DHL Express Canada, striking workers tentatively agree on labor deal

Operations remain suspended until Unifor members vote for new contract

DHL Express Canada workers represented by Unifor have been on strike and picketing facilities for more than two weeks. (Photo: Unifor)

Key Takeaways:

  • DHL Express Canada and Unifor reached a tentative agreement ending a strike by over 2,100 workers.
  • The agreement will be presented to union members for ratification in the coming days; details are pending.
  • The strike, which began June 8th, ended after new legislation banning replacement workers forced DHL to suspend operations.
  • Resumption of operations will increase parcel capacity in Canada, especially for international deliveries.

DHL Express Canada and striking workers have reached a tentative agreement on a new contract, according to the Unifor union, raising stakeholder hopes the national courier will soon be able to resume operations.

Unifor, which represents more than 2,100 DHL Express truck and van drivers, warehouse pickers and clerical workers in Canada, said details of the deal will not be disclosed until it is finalized. A ratification meeting for members will take place in the next few days, it said.

Unifor will maintain picket lines until the deal is ratified, said spokeswoman Jenny Yu. DHL Express confirmed in an email that a preliminary settlement has been reached.

DHL Express Canada locked out workers on June 8 and the union immediately reciprocated with a strike action. DHL Express was able to operate for about 10 days by using replacement workers, but was forced to suspend operations on June 20 when new legislation banning the use of strikebreakers took effect. The company was unsuccessful in getting the Canadian government to issue an exemption for the continued use of replacement workers.

Unifor was seeking a 22% hourly wage increase and a 42% cost-of-living increase for owner-operator drivers over three years. 

DHL Express said it offered a 15% wage increase over five years, premiums for certain job classifications and increased pension benefits. It also sought to revise the compensation formula for independent drivers so that it is based on market conditions. 

DHL Express is not one of the top five couriers in Canada, but is an important shipping option for many businesses, especially for international deliveries. A resumption in operations will also improve parcel capacity at a time when Canada Post, the largest delivery company, is locked in protracted bargaining with mail carriers who refuse to work overtime. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com