Industry and shippers brace for Canada rail stoppage, fear 'catastrophe'

OTTAWA - North American industry groups and shippers are bracing for an unprecedented simultaneous stoppage at both of Canada's main railway companies that could inflict billions of dollars' worth of economic damage.

The rail companies say they will start locking out workers on Aug. 22 if they cannot reach a labor deal while the union says it is ready to call a strike for that date. A stoppage would also hit the United States, given the degree of integration between the two economies. Canada sends around 75% of all goods exports south of the border. The networks of the two Canadian rail operators, CN and CPKC, connect with several key U.S. rail and shipping hubs such as Chicago, New Orleans, Minneapolis and Memphis.

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