Toronto's Employee and Labour Relations Committee met behind closed doors on Thursday to get an update on contract negotiations between city hall and labour groups.

City contracts with a number of unions, totaling some 28,000 workers, ended on Dec. 31. The contracts represent 22,000 inside workers with CUPE Local 79 and 6,000 outside workers represented by Local 416.

Union heads have warned that there could be a lockout if city hall and the employees don't reach a new contract agreement.

On Thursday afternoon, the committee gave city negotiators a confidential mandate.

"I'm concerned that the mandate that has been approved by the committee may not achieve what the people of Toronto and the majority of councillors will want to see happen," Coun. Janet Davis told CTV Toronto.

CTV Toronto's John Musselman reports that a strike or possible lockout could happen as early as the end of January or as late as mid-February.

The lockout could affect garbage pick-up, city-run daycares, libraries and city-owned arenas.

Tensions ratcheted up in December as both sides accused the other of bargaining in bad faith, setting the stage for a nasty labour dispute.

Very little has been discussed since the city requested the province appoint a conciliator. Both sides will meet with the conciliator next week.

Union head Mark Ferguson, president of the Toronto Civic Employees Union, Local 416 of the Canadian Union of Public Employees said the city was angling for a labour disruption.

Deputy Mayor Doug Holyday says he doesn't understand why the contract could not have been dealt with before it expired.

He said the city tried to start negotiation as early as May, but the union seems ready to let the "matter play out until we get to the good weather" – when the weather is most comfortable for those on the picket lines.

"That's their pressure point and that's when they want to get down to the bargaining table. Then if they can't get their way then they are in the best position to strike," Holyday told CP24 on Thursday.

Both sides still say they would prefer a negotiated settlement over a strike or lockout, but Holyday says the City is making contingency plans in case of a work stoppage.

With files from CTV Toronto's John Musselman