OTTAWA - The Harper government is prepared to introduce back-to-work legislation Monday to end the CN Rail strike, if the two sides don't reach an agreement.

Sources say the government would like to pass the bill through the House and Senate as soon as possible, providing the Liberals support the move.

Labour Minister Rona Ambrose will hold a news conference to announce the back-to-work bill tomorrow.

A senior official told CTV the government says it can't allow the strike to continue because of the potential damage to the economy.

About 1,700 locomotive engineers are on the picket lines, while qualified management personal are trying to keep the trains running.

The two sides were at a stalemate Sunday evening, after CN rejected the latest offer by the Teamsters Canada Rail Conference.

According to the government, Canada depends on CN's 20,000 kilometres of track for a number of essential goods such as: agricultural products in the West, auto products in Ontario, forestry products in Quebec and chemicals in the Maritimes.

The government says it hopes the two sides reach an agreement and avoids the need for back-to-work legislation.