DHL Express has resumed all services in Canada and will resume full operations on Monday after union workers represented by Unifor approved a new four-year contract.
The approval of the collective bargaining agreement ended a strike/lockdown that lasted nearly three weeks and forced the company to stop parcel delivery on June 20. Unifor said the agreement covers more than 2,100 truck and van drivers, warehouse pickers and paperworkers, and the agreement was approved for 72% of membership.
Negotiators from both sides reached a preliminary contract agreement on Wednesday.
“DHL Express Canada has worked diligently and sincerely with Unifor's bargaining committee to reach a fair deal and ensure a quick recovery of service… We are pleased to be able to resume our operations and welcome all team members. We will also give priority to our customers the highest quality service.”
Unifor said wages on the new contract have increased by 15.75% over the lifetime of the contract, a new payment structure for independent drivers, an increase in pensions for hourly workers, and a new pension for owner operators. Labor agreements also add short-term disability payments, provide new mental health benefits, increase severance payments and wage adjustments, and provide greater worker protection against artificial intelligence and automation.
The union attributes the new federal ban to the use of replacement workers to help resolve the negotiating standoff. DHL Express initially hired alternative workers to maintain operations, but delivered was suspended when legislation came into effect on June 20. Companies that violate the law may receive a $74,000 fine per day.
During the bargaining period, DHL proposed a 15% increase in wages over five years, while Unifor asked for an 22% increase in workers per hour.
“This is a historic dispute in our union books because we are a test case of new anti-convoy legislation, our unions and members stand high and strong, and the end result is that we have a fair collective agreement,” Lana Payne, President of the Unified State, said in a press release.
Unifor said its workers will return to work, but added that there is no clear timetable to do so.
DHL Express Canada may take several days to work through a backlog of packages that stay in its facilities.
DHL Express Canada seized the expected strike by locking down workers on June 8. A few hours later, Unifor launched a strike.
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