DHL Express Canada has begun its temporary suspension of operations as employees represented by the labor union Unifor continue their strike, a company spokesperson confirmed to Supply Chain Dive.
Any shipments in transit to Canada that weren't delivered by Thursday evening will be held in DHL Express' network, the company said in an update on its website earlier this week. Once service resumes, shipments will be processed for delivery.
The suspension will remain in place until a resolution with Unifor is reached or Canada makes legislative amendments allowing DHL Express to use temporary workers in contingency plans, according to the company.
DHL Express announced the shutdown plans earlier this week as contract negotiations continued with Unifor. The union represents more than 2,100 DHL employees across Canada that have been on strike since June 8 following a company-imposed lockout. Key focus areas in discussions for a new contract include wages and working conditions.
The carrier said it had limited strike-related shipping disruptions in Canada through contingency measures, but it is suspending services following new legislation that took effect Friday. The law in Canada now prohibits the use of replacement workers during strikes or lockouts.
DHL Express requested Canada's government intervene in the matter as "the ban on replacement workers during strikes threatens to severely undermine our operational capabilities," according to a letter executives sent last week. Unifor criticized the move, saying the carrier wants the government to override workers' rights.
"Now, instead of negotiating a fair agreement at the table, DHL is running to Ottawa to ask for special treatment to get around a law designed to protect workers and safeguard the integrity of collective bargaining," Unifor National President Lana Payne said in a news release Wednesday.
The DHL Express Canada suspension does not impact DHL Global Forwarding, DHL Supply Chain services or the inbound delivery of shipments from other DHL units.
"For certain shipment profiles, customers may be able to find a service that meets their needs via another DHL business unit," DHL Express said on its website. "In this case, they would need to contact the respective business unit directly."
Shippers are adjusting their carrier networks in response to the DHL Express Canada suspension, with several tapping into FedEx's international services as an alternative.
Women's clothing brand Lulus informed customers that express shipping to Canada is unavailable as a result of the suspension, and orders not yet shipped may be rerouted to FedEx International Priority. Matsukaze, which sells eyelash extension supplies, advised customers shipping to Canada to select FedEx as the carrier at checkout instead. Olive Young Global, a health and beauty products seller, is also using FedEx to deliver Canada-destined orders.
