Update Aug. 23, 11:45 am CDT - Hopes for the resumption of Canadian freight rail service were dashed Friday morning when the Teamsters Canada Rail Conference announced plans to sue the government. Specifically, they are challenging the constitutionality of the federal government’s decision to force railroads and workers to accept binding arbitration.

Additionally, the TCRC announced workers at Canadian National would go on strike within 72. That news comes less than a day after the union announced workers at CN would return to work.

Meanwhile, the work stoppage at Canadian Pacific Kanas City railroad continues unabated for now.

Aug. 23, 8:00 a.m. CDT - It took less than a day for the Canadian government to determine shutting down a rail network might be a bad thing. Late Thursday afternoon, around 17 hours after the work stoppage began, Canadian Labor Minister Steve MacKinnon ordered everyone back to work. McKinnon also ordered the Canadian Industrial Relations board to impose binding arbitration on the nation’s two largest freight carriers and its workers.

This is the latest twist in the ongoing saga pitting Canadian National and Canadian Pacific Kansas City railroads against 9,000 Teamsters workers. For months, the two sides have battled over the terms of a new agreement. Early Thursday, Canada’s two largest rail carriers announced they were locking employees out before the workers could go on strike.

Teamsters Canada Rail Conference president Paul Boucher accused the two rail companies of manufacturing a crisis. He said it was a tactic to manipulate the government into disregarding the rights of Canadian workers.

“By resorting to binding arbitration, the government has allowed CN and CPKC to sidestep a union determined to protect rail safety,” Boucher said shortly after the government’s announcement. “Despite claiming to value and honor the collective bargaining process, the federal government quickly used its authority to suspend it, mere hours after an employer-imposed work stoppage. This action mirrors their earlier interference this year, where they used the CIRB to stifle bargaining for months.”

As of Friday morning, Teamsters had taken down picket lines at CN and were expected to return to work. However, the lockout continued at CPKC pending clarification of the government’s order. Both sides are scheduled to meet later today.

U.S. producers had warned of dire consequences should Canadian freight line shut down. Last week, the National Corn Growers Association was among several groups lobbying lawmakers on both sides of the border to resolve the dispute.

NCGA president Harold Wolle said a freight shutdown was the last things farmers needed as they dealt with a drop in corn prices and higher input costs.

“If a strike shuts down rail service from Canada into the U.S., it will adversely impact America’s farmers who rely on rail to ship goods between the two countries,” Wolle said. “We encourage Prime Minister Trudeau, the Teamsters and Canadian rail workers to do everything possible to avoid such a strike.”

The Canadian government appears to have heeded those concerns. While details still need to be ironed out, it appears the trains north of the border will soon be running again. At least for now.