About 400 baggage handlers who work at airports in Toronto and Montreal are on strike after they failed to reach a new contract with Handlex.

The workers, represented by Teamsters, are responsible for the loading and unloading of baggage for several airlines, including Air Transat, Air France, British Airways and Swissair, at Pearson International Airport and Montreal's Trudeau and Mirabel airports.

They went on strike Tuesday at 8 p.m. after last-minute talks between Handlex, a subsidiary of Air Transat, and Teamsters officials failed. Employees picketed inside Terminal 3 at Pearson.

The workers rejected the final offer presented by Handlex management because they found it to be inadequate, the union says.

In a statement of its own, Handlex says it locked out the ramp and cargo services employees after the offer was rejected and the union declared a strike.

Handlex says a contingency plan was implemented immediately to ensure that operations and services to all airlines served by the company will not be disrupted.

All Air Transat flights, among others, are expected to operate normally, Handlex says.

Teamsters says the major sticking points are salaries and night and split-shift bonuses. These were the same issues during the last round of negotiations a year ago.

As of right now, management and union officials have no plans to head back to the bargaining table.

Teamsters claims managers and scabs could be brought in to replace Handlex workers.