CN Rail issues lockout notice to union, halting rail freight across Canada found By Reuters

By Promit Mukherjee

OTTAWA (Reuters) – Canadian National Railway (TSX:), one of Canada’s two main rail companies, formally notified Canada’s Teamsters union on Sunday that it will begin locking out union workers early on Thursday.

“Unless there is an immediate and definitive solution to the labor dispute, CN will have no choice but to continue the gradual and progressive shutdown of its network, which would culminate in a gridlock,” it said in a statement.

“Despite negotiations over the weekend, no significant progress has been made and the sides remain very far apart.”

Canada’s other major rail operator, Canadian Pacific (NYSE: ) Kansas City, has already told the Teamsters union it will begin locking out members early Thursday. That means the vast majority of Canadian rail freight transit will stop until Thursday, barring last-minute labor agreements between the companies and their respective arms of the Teamsters union.

Separately, the Teamsters also issued a 72-hour strike notice to CPKC late Sunday.

“If the parties do not reach last-minute agreements, a work stoppage will take place on Thursday, August 22 at 00:01,” it said in a statement.

The companies and the union accuse each other of bad faith in the talks. Crews say CN Rail and CPKC are seeking concessions that could jeopardize worker safety, a charge denied by both operators.

The federal Liberal government has so far rejected calls from business groups to intervene, saying it wants the companies and the union to resolve their differences through negotiations.