Canada’s couriers could endure multiple work stoppages over the next month that would slow down parcel delivery throughout the country.
While 55,000 union postal workers at Canada Post are still looking to settle two contracts ahead of a potential May 22 negotiating deadline, another 2,500 workers at DHL Express voted 97 percent in favor of authorizing a strike set for June 8 if talks don’t amount to a new contract.
On Tuesday, Canada Post negotiators informed the Canadian Union of Postal Workers (CUPW) that they were leaving the negotiation table, citing that “a temporary pause is necessary” after several days of discussions “without meaningful progress.”
Related Stories
In mid-November, the union went on strike for a month, ultimately leading to some parcel and mail delays around Christmas. Canada’s labor relations board issued a back-to-work order to end the stoppage, extending the prior collective bargaining agreements to late May.
Canada Post said Tuesday’s pause is designed to help members prepare new proposals to help move the discussions forward. No date has been set for when those offers will be revealed.
The union called the move “reprehensible,” saying it keeps workers and the public “on edge.”
“Throughout the entire bargaining process, Canada Post has refused to take responsibility for the financial situation it finds itself in,” said the CUPW in a statement. “They have also ignored our offer to use existing collective agreement language to allow for weekend delivery.”
The move comes ahead of a report expected to be released by a government-assembled inquiry commission on Thursday, which will recommend Labour Minister Steven MacKinnon on how to approach the situation ahead of the negotiating deadline. The union alleged Canada Post will make new offers “immediately” after the report’s release.
Along with a second strike, there’s also a possibility that Canada Post could lock out the employees.
Union calls out an “unprecedented level of confrontation” at DHL
The DHL employees who authorized a June strike Saturday after a weeklong vote are represented by 320,000-member Unifor, Canada’s largest private sector union.
The union entered negotiations with the logistics provider back in September, with the parties having spent more than 25 days at the bargaining table.
But both sides remain far apart on almost all issues, according to Unifor, which said the company has refused to engage in monetary discussions.
DHL Express Canada said it is committed to negotiating with Unifor in good faith to renew the collective bargaining agreement.
“While we have made some progress, we’ve been unable to reach a final agreement,” a DHL Express representative said in a statement. “As an essential business, our main priority is to achieve a fair, sustainable deal, and reasonable terms for our employees, who deliver outstanding service for our valued customers on a daily basis. We remain committed to maintaining a safe, secure working environment for all our employees. In the event of a strike, DHL Express is fully prepared and has contingency plans in place.”
The union workers, which consist of truck drivers, couriers, warehouse and clerical workers, conducted the strike vote on the grounds that DHL’s offers were “insufficient.”
The staff is demanding guaranteed hours with no subcontracting to other firms, as well as increased wages that surpass inflation.
Unifor says DHL has been “aggressively reducing” hourly workers from full-time to part-time in locations across the country. Among its grievances, the union is seeking access to safe, clean bathrooms and clearer employee seniority lists, and is concerned with issues like rerouting of trucks, member productivity and terminations.
“There is an unprecedented level of confrontation at DHL,” said Unifor Quebec director Daniel Cloutier in a statement.
The next round of negotiations will take place from June 1-8. Like Canada Post, DHL could also opt to lock out its employees ahead of strike action.
UPS hits U.S.-to-Canada shipments with surcharges
As the Canada Post labor situation unfolds, UPS is tacking on extra “surge fees” for shipments from the U.S. to Canada starting May 18, four days ahead of contracts’ expiration.
UPS is likely to be an alternative for shippers if another work stoppage occurs at Canada Post, which would flow more packages into its network.
A 49 cents-per-package surcharge will be tacked on for UPS Standard shipments to Canada, while deliveries via the low-cost, less urgent UPS Worldwide Economy option will include a $1.25-per-pound fee. Standard shipping often carries a three-to-five day shipping time, while Worldwide Economy shipments take five-to-12 days to reach their destination.
The courier’s Worldwide Express, Saver, Express Plus, Expedited and Express Freight offerings will have a 49 cents-per-pound charge.
All surcharges will be in effect until further notice.
UPS levies these fees in times when service is under duress under high demand periods, such as ahead of the holiday season, and again in March and then April as Chinese goods flooded the U.S. ahead of tariffs and the closure of the de minimis provision.
Surge fees may be implemented based on regular assessments of shipping volume, available capacity and other considerations, UPS says.
