DHL shuts down across Canada as 2,100 workers strike and new anti-scab law triggers chaos

DHL Express Canada suspended operations nationwide on Friday(June 20), halting thousands of parcel deliveries and disrupting major supply chains, as a labor strike coincided with the introduction of new federal legislation banning the use of replacement workers.

The shutdown follows nearly two weeks of stalled contract negotiations between DHL and Unifor, Canada’s largest private-sector union. The standoff escalated on June 8 when the company locked out 2,100 unionized workers, including truck drivers, clerks, and warehouse staff, across Ontario, British Columbia, and Quebec.

In response, Unifor launched a strike, citing unfair labor practices and insufficient wage proposals.

New “anti-scab” legislation

Friday’s operations freeze coincides with the federal government’s new “anti-scab” legislation (Bill C-58), which officially came into effect the same day. The law prohibits federally regulated companies, like DHL, from hiring replacement workers during strikes or lockouts, a long-standing demand from organized labor.

DHL, a German-based logistics giant with about 50,000 Canadian customers, including Lululemon, Shein, and Siemens, had continued partial operations using temporary hires during the initial days of the dispute. But as the law loomed, the company began winding down services earlier this week.

“DHL has shut down operations nationally,” Unifor said in a statement Friday morning. “This is the real-world impact of corporate refusal to bargain fairly, and a significant test of Canada’s new labor protections.”

Union President Lana Payne accused the company of undermining workers by legally using replacement labor before June 21, a tactic she says damaged trust and bargaining momentum. DHL has not denied the use of replacement workers.

The dispute stems from Unifor’s demand for a 22 percent wage increase over three years and stronger protections for owner-operator drivers who face rising costs for fuel, vehicles, and insurance. DHL has proposed a 15 percent increase over five years, alongside limited bonuses and pension improvements.

Jobs Minister Patty Hajdu confirmed she met with both parties on Wednesday after DHL formally requested government intervention to restore operations. So far, Ottawa has not indicated it will step in.

In the meantime, shipments remain frozen in DHL facilities, and businesses are scrambling to switch to alternate carriers like FedEx and Purolator.