Canadian Pacific Railway maintenance workers across the country have walked off the job, demanding a 13 per cent wage increase over three years.
A strike deadline passed early Wednesday morning at 2 a.m. ET, with the Teamsters Canada Rail Conference unable to reach a deal with Canadian Pacific.
The walkout, which is the second strike this year at one of Canada's national railways, affects roughly 3,200 employees, including 1,200 track inspectors.
In their place, CPR officials said they will send about 1,300 trained management employees to cover their tasks. The company has predicted the deadlock and strike will have a minimal effect on business.
For most of the picketers, the key issue is the wages, Teamsters union leader William Brehl said.
CPR has repeatedly rejected the union's demand for a 13 per cent raise over three years and the two sides will not likely return to the bargaining table in the next few days, Brehl said.
In a statement on its website, CPR says it was offering a 10 per cent increase over 3 years and improved benefits.
One economist for a group representing Canadian businesses said the strike will mean some firms will elect to ship their goods through the United States instead of across Canada.
"That is going to affect some investment decisions here," Jayson Myers, chief economist with the Canadian Manufacturers & Exporters, told CBC News. "We can't afford to see continuing series of strikes in our transportation sector, and then pretend that we have an efficiently working logistics system here in Canada."
On the TSX, shares of CPR rose $1.90 to end at $75.82.
The CPR strike comes after Canadian National Railway conductors and yard workers walked off the job for two weeks in February. That dispute is currently before a mediator.
With files from the Canadian Press
