Canada - Canada's two biggest railways, accounting for almost 80 percent of the national network, shut down early Thursday after talks with a union failed, immediately blocking arteries of North American supply chains that carry about $1 billion per day in trade.
 
More than 9,000 employees at Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) were locked out after a deadline elapsed early Thursday.
 
The two companies were unable to reach a deal with the Teamsters Canada Rail Conference (TCRC) after the union voted in favour of a strike over scheduling and ways to mitigate worker fatigue.
 
In a statement, a spokesperson for CN said it has consistently made offers to improve wages and rest time, including a final offer to avoid a lockout.
 
"The TCRC have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy," the spokesperson said.
 
TCRC president Paul Boucher said the main obstacles to reaching an agreement remain the companies' demands, not union proposals.
 
"Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy," he said in a statement.
 
A CPKC spokesperson said the TCRC continues to make unrealistic demands that would fundamentally impair the railway's ability to serve its customers.
 
"We fully understand and appreciate what this work stoppage means for Canadians and our economy," the spokesperson said in a statement.
 
The stoppage may cost Canada as much as $341 million per day, according to a Wednesday estimate from ratings agency Moody's Corporation.
 
As the deadline approached, business groups and rail-dependent industries from automakers to agriculture had issued dire warnings about the economic damage, which could mean plants cutting shifts or shuttering, as well as longer term injury to Canada's trading relationships and reputation for reliability, following other recent disruptions to its transportation networks.
 
Shippers had already diverted some cargo to the United States ahead of the strike.
 
Certain crucial major Canadian commodities like fertilizer, grain, and lumber need rail to move and can't be transferred onto trucks at scale.
 
The stoppages will also cause upset for Canadian city commuters.
 
U.S. Transportation Secretary Pete Buttigieg said Monday that his department had been monitoring the situation closely and tracking the flow of vital goods to the US.
 
It's the first time in decades workers at both companies walked out simultaneously, and the lead-up prompted urgent questions for the federal government.
 
Labor Minister Steven MacKinnon denied Cn's request to impose binding arbitration on 15 Aug 2024, and encouraged parties to reach a deal at the bargaining table.
 
The minister also met with the parties and federal mediators on Tuesday and Wednesday.
 
Prime Minister Justin Trudeau's government is propped up by a deal with the pro-labor New Democratic Party, whose leader Jagmeet Singh had said he would oppose government measures to intervene on behalf of employers against workers.
 
Thomas Seal.