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Teamsters Canada Rail Conference members picket outside the CPKC headquarters in Calgary, Alta., Friday, Aug. 23, 2024. (Jeff McIntosh/The Canadian Press via AP)

Back-to-work order issued for 2 major Canada railroads. Union will comply, but lawsuit planned

The Canadian arbitrator appointed to resolve a messy railroad labor dispute to protect the North American economy has ordered employees at the country’s two major railroads back to work so both can resume operating

By JOSH FUNK and ROB GILLIES
Published - Aug 24, 2024, 08:22 PM ET
Last Updated - Aug 24, 2024, 08:22 PM EDT

TORONTO (AP) — The Canadian arbitrator appointed to resolve a messy railroad labor dispute to protect the North American economy has ordered employees at the country’s two major railroads back to work so both can resume operating.

Saturday's order means Canadian National will be able to continue operating the trains it restarted Friday morning just over a day after it locked out workers. But Canadian Pacific Kansas City likely won't be able to restart its operations before 12:01 a.m. Monday, when workers were ordered to return.

Railroads play a crucial role in the economy with CPKC and CN delivering more than CA$1 billion (US$730 million) worth of shipments a day and carrying billions of dollars of goods between the U.S. and Canada every month. Even though both companies' trains in the United States and Mexico continued operating, the lockouts caused a significant disruption. A number of smaller short-line freight railroads that handle local deliveries continued operating across Canada but were unable to hand off shipments to either of the major railroads while they were idle.

The Teamsters union representing workers said that it will comply with the Canada Industrial Relations Board order and send its members back on the job, but it will also move forward with a legal challenge of the arbitration order.

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