*

Teamsters union files strike notice for CN workers

starting

Monday

*

CN says trains are resuming operations

*

Labour Minister asks CIRB to issue back-to-work order

(Adds Teamsters, CN statements in paragraphs 5, 6)

By Allison Lampert, David Ljunggren and Anna Mehler Paperny

MONTREAL/OTTAWA, Aug 23 (Reuters) - The union

representing over 9,000 Canadian rail workers vowed on Friday to

challenge the federal government's effort to mandate binding

arbitration that would end an unprecedented rail stoppage at

both of the country's main freight rail carriers.

The Teamsters union also filed notice to strike on Monday at

Canadian National Railway ( CNI ), Canada's largest railway.

The union's moves are the latest twist in labor disputes at

CN and Canadian Pacific Kansas City ( CP ), which locked out

Teamsters members on Thursday, triggering a simultaneous rail

stoppage that business groups said could inflict hundreds of

millions of dollars in economic damage.

They further complicate the task of the Canada Industrial

Relations Board (CIRB), which was meeting for hours on Friday

with union and railway representatives, after the government

asked it to end the impasse.

The Teamsters union on Friday night said the parties had

concluded a day-long meeting, in which it argued that the

government did not have absolute power to end the labor action.

"The union will lawfully abide by any decision from the CIRB,

and is prepared to file challenges in federal court if

necessary," it said.

Railroad CN in a statement said it would move forward

with a recovery plan until a CIRB decision was issued.

Labour Minister Steven MacKinnon, citing the risk to the

economy, also asked the board to impose binding arbitration on

talks between the union and companies, and for operations at

both railways to resume immediately.

Canada, the world's second-largest country by area, relies

heavily on trains to transport a wide range of commodities and

goods.

The Canadian Chamber of Commerce said it was disappointed

with the Teamsters' decision to challenge the government's

directive.

"This action will prolong the damage to our economy and

jeopardize the wellbeing and livelihoods of Canadians, including

union and non-union workers across multiple industries," the

group said.

LEGAL CHALLENGES

Legal experts warned the Teamsters' challenge creates

uncertainty and delays.

If CIRB orders workers back on the job pending binding

arbitration, the union could challenge that decision and ask for

a judicial review, said University of Manitoba employment law

professor Bruce Curran, adding that if the employees do not

return to work while the hearing is pending, the railways could

seek an injunction forcing them back.

The federal government could also seek to pass back-to-work

legislation, for which it would need the support of at least one

other party because it does not control a majority of seats. The

left-leaning New Democratic Party, which traditionally enjoyed

strong union support and which props up Trudeau's government,

has decried the government's intervention.

The timeline for a CIRB decision is unclear, the union said

on Friday afternoon in a statement.

Earlier in the day, Francois Laporte, president of Teamsters

Canada, denounced MacKinnon's decision.

"We don't believe a third party (should) decide what are

going to be our working conditions," he told reporters at a

picket outside CPKC's Calgary headquarters.

He said that in case of a back-to-work order, "our people

will still be on strike. We will still be on the streets, so

operations will not resume. It's not going to be business as

usual for both companies".

STRIKE NOTICE

The union representing CN workers also served the company

with a strike notice on Friday, shortly after saying its members

would return to work in response to CN lifting its lockout.

The union filed notice that conductors, locomotive engineers

and other workers at Montreal-based CN would strike on Monday at

10 a.m. ET (1400 GMT).

The Teamsters said they were prepared to negotiate with CN

over the weekend and reach a deal despite disputes over

scheduling, duration of shifts and availability of labor.

The Canadian government and CPKC had no comment on Friday.

CPKC said late on Thursday that it was preparing to restart

operations in Canada and that further details on timing would be

provided once it received CIRB's order.

A CN spokesperson said on Friday trains were starting to run

and that its plan to resume operations was under way.

"We are focused on getting back to work," said Jonathan

Abecassis, CN's spokesperson. "The Teamsters are focused on

getting back to the picket line."

A lockout at CPKC has not been lifted. The union had already

served CPKC with a strike notice before the lockout began.

MacKinnon had expressed confidence on Thursday that his move

to refer the matter to CIRB and seek binding arbitration would

survive a court challenge, given the broad power he has under

the country's labor code.

"We're very, very confident about the path that we've

selected here."