Suncor Energy has lost another legal round over its plan to randomly test thousands of union oilsands workers in Alberta for drugs and alcohol.

But the court battle over work site safety and individual privacy rights isn't over yet.

Earlier this month the Communications, Energy and Paperworkers union won an injunction against the testing and a judge ordered the matter to be settled by arbitration.

An Alberta Court of Appeal judge ruled today against a Suncor application to set aside the injunction.

Suncor, which had hoped to start the random tests earlier this month, will now make its case against the injunction on Nov. 28 before a full panel of three appeal court judges.

No arbitration date has been set and a similar case involving the union and Irving Pulp and Paper Ltd. in New Brunswick is to go before the Supreme Court on Dec. 7.