DHL Express locked out 2,100 unionized Canadian employees after midnight on Sunday, prompting the group of couriers, truck drivers and warehouse workers to respond with a strike later that morning.
The employees, represented by Canada’s largest private sector union Unifor, have been picketing DHL facilities throughout the country. The sides could not come to a new agreement after eight months of contract negotiations.
For now, DHL has set up a contingency plan that will use temporary replacement workers in a move that could test incoming federal laws set to take effect later this month.
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With replacement workers in tow, the logistics giant says it will be able to sustain its Canadian network operations. DHL Express does not anticipate significant service disruptions for its 50,000 customers, which include apparel sellers like Vancouver-based Lululemon Athletica, Shein and Temu.
On June 20, a federal law will go into effect banning replacement workers from being used in labor disputes such as strikes or lockouts.
“We will not stand by while DHL locks out our members across the country and threatens to use scabs in an attempt to pressure our members to take concessions. Our members deserve respect and a fair contract,” said Unifor national president Lana Payne in a statement. “We expect DHL to abide by the law on the books, passed unanimously by Parliament, which will come fully into force later this month.”
In a letter to Canadian Parliament, Payne said DHL’s decision was an attempt to undermine the imminent “anti-scab legislation.” She also said the union expects Canada Industrial Relations Board to issue all appropriate orders, such as fines of up to $100,000 per day, if replacement workers are still used by June 20.
The union also alleged the company bussed in hundreds of replacement workers to tour its Hamilton, Ont. facility to train them ahead of a potential work stoppage.
“All DHL’s actions are fully compliant with current legislation,” said a DHL spokesperson in a statement.
According to the spokesperson, DHL has proposed a 15 percent wage increase over five years, with a 5 percent increase in the first year of the contract. Additionally, the company has touted a hike in pension match and benefits, as well as increased union representation rights.
However, “there simply was not enough progress” in the negotiations to result in a new collective agreement, the spokesperson said.
Within the negotiations, the union’s sticking points include accommodations for injured workers, clearer employee seniority lists, access to cleaner bathrooms and concerns over electronic surveillance.
Unifor criticized changes that are suggested for the driver pay classification system, claiming that some workers driving 100 kilometers to pick up freight would get no compensation.
Additionally, the union panned DHL for rerouting pickups across the whole country while reducing pay for owner-operators.
In its statement, DHL said the revised compensation model for owner-operators and the review of its routes were designed to “address changes to the economic viability and operational structure of the Canadian market.”
DHL also said it has offered increased reimbursement for vehicles, as well as increased minimum guarantees.
The company gave its lockout notice to Unifor members on Thursday. Last month, 97 percent of the union’s membership voted in favor of a strike if negotiations broke down.
Negotiations have been ongoing between the parties since Oct. 1, with the current collective bargaining agreement having expired on Dec. 31.
Canada Post negotiations still on road to nowhere
The work stoppage comes as 55,000 Canada Post workers are stuck in their own labor dispute for a new contract.
Both the national courier and its union, the Canadian Union of Postal Workers (CUPW), are at odds over how to go about settling a new deal, with Canada Post denying the labor group’s request to move the talks to arbitration.
On Monday, both parties traded barbs, accusing each other of not looking to seriously negotiate a new deal.
“However, Canada Post’s actions suggest it does not want to negotiate,” the union said. “It wants to rewrite our agreements—and is seeking to use government interference to further its goals.”
Canada Post criticized the union of not responding to the “final offers” the Crown corporation made at the end of May, which included a new signing bonus of up to $1,000 on top of the prior proposal of a 14 percent wage increase over four years.
The carrier also suggested that the report compiled by an industrial inquiry commission established by Labour Minister Steven MacKinnon should be part of the terms of reference for any arbitration.
“The union’s refusal to recognize the IIC report and its recommendations in their proposed terms of reference for arbitration is unacceptable,” Canada Post said.
Unlike the DHL/Unifor commotion, there is no full work stoppage at Canada Post. The postal workers have instituted a nationwide overtime ban to keep mail operations glowing.
