PUP ditch Reg and embrace SF?

Having tried the UUP, David Ervine’s PUP are now, according to this report, trying a less formal pact with Sinn Féin.. but only in Derry and only on certain issues. The report says the joint statement refers to “a sustained dialogue to develop initiatives based upon common and agreed community issues.” So, after failing to take a ministerial seat from SF in an Executive, the PUP’s bid for respectability now involves attempting to undermine the DUP?