had a good friend right along side of us," Keith Rider tells correspondent Scott Pelley.

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Clarification: On Jan. 30, DHL Express ended its point-to-point shipping within the United States. Two other DHL brands-DHL Global Forwarding and DHL Global Mail-continue their U.S. domestic operations.

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"You're losin' a lot more than a job," Pelley remarks.

"Our friends. It's crazy. You'll never understand it. But we loved it," Rider says.

"I remember people with scarves breathin' through ice in just unreal…eyelashes frozen and I started in '81. And when you worked, you worked. Why weren't we bailed out?" Morris Deufemia asks.

DHL is spending $260 million on severance pay and health insurance that will keep many workers going for several months. But there is a feeling in town that the German company wrecked a successful American business and wiped out thousands of jobs.

"I was educated here, Wilmington city schools and then at Wilmington College," says Mayor David Raizk, who has been getting layoff notices for months.

By federal law, companies have to notify local government when layoffs are coming. Raizk is getting a new letter from DHL every week or so, adding a few hundred at a time to the growing list of lost jobs.

"It's got classifications and numbers on it, but there's not names, addresses and who their wife and their family and children are. So you look at these and at the end of the day, you think that's 800 and some people, folks, live here, work here, you know," Raizk says.

The mayor told 60 Minutes one out of three households has a family member working at the air park.

Angela and John Pica are raising four children on two air park salaries. Angela started at Airborne Express when she was 19. Now, as a supervisor, she walks laid off workers to the company gate and takes their ID badges away.

"Today, I escorted five individuals out today. Last week, I think I escorted three," she tells Pelley.

Asked what the last thing is she says to them, Pica says, "I tell them that I wish them the best. And it has been a pleasure, working with every one of them, because they're a great bunch of people. And they deserve so much better than this."

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Did you know…

Wilmington Air Park in Wilmington, Ohio, is the largest privately owned airport with a Category 3 radar in the United States at approximately 2,200-acres. Clinton County's largest employer is the Air Park.

According to the Economic Task Force for the DHL hub convened by Lt. Gov. Lee Fisher and Mayor David Raizk of the city of Wilmington, the projected economic impact of the job losses will exceed $400 million annually.

[TRABJA]

It is very unfortunate that Wilmington has lost so many jobs. It is very hard for people when there is loss of income. Unfortunately instead of meeting problems head on, the man in the white house has caused all of this hatred -- one American against another. This is not President Bush's fault. Why are we shooting down corporations and CEO's? It is a sum total of many factors that have caused us so much job loss. The white house, the media who are in the tank for the white house can spin all they want, but it is America and Americans that are suffering. Work together. Unite together. Do NOT fight each other. I agree UNITED WE STAND, DIVIDED WE FALL. I did not vote for job loss did you? I voted for what is good and right in America. Come on and let's build in our communities together. WE can DO THIS WILMINGTON and OHIOANS. God Bless America.

[hisangel11]

I also know the Thomas family, and know that there son got scholarships for his first year of school. After that he had to pay out of pocket and could not afford to send him. It is not because he hates school he is planing on going back as soon as he saves up enough money. Maybe people should look more into what they wirte or actully know the facts instead of just shooting off thier mouth cause they are mad!

[cntrygal05]

I know the thomas family and i can tell you they did not pay for her sons school the government did he and he dropped out because he didn't want to go and he hated it! Unbelievable! I think that she shouldn't have said that because its not true and it aggravates me because i couldn't get help and i work full time and go to school full time. I love school and he got it for free and dropped out. I think they should look into there stories more before reporting them!

[jetranger7]

Well with Idiots like that Bohmer in office, what do they expect ??? He was right beside Bush all the way and often very cozy with him,, get rid of that Bohmer and thats the 1st start to turning ohios troubles around, Bohmer is part of the problem, he needs to go- immediately !!!!!

[former_one]

What good would a donation of a part of the airpark be if Wilmington has no capital to run it? Where will you get customers? It''s not like nearby Sabina Industries is currently making car parts for shipment. You''ll have to find a new way to produce goods or provide services. The town is a great place to live. There are a lot of nice one-story homes in some of the housing developments. Sell those homes to folks from neighboring cities who just want a nice quiet town to retire. You need a public transportation system more than anything. Ask for that instead of that money-sucking air park. Attract folks with retirement checks to live in the town. Then provide services like cleaning, laundry, lawn care, automotives, medical services, and entertainment. The town needs money, and people with pensions have it. The best asset of the town is the wholesome living. You have a good hospital, senior center, and independent and assisted living facilities. Captilize on that. It will be tough, but no tougher than the plight of the county farmers who had to moonlight to pump capital into their farms during the 1960''s and 70''s. It has nothing to do with democrat, republican, or other issues. It''s about economy and capital. You just have to market the best features of the town. Sorry you are all out of work. Hope you are back on your feet soon.

