DHL Express will cease accepting shipments to Canada on Tuesday and as its Canadian subsidiary prepares to suspend operations on Friday and as labor disputes escalate.
DHL Express Canada brought alternative workers after locking in 2,100 independent drivers, warehouse pickers and other members of the Unifor union on June 8 in response to stalled talks about the new collective bargaining agreement. The union threatened to strike without a new contract. The parcel courier at the time warned customers to expect a two to three-day delay in shipping.
The legislation prohibiting the use of alternative workers was originally scheduled to take effect on June 20, forcing the DHL’s hands. Under the new law, employers face financial penalties for using alternative workers during labor disputes.
DHL Express Canada said in a Monday notice on its website that an indefinite freight embargo will begin at midnight on Tuesday and all operations will be suspended at midnight on Friday.
“DHL Express is unable to deploy alternative workers or other necessary contingency measures to mitigate the impact of labor action and maintain its high standards of service quality due to the recent implementation of new labor legislation in Canada,” the company said.
The statement reads.
DHL Express Canadian workers represented by Unifor shut them out a week after the company shut them out. (Photo: Unifor)
DHL offers a 15% salary increase over five years, a 5% increase in the first year of contract, new premiums for certain job classifications, increased pensions and benefits, and increased union representation. It is also designed to modify the owner-operator compensation model to deal with changing market conditions. It said drivers will still receive competitive compensation and increase reimbursement for vehicles.
The union said the DHL requires concessions to negatively affect the compensation and working conditions of DHL members, including independent drivers. It opposes a new driver compensation system that will not compensate drivers for entry into their routes or pick up freight within 62 miles of the parcel facility, and will be a bigger latitude to lay off employees. The parties released conflicting information on whether drivers will see an increase or decrease in minimum guarantees.
In addition to wages, other Unifor priorities include the use of cleaning bathrooms, monitoring and automation issues, and worker treatment.
The suspension of the package service explicitly coincides with the labor dispute at Canada Post where workers refuse to work overtime, which is slowing down some delivery.
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