As a Sunday deadline approaches, Toronto's deputy mayor says it's time for the city's outside workers to get down to business and negotiate a new contract.

In an interview on Metro Morning, Doug Holyday said the threat of a lockout is not off the table, if CUPE 416 fails to reach agreement on a new contract by Feb. 5.

"That's one of the things that could happen. I can't say for certain what's going to happen at that time," he said.

A showdown is looming between CUPE 416 — which represents about 6,000 workers in Toronto — and the city which is trying to negotiate a new contract, seeking a number of changes that the union is resisting.

"There's a lot of things in this contract that are wrong that have to be corrected," Holyday said.

It's been suggested that seniority rights, wages and benefits are the main issues.

Earlier in the week Holyday seemed to suggest that the city would not force the issue when the midnight deadline passed. Now he's not willing to be so definite.

"Although I thought, perhaps, we would get by the deadline without a problem, unless they're willing to talk at the table that's not going to be the case."

Holyday said the two sides are "marginally" closer to a settlement but that the union needs "to that table and get down to serious talks."

"Just what will happen [after the deadline passes] I can't say for sure," he said.

CUPE 416 president Mark Ferguson was also interviewed on the Metro Morning.

Ferguson said the negotiations had been "difficult" but he added, "the progress that has been made, specifically this week, bodes well for the bargaining process."

The city is also in negotiations with CUPE 79, which represents about 18,000 city workers, as well as CUPE 4948, which represents Toronto library workers.