Update — July 29, 11:16 a.m.: VIA has extended the deadline for the 60 percent discount to Friday, July 31.

Service on VIA Rail is gradually returning to normal this afternoon, with full service expected by the start of service on Monday, according to the Toronto Star. Striking engineers are returning to work after both sides agreed to binding arbitration to settle their differences.

VIA Rail spokesperson Ashley Doyle has said that travellers who purchased tickets for trains that were cancelled can expect a full refund, or can exchange their ticket for one on another day.

(Update: 19:51): VIA Rail has announced a special promotion to “apologize” to passengers for the strike. If you buy an economy class or business class (the latter within the Quebec-Windsor corridor) ticket between now and 11:59 p.m. (Pacific Time) on Wednesday, July 29, 2009, you will receive a 60% discount on the regular adult fare. Your trip has to take place between now and December 14, 2009.

For more details or to book tickets, consult VIA Rail’s web site at viarail.ca or call them directly at 1 888 VIA-RAIL.