BOTH of Canada’s major freight railway operations came to a halt today because of a contract dispute with their workers.

The confrontation could cause significant economic harm to businesses and consumers in Canada and the United States if the trains don’t resume running soon.

Canadian National (CN) and CPKC railways both locked out their employees after a deadline of midnight on Wednesday passed without new agreements with the Teamsters Canada Rail Conference, which represents some 10,000 drivers, guards and signalling workers.

All rail traffic in Canada and all shipments crossing the US border have stopped, although CPKC and CN trains will continue to operate within the US and Mexico.

National Association of Manufacturers president and chief executive Jay Timmons said: “If rail traffic grinds to a halt, businesses and families across the country will feel the impact.

“Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions.”

The union said: “Despite the lockout, the Teamsters remain at the bargaining table with both companies.”

CN had been negotiating with the Teamsters for nine months while CPKC had been trying to reach an agreement for a year, the unions said.

Business groups have urged the government to intervene, but Canadian Prime Minister Justin Trudeau has declined so far to force the two sides into arbitration.

Mr Trudeau said that Labour Minister Steven MacKinnon had met both sides in the CN talks in Montreal on Tuesday and would be on hand for the CPKC talks in Calgary, Alberta. Mr MacKinnon later said that he had wrapped up his meetings with the rail companies and the Teamsters.

“Workers, farmers, commuters and businesses can’t wait,” he posted on the X social media platform. “Canadians need urgency at the table. The parties need to get deals done now.”

The negotiations are stuck on issues related to rostering and concerns about rules designed to prevent fatigue among train crews and allow adequate rest. 

Both railways had proposed shifting away from the existing system, which pays workers based on the number of miles in a trip, to an hourly system that they said would make it easier to provide predictable time off.

The companies said their contract offers have included pay rises consistent with recent deals in the industry.

Train drivers make the equivalent of around £115,000 a year on CN, while guards earn £92,000, and CPKC says its wages are comparable.