05:45 AM EDT, 08/23/2024 (MT Newswires) -- Canada Labor Minister MacKinnon, late Thursday, ordered a contract dispute between railway companies and Teamsters Canada Rail Conference to be resolved in binding arbitration overseen by the Canada Industrial Relations Board, media outlets reported.

Canadian Pacific Kansas City ( CP ) and Canadian National Railway ( CNI ) had called for binding arbitration after negotiations with the Teamsters failed, prompting a lockout of 9,000 workers and a shutdown of the country's top two rail networks.

The Teamsters accused the government of making a "shameful decision" that gave into the rail companies' demands and said a strike would continue as it considered its options. "The two major railways in Canada manufactured this crisis, took the country hostage, and manipulated the government to once again disregard the rights afforded to working-class Canadians," the 130,000-member union said in a statement.

In separate statements, Canadian Pacific Kansas City ( CP ) praised the government's move but said it was dismayed by the union's refusal to order its workers to return to work and a possible move to challenge the minister's direction.

"CPKC is disappointed by this delay, which will affect our ability to resume serving the Canadian economy," the company said.

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