TORONTO — The Canadian arbitrator appointed to resolve a complex rail labour dispute to protect the North American economy has ordered employees at the country's two major railway companies back to work so both can resume operations.

The Teamsters union, which represents the workers, said Saturday it would comply with the order and return its members to their jobs, but would also continue its legal challenge.

“This decision by the CIRB sets a dangerous precedent. “It sends a signal to Canadian businesses that big companies only have to shut down for a few hours, inflict short-term economic hardship and the federal government will step in to dissolve a union,” said Paul Boucher, president of the Teamsters Railway Conference Canada, representing more than 9,000 engineers, drivers and dispatchers.

“The rights of Canadian workers have been significantly reduced today,” Boucher added.

The order is expected to allow Canadian National trains to continue running and help Canadian Pacific Railway Kansas City Ltd. resume operations.

Both railways said they would follow orders from the Canada Industrial Relations Board. Canadian National trains resumed running Friday morning, but the Canadian Railway Teamsters Conference threatened a strike starting Monday morning. CPKC workers have been on strike since the lockout began Thursday morning, and the company's trains have remained idle.

Union leaders said they would “work within the law” while questioning the constitutionality of the arbitration decision, announced by the government on Thursday afternoon to avoid potentially disastrous consequences for the economy.

Companies in Canada and the United States have said they would quickly face a crisis without rail service because they rely on freight railways to deliver their raw materials and finished goods. Without regular deliveries, many companies could have to reduce production or even close their doors.

Originally published: August 24, 2024 at 5:40 p.m.