This story originally appeared on Trains.com.

OTTAWA – The Canada Industrial Relations Board has cleared the way for a potential rail strike that could begin as soon as Aug. 22 if the Canadian railways can’t reach an agreement with the union that represents train crews.

The CIRB ruled today that a work stoppage on Canadian National and Canadian Pacific Kansas City would not cause an immediate threat to public health and safety. The agency had put a potential strike on hold while it evaluated whether certain commodities must keep moving during a strike or lockout.

The Teamsters Canada Rail Conference cheered the decision. “The decision aligns with what the Teamsters, CN, and CPKC have long maintained: there is no need for essential services in the event of a work stoppage in the rail industry,” the union said in a statement. 

“Workers’ right to strike had been temporarily suspended pending today’s decision by the CIRB. This effectively robbed the union of leverage,” the TCRC said. “Absent the threat of a work stoppage, neither company had been willing to compromise or show any flexibility in their demands. With this decision, if a negotiated settlement cannot be reached, the earliest a work stoppage at CN and CPKC can occur is August 22nd, at 00:01.”

The union said it would provide a 72-hour advance notice of a strike action, as required, if no contract agreement is reached. TCRC represents engineers and conductors on both railways, as well as rail traffic controllers on CPKC. A strike would affect commuter operations in Vancouver, Toronto, and Montreal, which rely on CPKC dispatchers.

The railways resumed separate contract talks with union representatives on Wednesday, following a meeting on Monday with Canada’s labor and transport ministers. The talks were held with the assistance of federal officials.

CN and CPKC have said they hope to avoid a strike and reach negotiated settlements with the TCRC.

The union says the main sticking points at the bargaining table are company demands, not union proposals. The union claims that both railways want concessions on crew scheduling, rail safety, and fatigue management.

“Since the beginning of negotiations, CN’s goal has always been and continues to be to negotiate in good faith with the Union to reach a mutually beneficial agreement that maintains safety and stability for its team, customers, and North American supply chains. CN has made multiple offers to the TCRC that we believe address employee issues,” the railway said in a statement on Tuesday.

“CPKC has made two distinct offers to the TCRC, both of which provide significant benefits for our employees and fully comply with new regulatory requirements for rest. They do not in any way compromise safety. To say or suggest otherwise is patently false,” CPKC said on Monday.

The railways did not immediately comment on the CIRB’s decision.

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