DHL Express, parcel workers’ union reach deal on 4-year contract

Preliminary agreement avoids potential strike threatened by Teamsters

DHL Express provides international parcel transportation. U.S. delivery workers had threatened to go on strike without a new contract. (Photo: Jim Allen/FreightWaves)

(Updated 11:50 a.m. with DHL statement)

Negotiators for DHL Express in the United States and the Teamsters, which represents thousands of package drivers and warehouse workers in 16 states, on Sunday reached a tentative agreement on a new labor deal two days before a strike deadline, the union announced.

The current national master agreement between the company and the union is set to expire on March 31. Teamsters members last month authorized union leaders to call a strike if no contract was agreed on by that date. The resolution spares businesses from any potential disruption to their shipments.

“Our members at DHL held management’s feet to the fire and demanded a contract that recognizes the hard work they perform every day,” said Teamsters General President Sean M. O’Brien in a news release. “This agreement sets a new benchmark at the company and proves once again that no one fights harder for workers in the delivery and logistics industry than the Teamsters Union. With our members ready to take action, we secure real gains and force corporations to respect the people who make their profits possible.”

The new four-year agreement includes a 20% wage increase, higher health and welfare contributions, and critical job protections, according to the union. It also establishes robust safeguards against AI-driven routing systems that undermine seniority and explicitly prohibits the use of autonomous vehicles that threaten driver jobs.

DHL Express also expressed satisfaction with the outcome.

“We believe that fostering a collaborative and respectful relationship with our employees and their representatives is key to our continued success. We have worked diligently to reach a fair agreement that reinforces our commitment to delivering reliable, high-quality service to our customers,” DHL Express said in an emailed statement.

DHL Teamsters members will vote to approve the agreement in the coming weeks, the union said.

“I’ve worked at DHL for 26 years, and this is by far the best contract we’ve ever negotiated,” said Eric Camarena, a DHL dockworker and Teamsters Local 986 shop steward. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com