Labour unrest has hit the Canadian delivery sector once again, as DHL Express Canada locked out 2,100 of its workers shortly after midnight following failed contract negotiations with Unifor. The union, which represents truck drivers, couriers, and warehouse employees across seven provinces, responded swiftly by launching a nationwide strike at 11 a.m. Eastern Time.

The dispute stems from proposed changes to the driver pay system and the company’s intention to bring in replacement workers ahead of federal legislation banning them, which is set to take effect on June 20. The standoff adds another layer of disruption to Canada’s already strained parcel delivery network, with Canada Post also grappling with labour tensions. Last month, Canada Post workers introduced an overtime ban that has significantly slowed parcel services nationwide.

Unifor warned that the DHL work stoppage could have ripple effects on major events, including next weekend’s Formula One Canadian Grand Prix in Montreal, where the company is tasked with transporting high-performance race cars. The union’s key demands include fair wages, improved working conditions, and clearer policies around surveillance and automation in the workplace.

As negotiations stall and operations grind to a halt, Canadians relying on parcel services now face further uncertainty in a sector already under pressure.