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The federal government has decided to impose binding arbitration between the Teamster's Canada Rail Conference, CN Rail, and CPKC.
The worker's union and the two companies had entered into a lockout at 12:01 a.m. this morning.
Labour Minister Steven MacKinnon announced the decision at a news conference in the afternoon.
That came after the Canada Industrial Relations Board set August 22 as the date for strike action, following a decision that labeled the rail industry as non-essential.
The federal government rejected a call for binding arbitration earlier this month when CN Rail and CPKC requested that from the government.