National rail shutdown begins as employees locked out at both major Canadian railways

Developing coverage: Aug. 22 updates here

MONTREAL -- 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 and Canadian Pacific Kansas City and threatens to upend supply chains.

The companies haul about $1 billion in goods each day combined, the Railway Association of Canada says, some of which was pre-emptively stopped to avoid having cargo stranded.

Transit authorities have said select commuter lines that run on Canadian Pacific tracks in Toronto, Montreal and Vancouver will be suspended.

Business groups have demanded the government step in by imposing binding arbitration and barring strikes and lockouts as the process plays out.

Prime Minister Justin Trudeau on Wednesday had called on both sides to work out a deal at the bargaining table.

Affected industries include agriculture, mining, energy, retail, automaking and construction.

Ports fear containers will pile up on the docks as cargo goes unmoved, causing congestion down the line and prompting some carriers to reroute to U.S. terminals.

More than 32,000 rail commuters across the country will also have to find new routes to the office.

Lines affected by the potential work stoppage are TransLink’s West Coast Express in the Vancouver area, Metrolinx’s Milton line and the Lakeshore line's Hamilton GO station in the Greater Toronto Area, and Exo’s Candiac, Saint-Jérôme and Vaudreuil/Hudson lines in the Montreal area.

This report by The Canadian Press was first published Aug. 22, 2024.