DHL Express Canada to Shut Down Operations Nationwide, Starting June 20

DHL Express Canada is planning to shut down operations across the country starting June 20 because of stalled contract talks, a company spokesperson said in an email on Monday.

Before the shutdown, DHL will stop accepting international packages into Canada starting Tuesday at 9 p.m. ET, the spokesperson added.

The union Unifor, which represents over 2,100 DHL workers in Canada, had already announced that the company would halt operations starting June 19 and stop international imports on Monday.

DHL workers have been on strike since June 8, following a lockout by the company. DHL had previously said it had backup plans in place to keep things running and didn't expect major service issues.

Last week, DHL told Supply Chain Dive, “Thanks to our backup plans, we’re confident we can keep our services running smoothly across Canada.”

However, DHL has now decided to pause operations due to stalled negotiations, ongoing strike activity, and a new law that bans the use of replacement workers during strikes. That law, called Bill C-58, takes effect on Friday. DHL and Unifor have been negotiating since last year, following the expiration of their contract on December 31, 2024.

Unifor is asking for better pay and working conditions and is pushing back against changes it says cut pay for owner-operators. The union is asking for a 22% raise for hourly workers and a 42% raise for owner-operators, according to DHL.

DHL says it's committed to fair pay but feels the union’s demands are too high and would hurt the company financially.

Meanwhile, Canada’s delivery industry is facing more labor issues. Canada Post workers have been refusing overtime for four weeks while waiting for a new contract, and many customers are turning to other delivery services.

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