MONTREAL, QC — Business and consumers across Canada and the U.S. could suffer significant economic harm with Canada's major freight railroads at a full stop Thursday over a contract dispute with their workers.

The patience of Canadian government officials appeared to be wearing thin as they weighed intervening. Canadian National and CPKC railroads locked out their employees after the 12:01 a.m.

EDT deadline Thursday passed without new agreements with the Teamsters Canada Rail Conference, which represents nearly 10,000 engineers, conductors and dispatchers. Contract talks resumed Thursday morning as workers picketed outside closed doors. All rail traffic in Canada and all shipments crossing the U.

S. border have stopped, although CPKC and CN’s trains continue operating in the U.S.

and Mexico. Billions of dollars of goods move between Canada and the U.S.

via rail each month, according to the U.S. Department of Transportation.

Many companies across all industries rely on railroads to deliver their raw materials and finished products, so without regular rail service they may have to cut back or even close. Both railroads said they would end the lockout if the union agrees to binding arbitration. The head of the Teamsters Canada Rail Conference blamed the railroads in a post to X .

“They are now holding the Canadian economy hostage to try and pressure the liberal government to impose final binding arbitration and take your rights away to free collective bargaining,” said un.