Facing possible back-to-work legislation, the union representing 2,800 striking CN Rail workers has rejected CN's request for a voluntary truce while a settlement is negotiated.

Federal Labour Minister Jean-Pierre Blackburn warned in the House of Commons on Tuesday that he had back-to-work legislation ready.

Tank cars sit in a Toronto railway yard, one of many across Canada affected by a CN Rail strike.
(CBC)

It was not clear when the bill would be introduced or when a vote would be held, but Blackburn said earlier in the day that he would consider legislation unless the strike ended within hours.

Also on Tuesday, the United Transportation Union rejected CN's request for a voluntarily return to work during negotiations with a 60-day period before any new labour action could be launched, the Canadian Press reported.

UTU spokesman Frank Wilner said the strikers want a contract before they go back to work.

"They do not want a cooling-off period and they will remain on the picket line until we are able to negotiate a reasonable settlement," he told CBC News Online.

Would obey legislation if enacted

Wilner said the union would obey a back-to-work law, but he added: "The law would have to be passed first."

He said UTU officials think the government would face "great difficulty" in getting enough opposition support to get it through the current minority Parliament.

On Monday evening, the Canada Industrial Relations Board rejected CN's request that the strike be declared illegal.

A three-member panel headed by CIRB vice-chair Julie Durette issued an oral ruling rejecting CN's argument that the UTU had given improper notice of the walkout and union officials had acted without a proper mandate. The reasons for the decision were to be released later.

Blackburn said he told both sides that night that the situation could not continue amid complaints from the grain, chemical, automotive and shipping industries, as well as from remote communities that depend on rail service for food and fuel.

"I told them we don't have days before us, we have hours — they have hours," he said.

In the House, he said that Canada's economy was being severely affected and time was running out. "Our legislation is ready," he said.

The two sides were to meet separately Tuesday with Elizabeth MacPherson, the federal government's chief labour mediator.

Pay raises a key issue

When talks broke off Feb. 9, CN said the union was demanding a three-year contract with pay raises of 4.5, 4.5 and four per cent for the 2,800 conductors and yard-service workers, who the company said earned an average of $75,000 last year, with one-quarter of them paid over $90,000.

Federal back-to-work legislation has been enacted 31 times since 1950, including six times in the rail industry, most recently in 1995.

Whether such a law would pass in the current Parliament is unclear.

The NDP flatly opposes such a bill. The Bloc Québécois wouldn't declare whether it would support legislation and Liberal labour critic Mario Silva said it was premature to determine if the party would endorse a back-to-work bill.

Blackburn said MPs must set aside politics and act in the best interest of the country.

"We know we are a minority government, but at certain times Parliament has to take certain decisions that are the best for our economy," he said. "We cannot let people in far, remote areas not get their food and fuel."

With files from the Canadian Press