Canadian National (CN) and Canadian Pacific Kansas City (CPKC), Canada's two largest rail operators, locked out their 9,300 workers shortly after midnight Thursday.

In a first for Canada, freight traffic on the country's two largest railways has simultaneously ground to a halt, threatening to upend supply chains which are recovering from pandemic-related disruptions and a port strike last year.

The the two companies transport a combined $1 billion worth of freight every day, according to the Railway Association of Canada. Many shipments were already stopped a few days ago to avoid leaving cargo stranded.

The two companies and the unions bargained late into the Wednesday night but talks broke off shortly before midnight.

Each side has accused the other of failing to negotiate seriously.

 

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