TRENTON, Canada

Canada’s federal labor board ordered about 10,000 employees of the country’s two major railways back to work, Labor Minister Steve MacKinnon announced on X Saturday.

The highly-anticipated ruling ends the lockout imposed early Thursday by the Canadian National Railway (CN) and the Canadian Pacific Kansas City (CPKC) on members of the Teamsters Union. The two sides have been at the bargaining table since the end of 2023 but could not reach a new contract.

With about CAN$1 billion (US$740 million) goods carried by the two railways daily, a continuing strike would have not only dealt a debilitating blow to Canada’s economy but would also have a detrimental effect on the US economy.

MacKinnon stepped in and asked the Canada Industrial Relations Board to send the parties to binding arbitration and also to force the workers back on track while a new contract is negotiated. The ruling came from the board on Saturday and the arbitration negotiating process will begin on Aug. 28.

“The Canada Industrial Relations Board has issued a decision to impose final binding arbitration in the negotiations between CN Rail, CPKC and the Teamsters Canada Rail Conference,” MacKinnon posted on X Saturday. “I expect that the railway companies and employees will resume operations at the earliest opportunity.”

In a statement on its website, the Teamsters Union expressed displeasure with the ruling, but said that the employees will return to the jobs, adding that it will “also appeal the ruling to the federal court.”

“The rights of Canadian workers have been significantly diminished today,” said Paul Boucher, president of the Teamsters Canada Rail Conference.