A DHL truck drives past a business location in New York on October 20, 2020. (AP Photo/Frank Franklin II, File)
Delivery giant DHL Express has locked out over 2,100 workers across Canada, leading to a standoff with the union representing them. While the company insists that operations will continue without major delays, union leaders warn that replacing union workers with temporary staff could deepen the conflict and harm ongoing negotiations.
On Sunday, DHL Canada initiated a lockout affecting truck drivers, warehouse staff, couriers, and call center workers represented by Unifor. The company quickly activated its emergency plan to maintain service for its 50,000 clients, which included brands such as Lululemon, Shein, and Temu. DHL spokesperson Pamela Duque Rai confirmed the company expects no major disruptions, crediting “proactive measures” taken in advance.
However, the union isn’t buying the optimism. Unifor President Lana Payne expressed strong opposition to DHL's use of replacement workers, which, although still legal under current law, sidesteps new legislation set to take effect on June 20. She called the move a pressure tactic meant to weaken the union’s bargaining position and said it has negatively affected trust at the negotiating table.
Payne also revealed that potential temporary hires were bused to a Hamilton facility for a walkthrough last week. Though DHL hasn’t officially responded to inquiries about these workers, the union believes the company is preparing to deploy them to fill in during the strike.
This dispute is part of a larger wave of unrest in Canada’s parcel delivery industry. Canada Post is also locked in heated negotiations with 55,000 workers, facing an overtime ban as both sides remain far from a deal. A decline in mail volume is creating financial strain across the sector, and even global players like DHL are feeling the impact. In March, the company announced plans to cut 8,000 jobs in Germany, its home country.
Back home, DHL expressed frustration that no agreement could be reached, stating that its offer includes a 15% wage increase over five years and hazard pay for those handling dangerous goods. However, the union argues that the proposal fails to address critical concerns about job conditions, workplace surveillance, and automation.
Unifor also raised concerns about changes to how drivers are paid. They claim the proposed system could leave some drivers travelling long distances—up to 100 kilometres—for pickups without reimbursement. The union says this could reduce earnings, particularly for "owner-operators" who work under contract rather than as full-time employees.
In response, DHL insists that the proposed pay structure is meant to reflect shifts in market conditions while ensuring competitive pay for its drivers.
Lastly, there were concerns that the standoff might affect next weekend’s Formula One Canadian Grand Prix in Montreal, for which DHL handles the transport of high-speed race cars. The company clarified that its F1 logistics operations are separate from its general delivery services and won’t be impacted by the lockout.
