By Allison Lampert

MONTREAL (Reuters) – The Canada Industrial Relations Board on Saturday decided to end work stoppages at the country’s largest railway companies, ending unprecedented service disruptions at both major freight carriers that threatened to batter Canada’s export-driven economy.

The independent labour tribunal made the decision after Canada asked it on Thursday to end the impasse in separate negotiations between more than 9,000 Teamsters members and Canadian National Railway (TSX:) and Canadian Pacific (NYSE:) Kansas City.

The Teamsters said in a statement that workers’ rights have been “significantly diminished” by the ruling and that they would appeal in federal court.

The board’s decisions are the latest twist in the labor disputes at CN and CPKC, which led to a lockout of Teamsters members on Thursday and a simultaneous shutdown of the railroad, which business groups say could cause hundreds of millions of dollars in economic damage.

Canada, the world’s second largest country by area, relies heavily on trains for the transportation of all kinds of goods and cargo.

Canadian Labour Minister Steven MacKinnon said on the social media site X that he expects “railway companies and workers to resume operations as soon as possible.”

The decision will see rail operations at CPKC, where workers have been both locked out and on strike, resume at 12:01 a.m. ET (04:01 GMT) on Monday, the railroad said in a statement.

A Teamsters spokesman said the workers would not return early, despite CPKC’s request for workers to return on Sunday.

“We expect it will take several weeks for the rail network to fully recover from the work stoppage and some time for supply chains to stabilize,” CPKC said.

The labor board’s decision averted a planned strike on Monday by engineers, conductors and other workers at CN in Montreal, just days after Canada’s largest railroad ended a lockout and began restoring service. The Teamsters confirmed that their CN workers would not strike on Monday following the CIRB decision.

In addition to the order to end the strike, the board also complied with government requests to impose binding arbitration on the parties to reach new agreements and to impose a continuation of existing contracts until new agreements are reached.

“This decision by CIRB sets a dangerous precedent,” said Paul Boucher, president of the Teamsters Canada Rail Conference. “It sends a message to business in Canada that all it takes is for large corporations to shut down for a few hours, cause short-term economic pain, and the federal government will step in to bust a union.”

A CN spokesman said the company would have preferred a negotiated agreement, but “we are pleased that this brings the strike to an end.”

The disruption could have major implications for farmers and agricultural businesses in both Canada and the United States.

Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents grain companies, said they had been urging the government for weeks to take the matter to the CIRB.

“It means the government has really listened to what Canadians have been telling them,” he said. “We cannot tolerate a self-inflicted wound to the economy.”

Mike Steenhoek, executive director of the U.S. Soy Transportation Coalition, said the Canadian government needed to step in to help farmers who rely on smooth cross-border trade.

“We haven’t taken sides between railroads and railroad workers,” Steenhoek said. “But we do stand with the American farmer.”

On Thursday, MacKinnon said his decision to take the matter to the CIRB would survive a trial, given its broad powers under the country’s labor laws.

The Teamsters union wants its members’ working conditions and pay to be determined by negotiation, despite disputes with CN and CP over scheduling, shift length and availability. For example, CN wants workers to work up to 12 hours per shift, up from 10 hours under the current agreement, a measure the union opposes.