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(Reuters circulated the following article on July 20.)

VANCOUVER, British Columbia — Striking track workers on a portion of Canadian National Railway Co.’s U.S. network returned to work on Thursday after agreeing with the company to resume contract talks.

About 250 workers on the former Grand Trunk Western, Detroit Toledo & Ironton, and Detroit Toledo & Shore Lines walked off the job on Wednesday to protest what they said was CN’s refusal to bargain in good faith.

The sides plan to meet Friday and have invited a federal mediator to join the negotiations, officials said.

They have also asked the courts to postpone a hearing on a preliminary injunction request until July 26 to allow time for talks. The union said it will suspend its strike and picketing during the interval.

“I am cautiously optimistic that we can reach an agreement without further work stoppages,” Chief Executive Hunter Harrison told analysts in a conference call on CN’s second quarter earnings, which were also released Thursday.

The company and the workers, who are represented by a unit of the Teamsters union, are at odds over issues such as employee seniority rights, health-care payments and the railroad’s contracting out of work.

The previous contract signed in 2001 expired in December 2004, according to the union, which had accused CN before the walkout of refusing to come to the negotiating table.
A Teamsters spokesman said the picket lines had been honored by other unions, but CN said it was able to maintain regular freight service using management crews.

The affected tracks were in Michigan, northern Indiana and northwest Ohio. The strike did not involve Canadian National’s other operations in the United States or in Canada.