Unifor is taking issue with DHL’s plans to use replacement workers before a law that would restrict the practice takes effect June 20.Frank Franklin II/The Associated Press
The union representing workers at DHL Express Canada DHL-NE says the company has locked them out amid a simmering dispute that adds uncertainty to nationwide parcel delivery – and could test new federal laws on the use of replacement workers.
Unifor, Canada’s largest private-sector union, says 2,100 truck drivers, couriers and warehouse workers across seven provinces were locked out just after midnight on Sunday after contract negotiations broke down. The union launched a strike in response hours later.
The German-owned carrier had proposed changes to its compensation structure that would, for many drivers, result in “more work for less pay,” Unifor president Lana Payne said.
Unifor also takes issue with the company’s plans to use replacement workers before a law banning them takes effect June 20. In a letter sent to MPs on Saturday, the union described DHL’s tactics as “an attempt to undermine” the forthcoming legislation.
DHL spokesperson Pamela Duque Rai said the company has negotiated with the union in good faith, including by offering a 15-per-cent wage increase over five years, but she said the two sides made too little progress to forge a new contract. The company has said it does not expect significant disruptions 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 said.
Meanwhile, Canada Post remains at loggerheads with 55,000 workers, whose union last month imposed an overtime ban that scales back parcel services.
DHL Express Canada has 50,000 customers across the country, including Temu, SHEIN, Lululemon and Siemens Canada, according to a Unifor statement. (Unifor also represents workers at The Globe.)
The union also warned the DHL work stoppage could disrupt the Canadian Grand Prix scheduled to take place in Montreal, since the company is the event’s logistics partner responsible for the transportation of Formula One vehicles.
A spokesperson for the Canadian Grand Prix said DHL Express has no role in the motor race, and the “official affiliation lies with DHL Global.”
Bargaining between DHL Express Canada and its unionized workers began late last year. But negotiations have been challenging, in part because of the complex makeup of the parcel company’s work force.
Around a third of Unifor’s members at DHL work as owner-operators of trucks, one-third work in clerical roles, and the rest work in warehouses or as company drivers and mechanics.
“There were lots of differences that we needed to try and harmonize,” Ms. Payne said.
On top of pay changes – which Unifor says will result in some operators driving long distances without compensation to pick up freight – key sticking points include accommodations for injured workers, access to clean washrooms and concerns over electronic surveillance, said Krishna Jaiswal, a Toronto-based cargo screener for DHL and member of the union’s national bargaining committee.
Some 97 per cent of the union’s membership voted in favour of potential strike action should negotiations break down. DHL served 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 said. “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 said DHL remains committed to negotiating with the union. She said the company’s pay proposals for owner-operators are designed to “address changes to the economic viability and operational structure of the Canadian market.”
Should the work stoppage continue until June 20, it could serve as an early test of new labour legislation for federally regulated employers.
The laws, which take effect later this month, restrict the use of replacement workers in the event of a legal strike action or lockout.
Employers prosecuted and convicted under the legislation could face fines of up to $100,000 a day.
The union’s letter to lawmakers alleges the company bused in hundreds of replacement workers to tour its Hamilton facility to train them ahead of a potential work stoppage. DHL did not respond to questions from The Globe about the 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 says.