Multinational import-export company DHL Express is moving to indefinitely suspend its shipping operations in Canada, effective midnight, Friday (June 20).

DHL Express, in a statement, noted that due to ongoing labour actions in Canada and the implementation of new Bill C-58 legislation, it is ‘restricted’ from deploying meaningful contingency solutions.

Bill C-58 forms part of the Mark Carney government’s efforts to reform employment and social development in Canada. The act, which is set to take effect on Friday (June 20), amends the Canada Labour Code and Industrial Relations Board Regulations.

“As a result, we will have to cease the collection of shipments destined to or dispatched from Canada as of Tuesday, June 17 at 21:00 ET (Eastern Time) until further notice,” the company advised.

“We apologise for any inconvenience that this causes for you and your operations and would like to take this opportunity to emphasise that we are doing everything we can to reactivate normal service to and from Canada as soon as possible,” added DHL Express.

DHL further explained that services by its other business units in Canada – DHL Global Forwarding and DHL Supply Chain – as well as the inbound delivery of shipments for DHL eCommerce and Post & Parcel Germany, are not impacted by this change.

As Unifor, Canada’s largest private sector union, stages industrial actions following failed negotiations with the Germany-based shipping giant, DHL Express lamented insufficient progress in reaching “a new collective agreement”.

“Additionally, the recent implementation of new legislation in Canada prevents DHL Express from activating any contingency measures to mitigate the impact of the labour action that the union has decided to take to support its negotiating position,” the company continued.

DHL Express reiterated its willingness to resume discussions with Unifor to reach a new collective agreement that provides fair compensation to team members while ensuring a sustainable, long-term foundation for Canadian operations.

“We remain committed to the process and hope to reach an agreement soon that allows us to resume the provision of the high-quality of service our customers have come to expect of DHL,” said the company.