DHL Express Canada will temporarily shutter operations nationwide on Friday if no new contract is reached between the logistics giant and its union employees. The company’s contract talks with union workers have made no progress since a June 8 lockout.
Unifor, the union representing the 2,100 locked out DHL employees, first unveiled that the company would shut down amid new federal “anti-scab” legislation that would go into effect on Friday.
A DHL Express spokesperson confirmed the shutdown, but did not say how long it will take place. The rep said the company remains hopeful to resume Canadian operations “at the earliest possible opportunity.”
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Ahead of the suspension, DHL Express will pause the collection of shipments to and from Canada starting 9 p.m. Eastern on Tuesday.
The moves run counter to DHL’s prior notice that the company did not expect significant service disruptions for its 50,000 customers, which include companies like Lululemon Athletica, Shein and Temu.
“As an essential service provider, DHL Express manages thousands of crucial international shipments daily, encompassing a diverse array of industries—from life-saving pharmaceutical deliveries to the products of small Canadian e-commerce enterprises,” the spokesperson said. “Our international shipping services not only allow Canadians to actively participate in global trade and bolster the local economy, but also ensures that essential goods are delivered efficiently and reliably.”
Currently, DHL Express is using replacement workers to fill in for the employees it has locked out. They would replace union employees who held down jobs including couriers, truck drivers and warehouse workers. The locked out employees represent a “substantial” portion of the company’s Canadian workforce, the spokesperson said.
On Friday, a new law will go into effect across Canada that bans replacement workers from being used in labor disputes such as strikes or lockouts.
As of that date, the Canada Industrial Relations Board can issue fines of up to $100,000 per day for any company that fails to comply with those rules.
The union employees opted to go on strike in the wake of DHL’s lockout, which occurred after the parties failed to conjure up a new contract despite eight months of negotiations. In the time since, the union workers have picketed 18 facilities nationwide where they have been locked out.
Unifor is seeking a 22 percent salary increase for hourly employees, as well as a 42 percent salary increase for owner-operators of trucks, both demands DHL says “do not reflect the current economic landscape and would jeopardize our operational viability.”
DHL had proposed a 15 percent wage increase over five years for hourly workers.
On the owner-operator front, Unifor has claimed DHL has previously reduced pay for owner operators, and shortened routes for employees. The union has panned changes made to the driver pay classification system that resulted in some workers driving 100 kilometers to pick up freight without getting any compensation.
The current collective bargaining agreement expired on Dec. 31.
“We stand firm in our mission. Your bargaining committee is unwavering in its fight to secure a fair collective agreement,” said Unifor’s DHL national bargaining committee in a Friday statement. “Let us be absolutely clear: we will not be intimidated by the company’s threats to disrupt service or shut down operations. DHL’s aggressive tactics—designed to pressure and divide us—will not succeed. We remain united, and we will not back down.”
All other DHL Group divisions in Canada are not affected by this service suspension nor are any DHL Express operations outside of Canada.
The work stoppage at DHL isn’t the only labor dispute that could constrict parcel delivery throughout Canada. National courier Canada Post has seen its own union delivery workers institute an overtime ban after failing to reach terms on a contract extension last month.
Unlike the potential shuttering at DHL, Canada Post still operates under normal business hours. However, union drivers can refuse to work beyond the typical eight-hours-per-day schedule, and won’t work more than 40 hours in a week, thus creating some delays.
Last week, the federal government ordered the Canadian Union of Postal Workers (CUPW) to vote on the final contract offers provided by Canada Post. The union was not happy with the decision, and had sought to take the contract talks to a third-party arbitrator.
That voting date has not been set yet.
