The Amalgamated Transit Union (ATU) has made an offer to the City of Saskatoon.
Local union president Jim Yakubowski said the ATU had made the city a proposal "with a reasonable solution" to the situation yesterday afternoon. He would not provide further details.
The union has been without a contract since 2012.
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In 2014, workers were locked out of their jobs by the City of Saskatoon. Both sides were deeply divided over the status of the workers pension plan.
Last year, the Saskatchewan Labour Relations Board ruled that two weeks of the lockout was illegal, and ordered the city to reimburse the union $651,000 in damages.
The City of Saskatoon had no comment. It now has until Monday at 5 p.m. CST to respond to the new offer.