CALGARY - Canadian Pacific Railway Ltd. (CP.TO) says it's disappointed but not deterred that train crews voted to reject a one-year contract renewal.

CP Rail said it's meeting with leaders of the union representing rail workers on Thursday to discuss the results of the vote in which a majority of members rejected the proposed extension.

"We look forward to working with the union membership to better understand this result and to discuss next steps," said CEO Keith Creel.

"We remain optimistic that we can come to a mutually beneficial agreement."

A memo posted by the Teamsters Canada Rail Conference said that of the 1,725 members who voted on the contract renewal, 1,158 said no to the proposal.

The union represents approximately 3,000 Canadian conductors and engineers at CP Rail.

"The TCRC is assessing the entire situation and consistent with the Labour Code will be contacting CP to begin the bargaining process," said Teamsters president Douglas Finnson.