Railway Canadian Pacific Kansas City (CP) has been given a strike notice by the union that represents its signals and communications workers.
The International Brotherhood of Electrical Workers says hundreds of its members will walk off the job on May 31 unless a new contract is reached.
The union says about 300 workers from Vancouver to Montreal want higher wages and better work-life balance.
The union adds that retention issues are also an issue as experienced workers leave for other jobs that offer better pay and improved quality of life.
Calgary-based Canadian Pacific says railway operations will continue in the event of a strike and that the company has made a fair offer to the union.
Contract talks between the railway and union are scheduled to continue over the weekend.
Canadian Pacific Kansas City operates 32,000 kilometres of rail in Canada, Mexico, and the U.S. and is the only railway to connect all the three North American countries.
CP stock has gained 13% over the last 12 months to trade at $91.26 U.S. a share in New York.
