Both CN Rail and CPKC announced Friday they will lock out Teamsters Canada Rail Conference (TCRC) workers as of Aug. 22, after Canada’s industrial relations board opted not to intervene in labor negotiations, paving the way for a strike.

“The decision to issue a lockout notice comes after the Canada Industrial Relations Board (CIRB) on Friday issued its decision determining that no services need to be maintained during a railway strike or lockout in order to protect Canadian public health and safety,” CPKC said in a statement. “The CIRB also ordered a 13-day extension of the cooling off period which ends on Aug. 22. Following the expiration of the cooling off period, a legal strike or lockout involving the TCRC – T&E or TCRC – RCTC could occur.”

The railway said a lockout will be less disruptive than a work stoppage during the fall peak shipping period.

CN followed suit, formally requesting the minister of labor’s intervention, citing a lack of progress in negotiations.

“While CN is willing to keep negotiating with the TCRC, the company has lost faith in the process and is concerned that a negotiated deal is no longer possible without a willing partner. Therefore, the company formally requests the Minister of Labor’s intervention,” CN said in a statement.

“Unless there is immediate and meaningful progress at the negotiating table or binding arbitration, CN will have no choice but to begin a phased and progressive shutdown of its network, starting with embargoes of hazardous goods, which would culminate in a lockout at 00:01 Eastern Time on Aug. 22.”

Business groups, meanwhile, decried the CIRB ruling that determined rail service to be non-essential.

The Canadian Chamber of Commerce wrote to Prime Minister Justin Trudeau and ministers, indicating “A concurrent or sequential work stoppage at both major railways will leave Canadians with access to fewer goods and products, driving up prices and exacerbating affordability challenges. A failure to act swiftly will also put the livelihoods of millions of workers in jeopardy.

“A disruption to our railway system will have an immediate impact on thousands of businesses from coast to coast and to commuters in several major urban centres. All of Canada’s ports, logistics and warehouse operators, and suppliers will be affected, while a prolonged stoppage will quickly lead to shortages of supplies for numerous industries, forcing businesses to suspend their operations and furlough their employees. Factoring in the millions of Canadian jobs that would be impacted, the magnitude of the disruption is daunting.”

The Chamber also indicated that Canada’s international reputation is at stake.

“A prolonged railway strike will also surely weaken Canada’s negotiating position in advance of the renewal of the Canada-United States-Mexico Agreement in 2026. A loss of confidence from our most important trading partner would take years to repair,” the chamber said on behalf of business groups, including trucking.