OTTAWA, ONTARIO, CANADA — The Canada Industrial Relations Board (CIRB) on Aug. 24 made a ruling that put an end to brief work stoppages at the country’s two largest rail carriers and imposed arbitration in the ongoing dispute between the Teamsters Canada Rail Conference (TCRC) and Canadian National (CN) and Canadian Pacific Kansas City (CPKC).

Hours after both railways fully suspended operations late last week, Canadian Minister of Labor Steven Mackinnon ordered the CIRB to implement binding arbitration, extend collective agreements, and resume operations.

“The board has concluded that, in this case, it has no discretion or ability to refuse to implement, in whole or in part, the minister’s directions or to modify their terms,” CIRB Chairperson Ginette Brazeau wrote in a pair of rulings

Brazeau ordered the companies, and the more than 9,000 union workers impacted, to resume operations starting at 12:01 a.m. on Aug. 26.

In a letter to union members, Paul Boucher, president of the TCRC, said the workers would return to work but the CIRB ruling would be challenged.

“The TCRC is extremely disappointed in the recent CIRB decisions,” he said. “Rest assured, we will be challenging these rulings in court.”

He added that the CIRB decision sets “a dangerous precedent.”

“It signals to corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain and the federal government will step in to break a union,” Boucher said. “The rights of Canadian workers have been significantly diminished today.”

The union and companies said the labor disagreement has been mostly related to issues of scheduling, availability of labor and demands for a better work-life balance.

More than 90% of agricultural products, particularly grains and oilseeds, move by rail in Canada. In 2023, 25% of all value derived from Canada’s agricultural and related product exports to the United States were by rail, averaging over $40 million per day, according to the Foreign Agricultural Service of the US Department of Agriculture.

Grain handling and other industry groups had urged the Canadian government to prevent a stoppage, noting Canada’s railways transport about C$380 billion ($279.5 billion) worth of goods annually.