Toronto Mayor John Tory says he wants to "test the market" on the cost of garbage pickup east of Yonge Street to see if the city can find savings over a recently signed contract with trash collectors represented by CUPE Local 416.

"The best service at the lowest possible cost, that is what we're seeking," said Tory on Monday at a news conference held on a taxpayer's driveway in Scarborough.

Toronto's trash collection was privatized west of Yonge Street in 2012. Tory, who was elected in 2014, ran on a campaign to privatize garbage curbside pickup in the city's east end.

The mayor's push for privatization was deferred last year, in part because the city was about to start negotiating a new contract with its unionized outside workers. A deal was signed earlier this year, and Tory says that contract gives the city updated numbers to work with and see if the private sector can deliver a comparable service, but at a lower cost.

Trash pickup west of Yonge Street was taken over by private contractor Green For Life in 2012. (CBC)

"The city is saving millions of dollars contracting out garbage in the west end of the city," he said. "We need to get the same savings and level of service for residents in the rest of Toronto. The best way to do that ... is to go to the marketplace and say: 'How much will it cost you to provide this service?' "

But Matt Figliano, CUPE's executive vice-president, says a 2015 report from Ernst and Young found that privatizing curbside pickup didn't save the city any money.

"I'm disappointed," Figliano said. "[Tory] is making false statements. It's ideology, they want to contract out."

A staff report will come before the city's public works committee today asking that staff take a second look at contracting out, based on numbers in the new contract. The report calls on staff to present a report on its findings in January.

"We must test the market to see if perhaps a better deal and better service can be done for less money," Tory said. "The best service at the lowest possible cost, that is what we're seeking."

CUPE Local 416 says privatizing east-side garbage collection will eliminate 500 city jobs.