The city has sent out layoff notices to 47 so-called auxiliary employees who act as security guards for various municipal properties including city hall and the municipal court.
It's part of an ongoing program to turn security over to the private sector.
Pierre Desrochers the chairman of the executive committee says the move will save the city about $1 million per year.
The city issued a call for tenders in March.
The Canadian Union of Public Employees, which represents Montreal blue collar workers, is challenging the move in court and the Journal de Montreal says the contract has not been awarded yet despite plans to have the layoffs completed by the end of July.