DHL has reached a tentative agreement with the union.
DHL Express Canada suspension of its operations nationwide has had ripple effects throughout major supply networks. Businesses have scrambled to find short and long term alternatives.
DHL Canada has reached a tentative agreement with the union. The agreement will go to the union for final approval (which is expected). Service is expected to resume as early as July 2nd.
Unpacking the DHL Canada Strike
The current disruption stems from a labor dispute involving key players and significant legislative changes. Understanding these elements is crucial for businesses seeking to mitigate the impact.
The Parties Involved
The primary entities in this dispute are DHL Express Canada and Unifor. DHL Express Canada is a global logistics powerhouse, serving approximately 50,000 Canadian customers. On the other side is Unifor, Canada's largest private-sector union, representing over 2,100 DHL workers. This unionized workforce includes truck drivers, clerks, and warehouse staff across key Canadian provinces: Ontario, British Columbia, and Quebec.
Timeline of the Dispute
The conflict escalated following nearly two weeks of stalled contract negotiations between DHL and Unifor. The standoff intensified on June 8, when DHL initiated a lockout of its 2,100 unionized workers, which in turn prompted a subsequent strike by the union. This is after a year of discussions.
Friday, June 20, 2025: Federal government's new "anti-scab" legislation, Bill C-58, officially came into effect This landmark law prohibits federally regulated companies from hiring replacement workers during strikes or lockouts, a long-standing demand from organized labor. In direct response to this legislation, DHL Express Canada suspended its operations nationwide on June 20, effectively halting thousands of parcel deliveries.
June 25th: Tentative Agreement
July 2nd: Service expected to fully resume on or before July 2nd, 2025
Core Issues of the Dispute
The central points of contention revolve around Unifor's demands for a 22% wage increase over three years, coupled with stronger protections for owner-operator drivers.
DHL, in contrast, has proposed a 15% increase over five years, along with limited bonuses and pension improvements. DHL has proposed “meeting points” that would reduce costly mileage paid to some of the most highly paid owner-operators.
Impact on Businesses and Shipments
The immediate consequence for businesses has been the freezing of shipments. Any in-transit parcels not delivered by Thursday, June 19, are currently being held within DHL Express' network, awaiting the resumption of services.
In response to the crisis, Jobs Minister Patty Hajdu met with both DHL and Unifor after DHL formally requested government intervention to restore operations. Unifor has urged the government to refrain from intervention. Ottawa is encouraging both parties to reach their own agreement.
The Strike does not affect DHL Global Forwarding, DHL Supply Chain services, or inbound deliveries from other DHL business units.
The complete suspension of DHL's operations underscores how legislative changes can profoundly alter the dynamics of labor disputes and, consequently, supply chain stability. The ability of the new anti-scab law to remove DHL's option to mitigate the strike's impact with temporary workers forced a full shutdown.
Beyond Disruption: Embracing a Multi-Carrier Shipping Strategy
The current DHL strike serves as a stark reminder of the inherent vulnerabilities in relying on a single shipping partner. Jetship Worldwide helps companies adopt a multi-carrier approach. This approach is essential for ensuring business continuity and supply chain resilience.
Strategic Advantages of a Multi-Carrier Approach
- Diversifying shipping partners offers several critical benefits that can safeguard business operations against unforeseen disruptions:
- Flexibility and Cost Efficiency: By engaging with multiple carriers, businesses gain the ability to compare rates and services, selecting the most suitable option for each specific shipment. This strategic flexibility may not lead to reduced shipping costs with each carrier but can reduce overall costs with more optimized choices.
- Mitigating Rate Volatility: Having a diversified carrier network empowers businesses to monitor these changes and strategically shift shipments. As opposed to being beholden to a single carrier.
- Improved Delivery Speed and Reach: DHL offers advantages to most of the world not all areas. There are more specialized options, for example, to the USA and middle east.
- Enhancing Business Continuity: A diversified carrier network acts as a vital safeguard against a wide array of unexpected disruptions. These can include weather-related delays, labor strikes (as seen with DHL), or sudden surcharges imposed by a single carrier.
The immediate crisis caused by the DHL strike serves as a powerful catalyst, compelling businesses to confront the consequences of single-carrier dependence. This negative experience directly compels a re-evaluation of supply chain risk.
Alternative Shipping Options in Canada: A Comprehensive Guide
The Canadian logistics landscape offers a robust array of carriers, each with distinct strengths for domestic, international, and specialized shipping needs. Businesses affected by the DHL strike have several viable alternatives to consider.
Major Canadian International Carriers
These are well-established players offering broad services and extensive networks.
- FedEx and UPS: FedEx and UPS are well known for their global scale, tracking systems and its ability to deliver
- Canada Post: Among Canada's largest parcel delivery options, Canada Post provides postal delivery via their postal partners. Tracking and transit times, however, are not of the same quality as commercial carriers.
- Purolator: Purolator is a leading integrated freight, package, and logistics provider, delivering packages to, from, and within Canada. However, from Canada they rely on other carriers including UPS and DHL.
Specialized Canada domestic Alternatives
These carriers offer unique value propositions, often catering to specific market segments or offering more specialized services.
- Canpar Express and Loomis: Canpar Express and Loomis are subsidiaries of Canadian logistics conglomerate, Trans Force. Both companies offer mostly ground delivery across Canada.
- Chit Chats: Chit Chats primarily transits goods to the USA for delivery via USPS
- 3. GLS Canada: Atrusted carrier for both parcels and freight across Canada. It is part of a large European network.
Jet Worldwide Canada (and other 3PL’s)
With over 40 years of experience, Jet Worldwide specializes in international and domestic shipping, aiming to simplify complex logistics processes. We provide comprehensive cross-border logistics support, including expertise in tariff classification, valuation, free trade agreements, and customs clearance. Gain access to an array of options rather than a one-size-fits-all solution.
Leveraging Third-Party Logistics (3PL) Providers
Partnering with a 3PL provider - such as Jetship Worldwide - can help manage international logistics challenges. 3PLs often possess extensive global networks of transportation and warehouse providers, helping businesses navigate complex customs and regulatory compliance issues without needing to invest in in-house specialists.
The strike is over but not the need to diversify
Beyond partnering with a 3PL provider - such as Jetship Worldwide - it is best to keep an active account with at least one alternative carrier. The big loveable bear hug you might get from a carrier for giving all your volume is actually a grip meant to keep you captive.
Corp. Jet Worldwide. For General information only.
