A group of business associations is calling on the federal government to prevent work stoppages at Canada’s two largest rail companies.

A phased shutdown of networks at Canadian National Railway and Kansas City Southern Canada has already begun as contract negotiations with the Teamsters Canada Rail Conference approach.

Unless deals are reached, rail service at both companies is set to cease at 12:01 AM Eastern Time on Thursday.

In a joint statement issued on Wednesday, the Canadian Chamber of Commerce, the Canadian Business Council, and the Canadian Federation of Independent Business and Canadian Manufacturers & Exporters said Ottawa needs to act to ensure rail services continue.

They emphasized that the federal Labour Minister can refer the dispute to the Canada Industrial Relations Board for binding arbitration and prevent a strike or lockout or end any ongoing stoppage while awaiting resolution.

Alternatively, business groups suggest that the government use back-to-work legislation.

Labour Minister Steven MacKinnon has repeatedly stated that the parties must reach an agreement themselves rather than relying on federal intervention, such as back-to-work legislation.

Experts say that the strike involving a total of 9,300 employees at both CN and KCS would be unprecedented, marking the first simultaneous work stoppage ever at the largest rail companies in the country.

According to the Canadian Railway Association, their trains move goods worth a billion dollars daily, from canola seeds to consumer electronics.

U.S. railways CSX and Norfolk Southern have closed their doors to most cross-border shipments, while major shipping companies like Hapag-Lloyd have put "contingency plans" in place as others redirect their cargo.

More than 32,000 rail passengers across the country will also have to find new ways to their offices if a work stoppage occurs at KCS.

Transportation authorities stated that select passenger lines operating on KCS routes in Toronto, Montreal, and Vancouver will be suspended in the event the workers choose to walk off the job.

Passenger lines likely affected by a potential work stoppage include the West Coast Express line operated by TransLink in the Vancouver area, the Milton line operated by Metrolinx and the Hamilton GO station on the Lakeshore line in the Greater Toronto Area, and the Candiac, Saint-Jérôme, and Vaudreuil/Hudson lines operated by Exo in the Montreal area.