Rail companies, union resume talks as lockout shuts down both major railways

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MONTREAL — Contract talks resumed Thursday after Canada's two largest railways locked out their employees overnight in what is an unprecedented shutdown of freight traffic across the country.

MONTREAL — Contract talks resumed Thursday after Canada's two largest railways locked out their employees overnight in what is an unprecedented shutdown of freight traffic across the country.

Each side has accused the other of failing to talk seriously, while both railways have called for binding arbitration, which the union has rejected. The union has said both companies are pushing to weaken protections around rest periods and scheduling. It adds that CN is also seeking a scheme that would see some employees move to far-flung locations for several months at a time to fill labour gaps.

"The rail shutdown at CN and CPKC is already costing workers, transit users and businesses across the country, and we cannot afford to let things get worse," Ontario Premier Doug Ford posted on X on Thursday morning.The regional transit system for southern Ontario’s Golden Horseshoe region said rail service was suspended at Hamilton GO Centre and on the Milton line, which cuts through Mississauga to Toronto’s downtown Union Station.

Business groups have demanded that Ottawa step in by imposing binding arbitration and barring strikes and lockouts as that process plays out. Moody's warned that the work stoppage could cost the Canadian economy $341 million per day, with agriculture, forestry and manufacturing among the hardest-hit sectors.

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