Written by Promit Mukherjee
OTTAWA (Reuters) – Canadian National Railway (TSX:), one of Canada’s two main rail companies, formally notified the Canadian Truck Drivers Union on Sunday that it will begin locking out workers at the union early on Thursday morning.
“Unless an immediate and decisive solution to the labour conflict is found, the national railway company will have no choice but to continue the gradual closure of its network, which could culminate in a shutdown,” the company said in a statement.
“Despite the negotiations that took place over the weekend, there has been no tangible progress, and the parties remain very far apart.”
Canada’s other major railway operator, Canadian Pacific (NYSE:) Kansas City has already notified its truckers union that it will begin closing its doors to members as early as Thursday. That means the vast majority of rail freight transportation in Canada will be halted by Thursday unless last-minute labor agreements are reached between companies and their truckers union affiliates.
Separately, truck drivers also issued a 72-hour strike notice to the CPKC late Sunday.
“If the parties do not reach last-minute agreements, work will stop at 00:01 on Thursday, August 22,” it said in a statement.
Companies and unions accuse each other of bad faith in the talks. Truck drivers say China Railway and China Railway are demanding concessions that would put workers’ safety at risk, a charge both operators deny.
The federal Liberal government has so far rejected business groups’ requests to intervene, saying it wants companies and unions to resolve their differences through negotiations.