The Quebec government has named a conciliator to try and mediate a contract dispute between the city of Montreal and blue-collar workers.

Employment Minister Sam Hamad says the province named Stephane Giraldeau a few hours after the union made the request.

"I now hope that the two sides will continue their efforts, with the help of the conciliator, to reach a negotiated settlement," Hamad said in a statement on Wednesday.

The blue-collar workers have been without a contract since August 2007 and they held a one-day strike on Aug. 31.

The municipal employees, members of the CUPE union, are asking for a three-per-cent pay hike, retroactive to 2007 indefinitely.

The City of Montreal says it can't afford the increase, and is offering no increase for 2007, and then an increase every year until 2010.