DHL Express-Unifor Agreement Reached After Two-Week Lockout in Canada

DHL’s other business units in Canada were not affected by the service disruptions, including DHL Global Forwarding, DHL Supply Chain, DHL eCommerce, and Post & Parcel Germany.

After a two-week operational standstill, a tentative DHL Express-Unifor agreement has been reached. This marks the end of a dispute that caused DHL Express services in Canada to come to a complete stop. 

The agreement between DHL and Unifor, the union representing over 2,100 DHL Express Canada couriers, truck drivers, warehouse staff, and clerical employees, was announced late on June 25.

Details of the agreement have not been made public but will be announced after it is ratified. Unifor will maintain picket lines until then.

Union workers have been on strike since June 8, following a lockout initiated by the company.

The DHL Express-Unifor agreement comes as Canada Post continues to face delivery delays and labour unrest, with employees now entering the fourth week of an overtime ban and no agreement with the Canadian Union of Postal Workers (CUPW) in sight.  

Unifor, DHL disagree over wages and working conditions

Unifor is Canada’s largest private-sector union. It has been in a standoff with DHL Express over wages and working conditions.

The two parties began negotiations on October 1, 2024, ahead of their collective agreement's expiration on December 31, 2024.

Unifor pushed for a 22% wage increase for hourly employees and a 42% increase for owner-operator drivers.

DHL, in turn, proposed a 15% wage increase over five years, along with job classification premiums and improved pension contributions. 

The carrier said it also aimed to modify the pay structure for independent drivers to better align with current market rates.

From lockout to full shutdown

With no agreement reached, DHL Express Canada initiated a lockout on June 8.

On June 17, the company paused the collection of shipments to and from Canada. This was followed by a full suspension of Express services across the country as of June 20.

In-transit shipments that weren’t delivered by June 19 were held in DHL’s network. 

DHL initially said it expected to continue operating across Canada using contingency measures. 

However, as negotiations stalled and Bill C-58’s ban on replacement workers was implemented, DHL went through with suspending its operations.

Bill C-58 prohibits worker replacement

Bill C-58, which came into effect on June 20, 2025, prohibits federally regulated employers from using replacement workers during strikes or lockouts.

The law is designed to strengthen collective bargaining by limiting employers’ ability to maintain operations during labour disputes.

DHL Express Canada had initially relied on replacement workers during the early phase of the lockout, but the new restrictions reduced its operational flexibility.

The company cited the law as one of the reasons for suspending its service. 

DHL appeals for exemption under new labour law

DHL Express appealed to the federal government under Section 107 of the Canada Labour Code to intervene and support the continuity of its operations.

In a letter to Prime Minister Mark Carney and Patty Hajdu, Minister of Jobs and Families, DHL requested an exemption from Bill C-58.

The company argued that the inability to employ temporary workers during the lockout affected over 50,000 international and domestic shipments daily. 

It also described its Express operations as “critical” to the supply chain and the broader Canadian economy.

In response, Unifor sent a formal letter to the government rejecting DHL’s appeal.

The union emphasized that DHL had previously agreed its services were not considered “essential” under the Labour Code.

It also noted that DHL had issued the lockout just days before Bill C-58 came into effect, while preparing to use replacement workers in the interim.

Despite these tensions over the exemption request, continued talks resulted in an agreement that now awaits ratification.

Next steps for Canadian businesses

If your operations depend on courier shipping, we recommend you take the following steps until service levels return to normal:

• Assess your shipments and reroute time-sensitive goods.
• Adjust your supply chain plans for service recovery delays or backlogs.
• Consult your customs broker to monitor developments and discuss contingency measures. 

How Cole International can help

At Cole International, we offer freight forwarding solutions to help streamline your import operations—from origin to destination.

Additionally, our customs and compliance consulting and customs brokerage services are designed to help you navigate changing market conditions, simplify every step of the import process, and ensure your full compliance.

Please reach out to one of our trade professionals to discuss your best shipping options right now and how we can help you.