A union representing employees at CN Rail is threatening job action to back contract demands.

On Saturday the Teamsters union gave the company 72 hour strike notice and could legally walk off the job Tuesday morning.

This comes after months of negotiations with some 3000 conductors, train and yard workers.

"We're doing everything we can to avoid a strike, and Teamster members expect the same from management," explained Roland Hackl, the union vice president.

CN chief operating officer Mike Cory says the company is continuing to bargain with a federal appointed mediator.

In a news release, Cory says the company is willing to agree to binding arbitration to settle unresolved issues.

 With files from The Canadian Press