Contract talks are resuming on Tuesday in the ongoing Codiac Transpo dispute between Moncton and its transit workers.

Moncton locked out its transit employees on June 27 and wages continue to be a significant stumbling block in the lengthy contract fight.

A city spokesperson said the Amalgamated Transit Union Local 1290 has a new proposal it wants to present.

A mediator will be present during the contract talks.

During the last round of negotiations, the city offered to pay Codiac Transpo drivers $52,000 a year by 2017.

However, the union was holding out in hopes of being paid $60,000 per year by 2018.

Jacques Dubé, the city manager of Moncton, called that demand a "wage bomb."

Both sides had already agreed to annual pay hikes that would bring the bus drivers' salaries to $51,000 a year by 2017, up from $44,000.

The workers have been without a contract since 2010.

Codiac Transpo serves Moncton, Riverview and Dieppe.