Canadian National Railway Co. workers have gone on strike after failing to reach an agreement on Saturday over benefits and wages, according to the International Brotherhood of Electrical Workers lead negotiator. 

The strike of 750 signals and communications workers began at 11 a.m. on Saturday after negotiations failed, Steve Martin said by phone. The union had given a 72-hour strike notice to the company on June 15. The two sides are still in discussions, he said. 

“CN has implemented its operational contingency plan,” the company said in an email. “Rail operations continue safely and at normal levels.”

The strike could worsen logistical bottlenecks that have happened as a result of the COVID 19 pandemic, contributing to higher prices. Canada’s inflation rate is expected to reach a 40-year high when Statistics Canada reports consumer prices next week, according to a Bloomberg survey of economists. The rail company is one of two in Canada that transport goods throughout the country and into the U.S.