A labour dispute has erupted at DHL Express Canada, as the union representing it’s workers, Unifor, alleges a lockout amid disagreements over compensation and the use of replacement workers. This conflict introduces potential disruptions to parcel delivery services across the nation and may serve as an early test of forthcoming federal labour laws.

Unifor, which identifies itself as Canada’s largest private-sector union, reports that 2,100 of its members, including truck drivers, couriers, and warehouse staff across seven provinces, were locked out shortly after midnight on Sunday following unsuccessful contract negotiations. In response, the union initiated a strike.

According to Unifor president Lana Payne, the German-owned carrier proposed modifications to its compensation structure that would result in “more work for less pay” for numerous drivers.

Unifor is also contesting the company’s intentions to utilize replacement workers before a law prohibiting such practices comes into effect on June 20. In a letter addressed to MPs on Saturday, the union characterized DHL’s strategies as “an attempt to undermine” the impending legislation.

DHL spokesperson Pamela Duque Rai stated that the company has engaged in good-faith negotiations with the union, including proposing a 15-per-cent wage increase over five years. However, she noted that insufficient progress was made to reach a new agreement. the company anticipates no significant interruptions to its services.

“As part of its contingency plan, DHL Express has sourced temporary labour resources.All DHL’s actions are fully compliant with current legislation,” Ms.Duque Rai asserted.

Concurrently, Canada Post is in disagreement with 55,000 workers, whose union implemented an overtime ban last month, leading to a reduction in parcel services.

According to a Unifor statement, DHL Express Canada serves 50,000 customers nationwide, including Temu, SHEIN, Lululemon, and Siemens Canada. (Unifor also represents workers at The Globe.)

The union has also cautioned that the DHL work stoppage coudl potentially disrupt the Canadian Grand Prix in Montreal,given that the company is the event’s logistics partner responsible for transporting Formula One vehicles.

Though, a spokesperson for the Canadian Grand Prix clarified that DHL Express has no involvement in the motor race, stating that the “official affiliation lies with DHL Global.”

Negotiations between DHL Express Canada and its unionized employees commenced late last year. These negotiations have been complex, partly due to the diverse composition of the parcel company’s workforce.

Approximately one-third of Unifor’s members at DHL are owner-operators of trucks, another third are in clerical roles, and the remainder are employed in warehouses or as company drivers and mechanics.

“There were lots of differences that we needed to try and harmonize,” Ms. Payne explained.

In addition to pay adjustments, which Unifor claims will result in some operators driving long distances without compensation to pick up freight, key points of contention include accommodations for injured workers, access to clean washrooms, and concerns regarding electronic surveillance, according to Krishna Jaiswal, a Toronto-based cargo screener for DHL and a member of the union’s national bargaining committee.

Approximately 97 per cent of the union’s membership voted in favor of potential strike action if negotiations failed. DHL issued its lockout notice several days before the deadline to reach an agreement.

“It was clearly intended as a pressure tactic to force concessions,” Mr. Jaiswal stated.”We see it as a sign of disrespect towards the bargaining process and the workers who keep DHL running all across the country.”

Ms. Duque Rai affirmed that DHL remains dedicated to negotiating with the union. She explained that the company’s pay proposals for owner-operators are intended to “address changes to the economic viability and operational structure of the Canadian market.”

If the work stoppage persists until June 20, it could provide an initial assessment of new labour legislation for federally regulated employers.

These laws, set to take effect later this month, will restrict the use of replacement workers during legal strike actions or lockouts.

Employers found guilty of violating the legislation could face fines of up to $100,000 a day.

The union’s letter to lawmakers alleges that the company transported hundreds of replacement workers to its Hamilton facility for training in anticipation of a potential work stoppage. DHL has not responded to inquiries regarding this allegation.

“Unifor is prepared to act quickly to seek enforcement of this legislation in the event DHL attempts to use replacement workers,” the union’s letter concludes.