OTTAWA, June 7 (Reuters) - The Teamsters union said on

Friday that Canadian National Railway ( CNI ) and Canadian Pacific

Kansas City ( CP ) had rejected a proposal to stagger negotiations with

both companies by two weeks, which would reduce the economic

disruption from a strike or lock-out.

"(Their) rejection of this proposal is a clear indication of

... their unwillingness to negotiate," Teamsters Rail Conference

Union President Paul Boucher said in a statement. The two sides

are at an impasse after more than five months of talks on a new

contract.