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The Canadian railway system has been struck with two major work stoppages amid failed labor negotiations Aug. 22.

Prime Minister Justin Trudeau is urging Canada’s two largest railways and unionized workers to reach a deal to avert a strike that businesses warn will cause significant harm to the economy.

Canadian businesses are warning about potential long-term damage to the economy if railway and port strikes go ahead and choke the country’s vital trading arteries.

Canadian National Railway Co. issued a formal notice Aug. 18 that union-affiliated workers will be locked out in the coming days if a labor agreement is not reached.

The Canadian government has denied an arbitration request by Canadian National Railway Co., increasing the likelihood of a nationwide work stoppage by thousands of its unionized workers.

The ruling found that a work stoppage between the Teamsters and rail companies would not pose an immediate threat to public health and safety, meaning a strike could occur as soon as Aug. 22.

Canadian National Railway amped up pressure on the Teamsters Canada Rail Conference to resolve an ongoing labor dispute with potentially wide-ranging impacts across North American supply chains.

Canadian National Railway is sticking with its outlook for double-digit profit growth over the next few years, moving past a 2023 marred by labor strife, low grain shipments and a sluggish economy.

Canadian National Railway Co. spelled out a challenging picture for the economy as earnings fell short of expectations in the third quarter, partly due to falling demand for consumer goods.

Canadian National Railway Co. reported revenue of C$4.06 billion ($3.1 billion) in the second quarter, down 7% and missing analysts’ estimates.