Ottawa council has shown solid support for a city negotiating team set to meet with transit union representatives Saturday in an effort to end a 10-day-old transit strike, says Mayor Larry O'Brien.

"I'm very delighted to announce that council is fully behind the negotiating team," O'Brien Friday after coming out of a closed-door council meeting about OC Transpo. "I think we're on the road at least of seeing if there's a possible settlement."

Federal mediator Arnold Powers is to mediate talks this weekend between the city and Amalgamated Transit Union Local 279, which represents 2,300 drivers, dispatchers and maintenance workers.

O'Brien cautioned that a lot of work remains to be done at the negotiating table.

Capital Ward Coun. Clive Doucet said he was now "very hopeful of a settlement."

Councillors also passed a motion Friday to look into compensating businesses for losses suffered during the strike. Some councillors expressed reservations about the idea, saying many individuals also suffered during the strike.

Union members walked off the job on Dec. 10 after failing to reach a contract with the city, largely due to disagreements over the city's scheduling proposal. However, both sides agreed Thursday to drop their existing pre-conditions and resume talks on Saturday.

Powers brokered a tentative deal Tuesday between the city and the Canadian Union of Public Employees Local 5500, which represents 140 OC Transpo garage supervisors, route supervisors and special constables.

At Friday's meeting, council approved that contract, which must now be ratified by union members on Monday.

CUPE local president Wayne Watts said earlier in the week that scheduling had originally been a stumbling block for his members in the same way they have been for the Amalgamated Transit Union. However, the city eventually allowed those issues to be removed from the table.

Doucet said he believes a news release he sent last week calling for arbitration to end the strike may have helped push the two sides to return to the negotiating table.

"It gave people who were suffering a vehicle to express their anger," said Doucet.

He added that his office was flooded with calls from constituents after he issued his statement, including one call from a restaurateur who said he'd had 19 Christmas party cancellations this year.