Teamsters Canada Rail Conference president Rex Beatty was adamant Thursday afternoon that “the battle these workers are waging is of utmost importance” and said he is completely behind the 4,800 workers who walked off the job following failed negotiations for a new labor deal.

The group has been working without a contract since late last year.

“CP is trying to drastically cut pensions, but we’re going to do our best not to let them do it,” he said.

Mr. Beatty said the railway’s demands were unacceptable because workers will see pensions reduced as managers will receive an increase in benefits.

“CP management doesn’t seem to be bothered by this flagrant inequality,” Beatty said.

“But they shouldn’t underestimate our members. This is an important issue and we’re going to see this fight through to the end.”

Earlier Thursday, the union rejected CP’s statement that the ongoing dispute would lead to more layoffs.

TCRC communications director Stephane Lacroix told Canadian media outlet CBC News that the furlough “threats” are a normal procedure in negotiations.

“We will stay at the negotiations table and we won't quit,” he said.

He was responding to CP spokesperson Ed Greenberg, who said the strike action was unnecessary.

“Unfortunately…more than 2000 other unionized CP employees will not be required and are being laid off,” he said.

“We expect this to grow by another 1,400 employees as their work, related to the operations of the railroad, is no longer required.”

Meantime, federal labour minister Lisa Raitt was reportedly moving ahead towards potentially introducing legislation that would force an end to the walk-out.

“CP’s management needs to understand that hiding behind the federal government is not going to resolve things,” TCRC vice president Doug Finnson told the news service.

“Workers’ health and safety and pensions are serious issues and they…would be wrong not to settle them.”

Raitt told CBC that the government wants to “create the atmosphere where they can do a deal on their own”

“[T]hey have to be aware of the fact that the Canadian government will step in on the basis of the national economy and the greater public interest at some point.”

She said Wednesday that a prolonged strike could have a significant impact on the economy, conservatively estimating the hit at $C540 million a week.