Aug 5 (Reuters) - Teamsters Canada, Canadian National

Railway ( CNI ) and Canadian Pacific Kansas City ( CP ) have

agreed to restart stalled contract negotiations along with

federal mediators, Minister of Labor Steven MacKinnon said on

Monday.

"The meetings were frank, constructive discussions that

reflected the gravity of the situation before Canada's railways,

workforce and entire economy," MacKinnon said in a statement,

posted on X, after a discussion with the leadership of the union

and the rail companies.

The goal of the meeting was to discuss increasing the pace

and frequency of discussions at both companies, which had slowed

down after the federal government temporarily suspended workers'

right to strike, Teamsters Canada said in a separate statement.

All parties would meet again on Wednesday in Montreal and

Calgary, the union added.

In May, workers represented by the Teamsters union had voted

overwhelmingly to strike.

"A work stoppage can be avoided, provided both companies are

willing to return with fair and equitable proposals," Teamsters

Canada said.

Canada relies heavily on its extensive railway network,

given its expansive geography and significant exports such as

grain, potash and coal.