[lookinin1]

My heart goes out to all those loosing their jobs at the airpark AND surrounding business'''' affected by the closing of the air park.

I really like the attitude of Mike, the guy making the knives. He knows what it takes to make it and I am sure he will do great!!!

I feel the problem at DHL comes down to "poor management" period!!! Shame on you high paid CEO''''s for taking advantage of the very people that were making your paycheck!!!!
And as for people being upset about having to pull thier child out of college....What are you thinking anyway???!!! If a "child" over 18 is attending college because his/her parents are paying for it all, what are they learning? Maybe they need to consider a job and paying for their own tuition?!! Especially, if mom and dad are loosing their job! I would think those folks have much more to be concerned with than having to stop paying for thier kid to go to college!! Soo many people live beyond thier means and expect a handout! It is shamefull! The old attitude of giving our children more than we had has gotten clear out of control. What happen to "working for what you have"!

It isn''''t just Wilmington! It''''s everywhere! It could be much worse! These hard times should be a wake up call to all of us, to look for small miracles, see things in a positive light, and do your part!

[lookinin1]

I can''t even believe we have someone trying to turn this into a racist thing! This story has absolutely nothing to do with racism! Maybe your hiding behind your color as a way not to work!!! IF your talking about it, your likely doing it! Get a job and quit hiding behind your color. It is the white man/woman that is the minority these days, but the white person can''t as easily claim, "oh, it''s because of my color"!!!

[chriswalls09]

OH MY LORD!!!We just elected a black president and your still talking about equality????? I will be laughing about this for the next week! to compare this loss of jobs to the sufferring of the african american community is just a little extreme and moronic. I guarantee what little racism is left is not much in wilmington. I dont know to many folks here , black or white that look at oneanother as a color. but, Apparently you do. this election should have proven that color isnt an issue. let it go already. and on a personal note , my best friend just happens to be what you would call african american, and its funny cause niether him nor his parents nor his grandparents have EVER seen africa. my great grandad and grandmother is from eroupe yet I have no desire or reason to call myself eroupean american.
we that are born in this country are AMERICAN regardless of our skin pigmentation. lol sorry this just cracks me up. i''m not trying to be rude nor say that any certain race hasnt suffered due to ignorance of others . suffering is suffering and when that happens we should ALL show compassion and be willing to lend a hand. Not blame other AMERICANS.

[trichar2]

This is something the African American community has suffered from for over 200 years. Yet we are blamed for our own unemployment, inability to afford health insurance and college and lack of economic opportunity. Even in the best of times our unemployment rate in large cities is much higher than what the rest of the country suffers from in the the worst of times. It only appears to be a concern when white America loses or is unable to find a job. Welcome to our world.

[carlottalein]

It is always a hardship to lose your job, but it''s easier to sympathize with people who saw through Bush back in 2000...plenty of us did, and we have been able to feel the hope of Obama, where the jobless still don''t get it....it is payback time.

[chriswalls09]

i just found the website for sugartree someone had emailed me from these posts asking for it. for some reason i thought it was a .com anyway, for those of you who are interested it is www.sugartree.org
these folks are the real deal when it comes to a place that really cares. i,m sure there food pantry could use some help right now.

[truthword1]

This is Allen the director of Sugartree ministry. I just wanted to personally thank 60 minutes for their story and their professional work in our community and at our ministry. You were very encouraging and treated our staff and clients with much kindness. Please keep our community in your prayers, we will make it. This is a great community with a lot of faith. God bless each of you for your care.
allen
sugartree ministry

[jessabel28]

As a registered Democrat and ABX employee, I''m more than a little angered by the liberal response to this piece. Who cares who voted for who? People all over the country are losing their jobs, and often their houses, through no fault of their own. How any American can sit by and seem to gleefully celebrate the misfortunes of other Americans is beyond me.
If there was ever a time for finger-pointing, that time has passed. We are all on the same team, here, no matter what state you live in or who you voted for. E Pluribus Unim, no?

