The City of Toronto and the union representing approximately 20-thousand inside workers reached an impasse Saturday night.

The City presented what it called its final offer to union negotiators Saturday, but CUPE Local 79 president Tim McGwire says it was rejected because it would create a two-tier system of contracting out public services

Toronto Mayor John Tory says the union also dismissed the provincial mediator, but McGwire says that`s not true and he doesn`t understand why the mayor made that claim.

McGwire says the union will continue it`s work-to-rule campaign, and will return to the bargaining table as soon as the City says it wants to talk.