Latest news with #GeoffWalsh
Yahoo
27-06-2025
- Business
- Yahoo
DHL Express Canada Seeks ‘Anti-Scab' Law Exemption, Citing ‘Essential' Services
DHL Express Canada suspended operations nationwide on Friday as the company no longer could continue using replacement workers to fill the void of the more than 2,100 employees it locked out earlier this month. But the logistics giant is still holding out hope to be exempt from Canada's 'anti-scab' Bill C-58 legislation that went into effect Friday so it can resume regular business. That law bans replacement workers from being used in labor disputes such as strikes or lockouts, and subjects companies to a $100,000 per day fine. More from Sourcing Journal EU's Supply Chain Rules Receive 'Another Blow' as Member States Propose Deeper Cuts WTO to Intervene in Trade Disputes Between Canada and China California Government Report Assesses a Decade of Changes in Retail Crime DHL locked out the series of couriers, truck drivers and warehouse workers on June 8 when months-long contract negotiations ended with no new deal in place, with the union workers opting to go on strike in retaliation. On June 14, DHL Express Americas CEO Andrew Williams and DHL Express Canada CEO Geoff Walsh co-penned a letter to Prime Minister Mark Carney and jobs minister Patty Hajdu, saying that the new legislation poses significant risks to Canada's supply chain, particularly the essential services the company provides. The CEOs reasoned that while some organizations may be able to temporarily shift production during a work stoppage, 'as a service provider we are either open or we are closed.' They argued that the ripple effects of a temporary closure of the business could lead to increased consumer prices, reduced availability of goods and further job losses across the economy. 'Our operations not only facilitate trade and bolster local economies but also ensure that essential goods are delivered efficiently and reliably,' the DHL execs wrote. 'However, the ban on replacement workers during strikes threatens to severely undermine our operational capabilities, forcing us to halt operations and communicate to our global network that Canada is effectively closed for trade. This is a very difficult position for any organization and especially one such as DHL Express, that just a few years back was deemed an essential service during the pandemic.' Lana Payne, the national president of Unifor, the union representing the DHL Express employees, pushed back against claims in her own letter to Canadian government officials. Payne said that in the month ahead of the start of contract negotiations on Oct. 1 last year, both Unifor and DHL agreed that there were no 'essential services' performed by members of the bargaining unit which were necessary to prevent an immediate and serious danger to the safety or health of the public. 'This is in stark contrast to the grandiose position DHL is taking today in which it characterizes its operations as 'critical' to the supply chain and the economic wellbeing of Canada as a whole,' said Payne. 'To be clear, DHL is not even one of the top four express package delivery companies in Canada and DHL workers represent fewer than 0.7 percent of all local delivery workers and less than 15 percent of all courier workers in the country.' And while Williams and Walsh also accused Unifor of intentionally stalling discussions to coincide with the impending implementation of Bill C-58, Payne denied the allegations. She also said that DHL knowingly triggered the lockout on June 8 despite knowing that the law was going into effect just 12 days later. Unifor is seeking a 22 percent salary increase for hourly employees, as well as a 42 percent salary increase for owner-operators of trucks, with the DHL execs saying in their letter that 'such demands jeopardize our operational viability.' The company had proposed a 15 percent wage increase over five years for hourly workers. The union's DHL bargaining committee responded to the letter with its own statement, indicating that the company 'throws out numbers to make the union's proposals seem unreasonable.' The labor group said its proposals reflect the reality of rising costs. 'For owner-operators, any proposed increases are directly tied to soaring fuel prices, growing vehicle operation costs and a fair wage increase that keeps pace with inflation, realities DHL has consistently refused to recognize,' the statement read. Unifor gave its gripes about DHL's demand of 'significant concessions that would severely hurt workers,' making claims that the company has changed the driver pay system in a way that would result in less money for drivers, and attempted to reduce the daily minimum guarantee for them. Additionally, the union brass repeated a claim that truck drivers have been able to travel up to 100 kilometers with no compensation. The union said DHL refuses to acknowledge and provide wage adjustments to customer service reps and employees within other classifications, and accused the logistics company of not recognizing any potential job losses that may occur using AI.
Globe and Mail
17-06-2025
- Business
- Globe and Mail
DHL Express Canada to suspend operations with 2,100 workers involved in strike, lockout
DHL Express Canada DHL-NE plans to shut down operations across the country this week amid a strike and lockout involving 2,100 truck drivers and other workers, adding to turmoil in the parcel market. With the two sides at an impasse, the company said it will halt thousands of daily deliveries starting Friday – the same day that federal legislation banning replacement workers takes full effect. DHL will stop receiving inbound packages to Canada from abroad on Tuesday at 9 p.m., DHL said in an e-mail. Spokeswoman Pamela Duque Rai pointed to stalled negotiations with Unifor and the legislation known as Bill C-58, 'which prohibits the use of replacement workers during industrial action,' she noted. On June 8, the German-owned carrier said it was rolling out a 'contingency plan' that allowed it to keep serving its more than 50,000 customers, which range from retailer Lululemon to e-commerce giants Shein and Temu. Duque Rai had said in an e-mail at the time that DHL did not expect 'significant disruptions' to its service. Unifor, which represents DHL truck drivers, couriers and warehouse and call centre employees, had warned against any steps to supplant unionized workers with temporary ones, with president Lana Payne saying the move would impose a chill on contract talks. Last Friday, Unifor's bargaining committee said it had met with DHL Express Canada CEO Geoff Walsh, who stressed the possibility of a halt the following week. 'We will not be intimidated by the company's threats to disrupt service or shut down operations,' the committee said in a June 13 bulletin to members. The upcoming pause adds to the labour tumult in the parcel sector, as Canada Post remains at loggerheads with 55,000 workers amid strained negotiations and an overtime ban imposed by the union last month. Canada is not the only country struggling with falling mail volumes – a key factor in the impasse between the two sides – and DHL is among those feeling the pinch. In March it announced plans to cut 8,000 jobs in Germany this year, marking the largest set of layoffs in its home market in decades. Back in Canada, Duque Rai sought to frame the union's proposals as unreasonable. 'While we are committed to fair compensation for our employees, our position is that Unifor's demands – a 22 per cent salary increase for hourly employees, as well as a 42 per cent salary increase for owner-operators – do not reflect the current economic landscape and would jeopardize our operational viability,' she said. Payne said DHL has been seeking concessions since negotiations kicked off nearly a year ago. She highlighted a push by the company to change the pay model for owner-operators – roughly 500 independent contractors drive for DHL and also have union membership – in a way she claimed would reduce their compensation, not boost it. 'What we've seen over many months of bargaining are what I would say is an attempt to divide workers in classifications, pit one group against another, pit one region against another,' Payne said in a phone interview on June 8. A group of employers expressed concerns Tuesday about the effect of legislation passed under the previous Liberal government to ban replacement workers in federally regulated workplaces, pointing to DHL as the latest example of potential disruption. 'Canadians should prepare for more frequent and prolonged work stoppages that can impact supply chains, critical infrastructure and the broader economy,' said Daniel Safayeni, CEO of Federally Regulated Employers – Transportation and Communications, in a statement. The group called for a more 'balanced labour relations framework.' In contrast, labour groups have decried federal intervention in labour disputes over the past year, including strikes by railworkers, B.C. dockworkers and WestJet mechanics. Unifor has said its bargaining priorities with DHL revolve around wages, working conditions and surveillance and automation in the workplace.
