Editor’s note: This story has been updated with comments from DHL Express Canada clarifying the timing and rationale for its service suspension.
DHL Express Canada plans to shut down operations nationwide starting June 20 amid an ongoing impasse in contract negotiations, a spokesperson confirmed in an email to Supply Chain Dive Monday afternoon.
Ahead of the planned shutdown, DHL Express Canada will suspend the importation of international packages beginning at 9 p.m. ET on Tuesday, according to the spokesperson.
Prior to DHL’s confirmation, Unifor, a union representing more than 2,100 DHL employees across Canada, said that the carrier would be suspending operations starting June 19. The union also said the suspension of international imports was slated to begin Monday.
Union workers have been on strike since June 8 following a lockout initiated by the carrier. DHL Express Canada initially said it would be able to sustain service due to contingency measures it implemented.
“With the implementation of these proactive measures, we are pleased to confirm that we can sustain our operations throughout our Canadian network, and we do not anticipate significant disruptions to our service,” DHL told Supply Chain Dive last week.
However, the carrier is now choosing to suspend operations due to continually stalled contract negotiations, labor disruption and the implementation of legislation prohibiting the use of replacement workers during industrial actions, per the spokesperson. The law, Bill C-58, will go into effect Friday.
DHL Express Canada and workers represented by Unifor have been negotiating since last year. Their previous contract agreement expired Dec. 31, 2024.
Unifor is pushing for improved wages and working conditions, and has also been vocally against changes that it says reduce owner-operator pay. The union is specifically seeking a 22% salary increase for hourly employees and a 42% jump for owner-operators, per the DHL Express Canada spokesperson
The carrier is “committed to fair compensation” but believes the union’s demands “do not reflect the current economic landscape and would jeopardize our operational viability,” the spokesperson said.
Canada is also facing labor unrest elsewhere in its parcel delivery sector. Without a new labor contract, Canada Post employees are entering the fourth week of an overtime ban, pushing customers to seek alternative delivery options.
