Trains across the country have ground to a halt as 9,300 workers were locked out by both of Canada’s major railways after they failed to agree on a new contract before a 12:01 a.m. EDT deadline.
The shutdown marks the first ever simultaneous work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).
The Railway Association of Canada says the shutdown puts a halt to about $1 billion in goods traffic each day, some of which was pre-emptively stopped to avoid having cargo stranded in the event of a stoppage.
Transit authorities have said select commuter lines that run on CPKC tracks in Toronto, Montreal and Vancouver will be suspended.
Canada’s two main rail companies were locked in simultaneous and tense bargaining with the Teamsters union for days before the Aug. 22, 12:01 a.m. ET deadline passed.
Rail traffic controllers at CPKC will continue work until 2:01 a.m. ET, the company says.
The companies said they would start locking out workers in the early hours of Thursday if they couldn’t reach a deal with the union representing 9,300 engineers, conductors and yard workers.
The Teamsters Canada Rail Conference (TCRC), which represents workers from both railways, has demanded better wages, benefits and working conditions.
“The main obstacles to reaching an agreement remain the companies’ demands, not union proposals,” a release from the union said. “Neither CN nor CPKC has relented on their push to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues.
“CN also continues to demand a forced relocation scheme, which could see workers ordered to move across the country, tearing families apart in the process,” the union said in a statement.
CPKC released a statement saying the union is to blame for the failed negotiations, citing “unrealistic demands” that would hinder the company’s ability to serve its customers reliably.
CN said its offer included better pay, among other benefits, however the company also pointed the finger at the union for not reaching a deal.
“Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout,” a statement from the railway said.
The Canadian Chamber of Commerce, the Business Council of Canada, the Canadian Federation of Independent Business, and the Canadian Manufacturers and Exporters issued a joint statement Wednesday calling on the federal government to take “immediate action” to keep trains and the goods they carry moving.