The Public Service Alliance of Canada (PSAC), which represents 96 city workers, says the city is in a better financial situation than before, and workers should reap some benefits.

"There's more residents of Yellowknife now. ... The amount of (city) workers hasn't increased but the amount of servicing has," said Debbie McLaughlin, a regional representative with the PSAC. City workers belong to Local number X0345.

"They'd like to see an increase this time that reflects the work they do because they are some of the lowest-paid unionized workers in the North."

The contract for city workers expires Dec. 31. The city and its union sat down for a three-day round of negotiations last week, but were unable to come to any solid agreements.

"We've certainly got a lot of work to do and we've made some excellent progress," said city corporate services director Tim Mercer. "We'll be meeting again in the new year and we're confident we'll get an agreement."

Contract talks came to a quick conclusion three years ago when the city and union agreed to no increase in the first year, a $1,200 lump sum increase the second year and a $1,400 lump sum increase in the final year.

Workers also received a 0.5 per cent increase in RSP packages effective last Jan. 1.

McLaughlin wouldn't comment on what the union is specifically pushing for in the new contract, except to say "much more than a flat rate increase of $1,400, that's for sure."

But a harder line does not necessarily mean city workers will strike, said McLaughlin.

"I wouldn't say there is (a possibility of a strike) at this point," she said. "But you never can tell with negotiations."