A labor board ruling has opened the door for a rail strike in Canada by August 22 if railroads and the union representing workers can't agree to a new labor deal.

Canada's Industrial Labor Board (CIRB) ruled on August 9 that there are no critical shipments that would be required to continue in the event of a strike. The CIRB also imposed a 13-day "cooling-off period" before any strike can begin. This came two days after Teamsters Canada Rail Conference (TCRC) resumed negotiations with Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) in Calgary alongside a federal mediator. 

On the same day that the CIRB issued its ruling, both CN and CPKC said that they had issued a notice to the union that they plan to lock workers out on August 22 if a deal hasn't been reached by then. 

"CPKC is acting to protect Canada’s supply chains, and all those who depend on them, from the more widespread disruption that would be created should a work stoppage occur during the fall peak shipping period," CPKC said in a news release. "Delaying resolution to this dispute only makes things worse, causing more disruption and damage to Canada’s international reputation as a reliable trading partner."

In a release from CN, the railway added that "no progress" was made after negotiations restarted in Calgary, claiming that the union "has not meaningfully engaged at the negotiating table."

TCRC responded hours later, stating that although the union is "committed to negotiating a new collective agreement," its members "must move forward and prepare" for a potential work stoppage on August 22.