[Source: Reuters]

The union representing over 9,000 Canadian rail workers vowed on Friday to challenge the federal government’s effort to mandate binding arbitration that would end an unprecedented rail stoppage at both of the country’s main freight rail carriers.

The Teamsters union also filed notice to strike on Monday at Canadian National Railway (CNR.TO), opens new tab, Canada’s largest railway.

The union’s moves are the latest twist in labor disputes at CN and Canadian Pacific Kansas City (CP.TO), opens new tab, which locked out Teamsters members on Thursday, triggering a simultaneous rail stoppage that business groups said could inflict hundreds of millions of dollars in economic damage.

They further complicate the task of the Canada Industrial Relations Board (CIRB), which was meeting for hours on Friday with union and railway representatives, after the government asked it to end the impasse.

The Teamsters union on Friday night said the parties had concluded a day-long meeting, in which it argued that the government did not have absolute power to end the labor action. “The union will lawfully abide by any decision from the CIRB, and is prepared to file challenges in federal court if necessary,” it said.

Railroad CN in a statement said it would move forward with a recovery plan until a CIRB decision was issued.

Labour Minister Steven MacKinnon, citing the risk to the economy, also asked the board to impose binding arbitration on talks between the union and companies, and for operations at both railways to resume immediately.

Canada, the world’s second-largest country by area, relies heavily on trains to transport a wide range of commodities and goods.

The Canadian Chamber of Commerce said it was disappointed with the Teamsters’ decision to challenge the government’s directive.

“This action will prolong the damage to our economy and jeopardize the wellbeing and livelihoods of Canadians, including union and non-union workers across multiple industries,” the group said.