The City of Toronto is careening toward a lockout in two weeks after it rejected a union's offer of a wage freeze in exchange for no changes to the conditions of its collective agreement.

CUPE Local 416, which represents some 6,000 outside workers including paramedics and garbage collectors, made the offer during a public announcement on Friday.

It called the wage freeze concession a gesture of good will that would save the city $8.5 million a year, which could be spent on city services threatened by budget cuts.

But Deputy Mayor Doug Holyday rejected the olive branch, noting that the collective agreements must be changed if the city hopes to provide cost-effective services to the public.

"This round of bargaining is about the public and getting the changes necessary to improve city services for our residents and taxpayers," Holyday said in a statement.

"The current collective agreement doesn't provide the city with the flexibility to deliver efficient and cost-effective services to the residents of Toronto."

Mark Ferguson, president of CUPE Local 416, told the media earlier in the day that his workers were willing to take a three-year wage freeze to "help maintain services threatened by the city budget."

"We want to help city council find ways to save these services and we are ready to do our part," Ferguson said.

Ferguson, dubbed "Dr. No" by city negotiators for his constant rejection of city demands.

"We are willing to sign a wage freeze tomorrow in agreement that continues the current terms and conditions of our collective agreement," he said.

The stalemate comes one day after the city took steps that would allow them to lock out unionized workers by early February.

City officials requested on Thursday a "No Board Report" from the Ontario Minister of Labour, starting a 17-day countdown until the city is in a legal lockout position and the union can legally go on strike.

Ferguson said the city is using the labour relations board as a way to bully the union into an agreement. He said the city has shown no willingness to negotiate a deal with the workers, saying a meeting on Thursday lasted three minutes.

But Holyday said the move was necessary to encourage the union to return to the bargaining table.

"It is our hope that the increased pressure will help encourage the CUPE Local 416 bargaining team to return to the table with meaningful and substantive proposals," said Holyday.

Collective bargaining with another union continues. The two have been without contracts since the agreements ended on Dec. 31.

The city claims it has a plan in place to maintain key city services in the event of a strike.