Canada’s two major freight railroads have resumed operations after being shut down for four days and disrupting the North American supply chain.

On Saturday, the Canada Industrial Relations Board (CIRB) ordered employees of Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC) to return to work on Monday after both companies locked out their workers on Thursday morning due to a contract dispute with the Teamsters union.

At the urging of both companies, as well as the U.S. Chamber of Commerce and Canadian Chamber of Commerce, the independent labor tribunal has imposed binding arbitration on all parties involved.

  • The order extends the current collective agreement until a new agreement is signed between the parties.


“The CIRB order ends months of unnecessary uncertainty and disruption for the Canadian economy and North American supply chains,” CPKC said in a press release. “We anticipate it will take several weeks for the railway network to fully recover from this work stoppage and a period of time beyond that for supply chains to stabilize.”

Although the Teamsters, which represents more than 9,000 workers affected by the shutdown, has complied with the decision, the union says it will also appeal the ruling to federal court.

“This decision by the CIRB sets a dangerous precedent,” says Paul Boucher, president of the Teamsters Canada Rail Conference. “It signals to Corporate Canada that large companies need only stop their operations for a few hours, inflicting short-term economic pain, and the federal government will step in to break a union. The rights of Canadian workers have been significantly diminished today.”

What Led To The Shutdown?

The shutdown was expected to wreak havoc on both the Canadian and United States economies, as nearly a third of the freight handled by the two railroads crosses the U.S.-Canadian border, CNN reported.  

  • Lasting just four days long, the work stoppage may have already caused more than $300 million (407 million Canadian dollars) in economic damage, according to the Anderson Economic Group, a research firm that specializes in estimating the economic impact of work stoppages.  


All parties involved were aware that a shutdown was likely to happen: CPKC had been negotiating with the Teamsters for nearly a year and CN had been trying to reach an agreement for nine months, The Associated Press reported. 

The labor dispute is largely over wage increases, scheduling and demands for better work-life balance, according to the union and companies.

  • After Canada introduced new duty and rest period rules in 2023, CN wanted to increase shift durations from up to 10 hours a day to up to 12 hours a day, Reuters reported.
  • As expected, the Teamsters rebuffed.


Without an agreement or binding arbitration, CN says it had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.

“Over the last nine months, CN has negotiated in good faith,” CN said in a press release. “The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy. We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires.”