Effective Thursday morning, Canada National Railway (CN) and Canadian Pacific Kansas City (CPKC) have officially locked out all Teamsters Canada Rail Conference (TCRC) rail workers, leading to an indefinite work stoppage. The work stoppage comes after nearly a year of negotiations between Canada’s two largest railways and the rail workers’ union. Both CN and CPKC recently started scaling back their operations in anticipation of the lockout.

Both sides continued negotiating throughout the week, but were unable to come to a suitable agreement. TCRC says they submitted multiple offers this week, but they were all rejected.

“Over the past several days, the Teamsters have put forward multiple offers, none of which were seriously considered by either company,” TCRC said in a statement on its website.

While wages were a major point of contention between the sides, TCRC says safety and scheduling concerns were at the center of the disagreement.

“Neither CN nor CPKC has relented on their push to weaken protections around rest periods and scheduling, increasing the risk of fatigue-related safety issues,” TCRC said. “CN also continues to demand a forced relocation scheme, which could see workers ordered to move across the country, tearing families apart in the process.”

The railways both claim to have offered highly competitive wages and improved hours for the workers.

“This offer improved wages and would have seen employees work less days in a month by aligning hours of service in the collective agreement with federally mandated rest provisions,” CN said in a statement. “The offer also proposed a pilot project for hourly rates and scheduled shifts on a portion of the network as CN continues to believe this is a better and more predictable framework for our employees.”

CPKC offered a similar sentiment, saying they spent the past year negotiating in good faith, but were consistently rebuffed by TCRC.

“The TCRC leadership continues to make unrealistic demands that would fundamentally impair the railway’s ability to serve our customers with a reliable and cost-competitive transportation service,” CPKC said.

TCRC says they remain at the bargaining table with the railway in spite of the lockout. If no agreement can be reached, CPKC says binding arbitration would be the next path forward to resolve any outstanding disputes.

“CPKC reiterates its standing offer to resolve this matter through binding arbitration,” CPKC said. “Acceptance of that offer by the TCRC would immediately end this work stoppage and mitigate further harm and disruption to supply chains and our economy.”

For more information on the negotiations and recent events, please click here.