DHL Express Canada and Unifor have reached a tentative agreement on a new labor contract, a step toward ending a strike that has lasted more than two weeks, Unifor announced Wednesday.
Unifor spokesperson Jenny Yuen told Supply Chain Dive that if the tentative deal is ratified by union members, the strike and the company-imposed lockout will end. Such an action would pave the way for DHL Express to restart its Canada operations, which have been suspended since Friday after the country implemented new labor laws.
DHL Express expects to lift its Canada service suspension immediately upon successful ratification of the deal, the company said in an emailed statement.
"Throughout this period, DHL Express Canada has remained committed to negotiating with Unifor in good faith to renew our collective agreement, ensuring fair compensation for our employees while considering the current economic landscape," the company said.
Unifor represents over 2,100 DHL Express workers in Canada, including couriers, warehouse employees and truck drivers. Its members have been on strike for a new contract since June 8 after DHL initiated a lockout. Wages and working conditions have been key sticking points in negotiations.
Details of the tentative agreement will not be disclosed until a ratification meeting is held in the coming days, according to Unifor.
An end to the labor dispute would likely bring relief for DHL Express Canada's 50,000 customers, including Shein and Temu. The carrier's ongoing operations suspension has led shippers like Lulus and Olive Young Global to shift volume to other delivery providers.
Editor's note: This story was updated to include a statement from DHL Express.
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