Canadian Pacific Railway and the Teamsters Canada Rail Conference say they have reached a four-year tentative agreement to end a strike hours after it began.
The parties also reached a five-year deal for the Kootenay Valley Railway.
The union says full operations at both railways will resume Thursday morning across Canada.
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Union president Doug Finnson called the deal a fair contract that its members can feel good about.
CP Rail chief executive Keith Creel says the agreements are positive for 12,000 railway employees, customers and the entire Canadian economy.
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Creel adds that the agreement will provide long-term stability.
The tentative agreements must be ratified by Teamsters members over the coming months.
Details of the agreement are being withheld pending ratification.
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