“Workers, farmers, commuters and businesses depend on Canada’s rail every day and will continue to do so,” said McKinnon. “It is the government’s duty and responsibility to ensure industrial peace in this critical sector.”
Canada, the world's second-largest country by area, relies heavily on rail transportation.
The government said it supports the collective bargaining process while also exercising its authority under the Canada Labour Code to ensure that critical goods and trade continue to move.
The Canada Industrial Relations Board will resolve disputes over collective agreements under the order. In the meantime, the board will also extend the current terms of the collective agreement to allow workers to return to work as soon as possible.
The two railroads' labor contracts expired at the end of last year.
The CBC reported that after months of talks, the increasingly tense negotiations broke down late Wednesday evening, with both sides accusing the other side of refusing to negotiate seriously.
Both CN and CPKC have called for binding arbitration.
CN said on Thursday it was “satisfied” the labor dispute would be arbitrated.
The company added that it was “disappointed that despite our best efforts, we were unable to reach an agreement at the negotiating table.”
CPKC CEO Keith Creel said the government acted “to protect Canada's national interests.”
“We fundamentally believe in and respect collective bargaining and we regret that the government had to intervene. However, this situation requires action as it benefits everyone involved,” his statement added.
In an interview with the BBC on Thursday, before the mediation was announced, Francois Laporte, national president of the Canadian Drivers' Union, said the union's main issue was safety.
“We have trains that carry goods across Canada, we have trains that carry energy, we have trains that carry chemicals,” he said. “And we want to make sure that those trains are properly rested, safe, and run by people who aren’t tired.”
