Union contract dispute grinds Canadian railroads to a halt, threatens key US supply chain

A union contract dispute in Canada that resulted Thursday in the halt of freight railroad operations is threatening the country and the United States' supply-chain operations and respective economies.

Canadian government officials are now holding an urgent meeting to discuss the shutdown.

Railroads locked out their employees after the deadline for a new contract agreement with the Teamsters Canada Rail Conference union failed to pass at noon Thursday, the Associated Press reported.

The union represents about 10,000 engineers, conductors and dispatchers.

Contract negotiations are slated to resume Thursday. But In the meantime, all rail traffic in Canada and all shipments crossing the U.S. border have stopped.

The work shutdown has not impacted trains operated by the Canadian companies in the U.S. and Mexico.

The U.S. Department of Transportation reports that trade by rail between Canada and the U.S. each month amounts to billions of dollars.

The railroad companies promised to end the lockout if the union consents to binding arbitration.