The union which represents the town workers in Fort Smith, N.W.T., said it served formal notice to strike after the town took a punitive stance against employees.

In a press release, the Union of Northern Workers said the two sides are at a standstill. It said the town forced its hand and employees will be in a strike position on July 18.

According to the union, the town agreed to an action that would protect casual employees, but only if the union accepted a lower wage increase.

Meanwhile, the Public Service Alliance of Canada is sending staff to the community to set up strike headquarters.