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Canada’s federal government has moved quickly to end a labour dispute that recently grounded two of the country’s largest railways, threatening supply chains across North America. Labor Secretary Steve McKinnon announced he would send both sides to final binding arbitration, ordering both railways to resume operations as quickly as possible. Canadian National (CN) and Canadian Pacific Kansas City (CPKC) locked out nearly 9,300 workers as of noon Wednesday after failing to reach an agreement with the Teamsters union. Canada ships about 75% of all goods exported to the United States, mostly by rail. Protracted disputes can disrupt shipments of a wide range of goods, from wheat and beans to potash, coal and lumber. “Workers, farmers, service users and businesses rely on Canada’s railways every day and will continue to do so,” McKinnon said. “The government’s duty and responsibility is to ensure industrial peace in this very important sector.” Canada, the world’s second-largest country by land area, relies heavily on rail transportation. The government says that while it supports the collective bargaining process, it must use its powers under the Canada Labour Code to ensure essential goods and trade continue to move. Under its direction, the Canada Industrial Relations Board will resolve collective agreement disputes. At the same time, the board will also extend current collective agreement provisions so that workers can return to work as quickly as possible. The collective agreements for both railways expired late last year. After months of negotiations, the increasingly bitter negotiations reached a breaking point late Wednesday night, CBC reported, with both sides blaming each other for not wanting to negotiate seriously. Both CN and CPKC have filed for binding arbitration. CN said Thursday it was “pleased” with the end of the labour dispute. “The company is disappointed that a negotiated agreement could not be reached at the bargaining table despite its best efforts,” it added. CPKC said it wants to “protect Canada’s supply chains and all stakeholders from further uncertainty and broader disruption.” Speaking to the BBC Thursday, before the arbitration was announced, Teamsters Canada national president Francois Laporte said the critical issue for his union was safety. “Across Canada, we have trains that move goods, energy and chemicals,” he said. “And we want to make sure that those trains are operated by people who are properly rested, who are safe and who are not fatigued.” Mr. Laporte reiterated previous statements by the Canadian Teamsters Rail Conference that accused the railways of being concerned only with “profits.”