City busses likely won’t be running on Saskatoon streets anytime soon.

The City of Saskatoon issued a second lockout notice to the transit union at 1 p.m. Friday, just hours after the Saskatchewan Labour Relations Board ruled the first lockout illegal.

“The city believed we were in a legal lockout position,” said city transportation and utilities manager Jeff Jorgenson. “The labour board’s ruling gets us no closer to a contract.”

The 48-hour notice means bus drivers — represented by the Amalgamated Transit Union Local 615 — will be locked out starting Sunday afternoon.

“We are truly disappointed. We were looking forward to getting back to work, putting the busses back on the road,” said union president Jim Yakubowski.

The labour board ruled the city unlawfully locked out over 300 transit workers Sept. 20 because a complaint, regarding the discipline of a city bus driver, was outstanding when the lockout notice was issued. The board also stated changes the city made to the union's benefits, privileges and conditions of employment during the pending complaint — which was resolved Oct. 3 — were unlawful.

The city was ordered to cease and desist the lockout and to pay compensation to drivers. The board stated the city cannot issue another lockout without providing 48-hour notice and notifying the provincial government

Yakubowski said the union believes a second lockout would also be ruled illegal. Unfair labour practice applications are still before the labour board, he said.

“Neither the city, nor ourselves, in our lawyer’s position, are in a legal position to enact any form of actions.”

The transit union is not in a position to strike and the city is not in a position to lockout drivers, he said.

The city believes a lockout Sunday would be legal, according to Jorgenson.

“We definitely know that the union has made other applications. Our legal advice is that those are not pending before the board,” Jorgenson said.

The labour board ruling did not specify how much the city must compensate transit workers. The union will be seeking full compensation for the nearly one month drivers were locked out, Yakubowski said. The city only plans to provide partial compensation.

“Our interpretation of the board’s order is that it would be a partial payment for the wages,” Jorgenson said.

Bus drivers have been without a contract since December 2012.

The city has stressed several times throughout negotiations that eight of nine city unions — all except the transit union — accepted contract offers from the city. The offers included a 10 per cent wage increase over four years and pension plan changes.

The pension changes included an increase in contribution rates and changes to how earnings are calculated.

The union voted against the contract in August, but last month, city councillors pushed forward a new pension plan for all unions, including the ATU, at a special council meeting.

The labour board ruled the city unlawfully made changes because of the pending complaint.

“We’re not going to know exactly the interpretation until we’ve met with ATU and until we’ve seen the reasons from the board,” Jorgenson said. “We really need to see the reasons for the board’s ruling.”

The two sides plan to meet Sunday at 1 p.m.