It marks the first time that the country has faced a simultaneous labor stoppage at the railroad firms as they normally negotiate their labor agreements in alternate years.
The stoppages could cripple the shipment of food grains, beans, potash, coal and timber which form a large part of Canada’s exports, while also impacting shipments ranging from petroleum products to chemicals and cars.
In addition to billions of dollars of economic damage, the stoppages could disrupt rail trade across the North American continent.
Rail operators claim that talks with unions heralded “no real progress” over the weekend, so authorized the lockout after months of meetings over new contracts for unionized workers. The rail operators say they have made multiple contract offers that address issues like “wages, rest, and labor availability,” reports Reuters. However, the union is opposed to measures that it says could force workers to move across Canada with minimal notice in order to fill labor shortages.