Canadian National Railway Co. said yesterday that it offered the union representing 5,000 striking rail workers the option for a "cooling-off period" in which employees would return to work while bargaining resumes.

The offer, one of three options made by the company to leaders of the Canadian Auto Workers Union, came as hundreds of striking CN workers held rallies in eastern Canada yesterday. Riot police once again broke up protests at CN's Taschereau yards in Montreal's west end. No injuries were reported. Police said three strikers were arrested on charges of mischief.

The strike by cargo loaders, mechanics and clerical workers is entering its fourth week. It is affecting railway employees, customers and shareholders, CN said. "The union has the choice to continue the strike, but to resolve the dispute CN is ready to move forward," the company said in a statement.

CN made three proposals: A cooling-off period, binding arbitration where a third party would choose a settlement offer by either the company or the union, or allowing the CAW to submit what CN called "a final enhanced offer" for a vote by workers.
Union leader Abe Rosner called the offers "a positive sign." He said the union will weigh the options. But he said he does not favour binding arbitration. "We want to continue negotiating," Rosner said.

Dozens of striking workers in Montreal blocked access by trucks to CN's intermodal yard, where cargo is transferred between trucks and trains. Police said the strikers refused to move, defying a court order limiting the number of pickets.

About 40 riot police steadily pushed the strikers back, away from the gates to the yard. One man, who had been spouting rhetoric against CN chief executive Hunter Harrison periodically through a megaphone, was carried off by police.

Union representatives claim the two sides were close to an agreement last Sunday on several points, including the issue of alleged harassment of employees. But CN withdrew all new offers abruptly, saying union negotiators made a series of unrealistic demands. The railway said the union asked the company to boost the original agreement negotiated Jan. 23 by more than 25 per cent. "There is no economic basis to justify such an increase," CN said in its statement yesterday.

The workers, representing one-quarter of the railway's Canadian workforce, walked off the job Feb. 20 after rejecting a contract offer from CN that gave them wage increases of about three per cent for each of the next three years.
Union leaders had recommended the workers endorse the deal.

CN managers have stepped in as replacement workers. The company has also hired some retirees temporarily. The CAW charges the railway is also importing workers from the U.S. and has licence-plate information, names and photos to prove it. CN denies the charge.

Some trade groups have called on the federal government to intervene to put an end to the dispute, saying the Canadian economy should not be held ransom to the conflict. Federal mediators have so far urged the two sides to restart talks. But labor department officials say there is no plan to legislate an end to the impasse.