Nearly 1,000 Via Rail workers have received temporary layoff notices from the company.
It comes as opponents of a pipeline project in British Columbia continue to set up rail blockades across the country.
“We have done everything to mitigate the impact on our employees and our passengers. At this point, we believe we have made the fairest and most reasonable decision with the proposed temporary suspension plan,” said Cynthia Garneau, president and CEO of Via Rail, in a statement.
Via Rail cancelled much of its service across Canada last week due to the blockades.
Trains resumed Thursday in parts of Quebec and southwestern Ontario, but plans to restart service between Montréal and Québec City were scrapped due to a new blockade.
“This general interruption is an unprecedented situation in our history. In 42 years of existence, it is the first time that VIA Rail, a public intercity passenger rail service, has to interrupt most of its services across the country,” said Garneau.
Via Rail said it hopes for a “decisive resolution” between those involved so service can resume as soon as possible.