Bishop's University in Lennoxville, Que., decided to lock out all of its unionized employees Thursday after days of negotiations with a conciliator failed to produce an agreement.

Nearly 280 professors, instructors and librarians, and support staff are included in the lockout.

Robert Poupart, the principal of Bishop's University, said the financial problems facing the school are dominating the labour negotiations.

"The situation we're facing right now is not first and foremost a labour dispute or a labour relation issue, it's a financial issue and it's a fiscal responsibility issue," he said. "We have an accumulated deficit of $5 million and a projected deficit of $3 million for the year to come."

Poupart said he hopes the lockout will force both sides to think of ways to resolve the dispute. He also said the university is determined to have an agreement in place before the beginning of the fall term.

Ginny Stroeher, a biology professor and the president of the professors' union, said she was surprised by the university's move.

"We thought there was a lot of progress being made. On Sunday, we were in the hotel until six in the morning and then they just simply walked away from the table," Stroeher said.

The main issue still causing problems at the negotiating table is the pension plan, Stroeher said.

The lockout means all summer courses and ESL classes are suspended.