The Federal Labour Board has ordered thousands of railway employees to return to work, at least temporarily resolving a major dispute that threatened supply chains in Canada.

The Canadian Industrial Relations Board imposed binding arbitration on the country's two main rail companies – Canadian National Railway CNR-T and Canadian Pacific Kansas City Ltd. CP-T – and the Teamsters Canada Rail Conference union, which represents nearly 10,000 railway workers.

The country's rail network closed at midnight last Wednesday when the Canadian railway company locked out employees after months of separate contract talks that failed to reach agreements.

Train crews and dispatchers at CPKC went on strike at the same time.

Labour Minister Steven MacKinnon ordered the Canadian Railway Review Board last Thursday to issue an order for the railway to resume operations, workers to resume their duties, and bargaining committees to enter into binding arbitration.

The Canadian Railway Review Board followed the minister's directives in its decision on Saturday, ordering Canadian Railway and CPKC to resume rail service, and workers to resume their duties, effective tomorrow, Monday.

The board extended the terms of the previous collective agreement, which expired in December, pending binding arbitration. A meeting to manage the case is scheduled for Thursday, August 29.

Mr. MacKinnon responded to the decision in a post on social media on X, stating, “I expect rail companies and employees to resume their operations at the earliest opportunity.”

The Canadian Industrial Relations Board issued a decision imposing final and binding arbitration in negotiations between CN Rail and CPKC and the Teamsters Canada Rail Conference.

I expect rail companies and employees to resume their operations at the earliest opportunity.

CPKC stated in a release that it will fully comply with the CIRB order and end its lockout in order to resume railway operations in Canada by midnight tonight, Sunday; however, the company expects it will take several weeks for its network to fully recover.

Additionally, “CPKC has requested TCRC to return employees to work for the day shift today, Sunday, so we can get the Canadian economy moving again as quickly as possible and avoid further disruption to supply chains.”

CN also stated that it will comply with CIRB orders. It said in a statement, “While CN is disappointed that an agreement was not reached at the bargaining table, the company is satisfied that this order effectively ends the unpredictability that has negatively impacted supply chains for several months.”

Christopher Monette, a spokesperson for Teamsters, said in an email yesterday, Saturday, that the union will comply with the CIRB decision but will also appeal the ruling in federal court.

In a statement, Paul Boucher, president of the Teamsters Canada Rail Conference (TCRC), said that the decision “sets a dangerous precedent” and reduces the rights of Canadian workers.