OTTAWA (Reuters) – Canada’s two main rail companies said on Friday they will lock out workers on Aug. 22 if talks to negotiate a labor contract fail, a move that would bring the country’s freight transport to a standstill.
A strike or lockout could cause significant economic damage in Canada, which is heavily dependent on the rail network given its vast geography and exports of grain, potash and coal.
Canadian Pacific (NYSE:) Kansas City, Canadian National Railway (TSX:) and the Teamsters union agreed last week to restart stalled contract talks with the help of a federal mediator.
Canadian National said in a statement that it had lost confidence in the negotiating process, citing the Teamsters’ reluctance to engage in meaningful talks, and formally requested Labor Minister Steven MacKinnon to intervene.
MacKinnon, who had previously urged both sides to continue talks, was not immediately available for comment.
The Teamsters, dissatisfied with the railroad companies’ proposals that they said could jeopardize safety, said they would receive 72 hours’ notice of any strike action.
CPKC previously said it would begin locking out workers on August 22 to protect Canadian supply chains from the widespread disruption that would occur if a work stoppage occurred during the fall shipping peak.
Teamsters spokesman Christopher Monette said the CPKC’s announcement was “unexpected and unnecessarily antagonizing” given that 13 days of negotiations remained before Aug. 22.
