(Reuters) – The labor union represents Canadian Pacific Railway employees stated Friday that negotiations were difficult following a lockout notice by the company. They also said they are still not close to reaching an agreement.

Canada’s second-largest railroad operator, Canada, informed Teamsters Canada Rail Conference that it will lock out 3,000 employees, including conductors and engineers. The announcement was made Wednesday, in the absence of a breakthrough in negotiations on a contract covering pay and pensions.

Teamsters Canada stated that negotiations were difficult and parties are at odds. They also said that talks would resume in Calgary on Friday, with the help of a mediator.

Canadian Pacific, in an emailed statement sent to Reuters, stated that it was working to avoid a disruption in the labor market and would continue to negotiate in good faith to reach a negotiated settlement.

Thousands of workers from CP were threatened by striking this week. This could disrupt the flow of coal, grain and potash at a time when commodity prices are soaring.

According to the company, the major issue lies with the demand by the union for higher pension caps. However, the Teamsters have expressed concerns over pay and benefits.

An eight-day Canadian National Railway (TSX:) Co Strike in 2019 was the most recent major rail labor disruption. According to the Western Canadian Wheat Growers Association, 12 railway stoppages have occurred in 12 years. These were caused by poor weather conditions, labor problems, or blockades.