DHL Express locks out workers in Canada, adding to parcel uncertainty

June 9, 2025 / Billboard Lifestyle /

DHL Express Canada locked out 2,100 delivery drivers, warehouse workers and customer service personnel on Sunday after failing to make progress on a collective bargaining agreement, but the company said its 50,000 customers should not experience any serious service disruptions.

The development adds to the uncertainty for parcel shippers in Canada, where Canada Post mail carriers are refusing to work overtime and have threatened to go on strike if a collective bargaining agreement isn’t reached. The dispute has allowed competitors to take a large chunk of Canada Post’s parcel business, at least in the short term.

DHL Express customers include China-based e-commerce sellers Temu and Shein, as well as Lululemon and Siemens Canada.

“We have activated contingency plans and will continue to deliver exceptional service to our customers. 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,” the integrated parcel and logistics provider said in a statement shared by email.

DHL Express said it has hired temporary replacement workers to ensure delivery continuity.

Unifor castigated the company for using outside labor before a new Canadian law outlawing such a practice takes effect on June 20. The legislation restricts federally regulated employers, such as DHL, from using replacement workers to perform work of union members who are on strike. “It is reprehensible that this company thinks they can bust our members’ right to fair and free collective bargaining by using scab labor,” Unifor National President Lana Payne said in a news release.

“In our view, not only is DHL’s conduct clear evidence of bad faith bargaining but also an attempt to undermine the imminent legislative amendments prohibiting the use of replacement workers,” Unifor said on Saturday.

A televised report by Ontario’s City News showed how police were needed to escort contract employees to the DHL headquarters facility in Brampton as they arrived on a DHL bus.

DHL denied a Unifor claim that the labor dispute could disrupt the Canadian Grand Prix, scheduled for Friday through Sunday in Montreal, noting that DHL operations for Formula One are independent from the local operations in the country. DHL Group in Germany is F1’s official logistics partner, but the transport of equipment, supplies and vehicles is primarily conducted by DHL Global Forwarding.

The sides have been negotiating a new labor pact for eight months.

DHL workers last month authorized Unifor to call a strike on June 8, when legal restrictions on the parties to take self-help action expired. DHL Express Canada gave a lockout notice to the union on Thursday. Unifor said its workers followed through with strike plans after being locked out at midnight on Sunday.

“DHL Express remains committed to working with Unifor to reach an agreement and resume regular operations,” the company said. “DHL Express is disappointed that we have been unable to come to an agreement with the bargaining committee. We have been committed to finalizing an agreement that is not only fair to our hourly employees and owner-operators, but also realistically reflects the current economic landscape.”

DHL said it has offered a 15% wage increase over five years, with a 5% increase in the first year of the contract, new premiums for certain job classifications, increased pension match and benefits, and increased union representation rights. It also seeks to revise the compensation model for owner-operators in response to changing market conditions. It says drivers would still receive highly competitive compensation and increased reimbursement for vehicles.

The union says DHL is demanding concessions that would negatively impact pay and working conditions for DHL members, including independent drivers. It objects to a new driver pay system that would not compensate drivers within 62 miles of a package facility to get to their routes or pick up freight, and to greater latitude for laying off workers. The parties have issued conflicting information about whether drivers would see minimum guarantees increase or decrease.

Unifor priorities include access to clean and secure washrooms, wage increases, addressing surveillance and automation issues, and worker treatment.

“By imposing a lockout, DHL is choosing confrontation over negotiation,” said Unifor Quebec Director Daniel Cloutier.

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