DHL Express has restored all services in Canada and will resume full operations Monday after union workers represented by Unifor ratified a new four-year contract, the company announced Saturday.
Approval of the collective bargaining agreement ends a strike/lockout that lasted nearly three weeks and forced the company to halt parcel deliveries on June 20. Unifor said the agreement, which covers more than 2,100 truck and van drivers, warehouse pickers and clerical workers, was ratified by 72% of the membership.
Negotiators for both parties reached a tentative contract agreement on Wednesday.
“DHL Express Canada has worked diligently and in good faith with Unifor’s bargaining committee to reach a fair deal and ensure a prompt return to service. . . We are excited to resume our operations and welcome back all our team members. Together, we’ll prioritize delivering the highest quality service to our customers,” DHL Express Canada said in a statement.
The new contract features a 15.75% increase in wages throughout the life of the contract, a new payment structure for independent drivers, pension increases for hourly workers and a new pension for owner-operators, according to Unifor. The labor agreement also increases short-and-long term disability payments, provides a new mental health benefit, increases severance and wage adjustments, and provides greater worker protection from artificial intelligence and automation.
The union credited a new federal ban on use of replacement workers with helping to resolve the negotiating standoff. DHL Express initially hired replacement workers to maintain operations, but suspended deliveries when the legislation took effect June 20. Companies that violate the law could be subject to a $74,000 penalty per day.
During bargaining, DHL had proposed a 15% wage increase over five years while Unifor sought a 22% increase for hourly workers.
“This is a historic dispute in our union’s books because we were the test case for the new anti-scab legislation and our union and members stood tall, held strong, and the end result is we got a fair collective agreement,” Unifor National President Lana Payne said in a news release.
Unifor said its workers will return to work, but added there is no definite timeline to do so.
It likely will take several days for DHL Express Canada to work through the backlog of packages stuck in its facilities.
DHL Express Canada had preempted an expected strike by locking out workers on June 8. Unifor followed hours later by initiating a strike action.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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