[jessabel28]

As a registered Democrat and ABX employee, I''m more than a little angered by the liberal response to this piece. Who cares who voted for who? People all over the country are losing their jobs, and often their houses, through no fault of their own. How any American can sit by and seem to gleefully celebrate the misfortunes of other Americans is beyond me.
If there was ever a time for finger-pointing, that time has passed. We are all on the same team, here, no matter what state you live in or who you voted for. E Pluribus Unim, no?

[dhlmom05]

From someone who works here.....
Three companies, DHL, ABX Air, and ASTAR - we are all getting laid off. For those of you who want to sit around and say we''re fat, lazy Republicans, all I have to say is the majority of people that work here and at facilities around this country work their rears off everyday. As far as red vs blue, well both Obama and McCain were here while they were campaigning. They both wrote letters and demanded a fix and they both got absolutely nowhere. We''re still in the unemployment line. The people of Wilmington and of the surrounding counties are very upset about our own situations, but also very aware that all the ABX hubs in the country closed, DHL stations have gone from 475 to 120, that this doesn''t just effect us but it effects the contractors delivering our freight, the trucking companies that haul it etc. This episode focused on this town, because this is where the impact is the greatest. We know this effects people all over this country. This problem is bigger than Wilmington. While this story focused on three or four families and their stories, there are many thousands of similar stories. But we will do what we always do, we will pick ourselves and our communities up and we will rebuild; we will succeed.
To Mike, Angie, John and the others, thank you. We may not know what the future will bring, but I think we can all agree that it''s important to keep fighting.

[lancecordill-2009]

Wow, what a bunch of community whiners! What a bummer Wilmington Buckeyes. Do what what your neighbors next door in Indiana have to do, "shut up, stop your whining and get a (new) life!" You folks throw all of your eggs in one basket and do not do anything to keep them in the fridge and refreshed with new ideas, they are going to spoil and go bad some some day! Don''t blame you socio-economic probs on the Germans. Their business is to run a profitable business. Not to be your nest egg. Read Thomas Sowell''s, "Economic Facts and Fallicies". Then, get back to me.

[katwmn45]

I was dissappointed with the fact that 60 Minutes didn''t point out that the DHL crash is affecting thousands more than just the jobs in Wilmington. DHL sub-contracts their actual deliveries to multiple companies all over the United States. My husband works for one of these contractors. This time last year the terminal he worked for had nineteen routes doing daily deliveries. By January 1st they were down to three routes, and their terminal had been combined with another terminal further away from where his delivery route is. We are extremely grateful he still has a job but we know the stories of his immediate co-worker''s are the same as those at the airpark. The only difference is the sub-contractors didn''t get a severance package or any kind of job training.

My husband agrees with some of the messages we have read. As with any company, you have some employees who don''t put a lot of effort in to making their customers happy. I am thankful that he believes in working hard to please his customers because he understands that in the long run it is his customers who ultimately provide his salary!

[boohooh]

People of Wilmington amd Clinton County...

How many millionaires/billionaires are in your town...How many people make over $250,000 in your county...

How are those Bush tax cuts treating you...

Your county - Clinton- has you voted Republican for 40-50 plus years.. Why don''t you look at the voting record for your Republican Congressman (Rep Mike Turner) and Senators over that period of time.

What do you people expect... Your surprised... Mmm DHL made a cold hearted business decision and now we are to feel sorry for you.. Sorry but I don''t... No good jobs... mmm

No health insurance?
COBRA too expensive...
Financial Aid for college?
Unemployment Insurance?
Bankruptcy reform?
Anti Union laws...
Trillion dollars for an unnecessary war...
Deregulation, deregulation...

Now you want help ???

Wake up people, next time why don''t you vote with your economic interests instead of listening to your Sunday morning preachers and F*X News.

I''m sure Bush feels bad for you... Remember him the compassionate conservative!!!


This is what happens when people vote against there economic interests.

WAKE UP PEOPLE!!!

[shanesmiff]

I thought the show was very good. It was very sad for me to watch. My husband lost his job from ABX in Sept. and our lives have been turned upside down. We have moved and we are losing our house. My husband is going to school and I''m still looking for work to support our family. Right now I''m still very angry about the whole thing but I''m hoping that the community will stay strong and pray that things will work out for everyone. I miss Wilmington very much and wish the best for everyone.

[chriswalls09]

to the fella with the knives,
if you would like ,you are welcome to bring a couple by the store, i would be honored to sell them for ya!!
we could put them on our website also. i''m in the book under this n that shack.