Mediation talks between the City of Moncton and Codiac Transpo broke off on Tuesday with no resolution.
The 90 bus drivers, service workers and mechanics remain locked out and bus service remains suspended indefinitely.
Amalgamated Transit Union Local 1290 president George Turple said his side came to the table with two different proposals that answered the city's "concerns on concessions, overtime, and efficiencies."
But both were flatly turned down, he said.
Meanwhile, the city offered even less than it had offered before, Turple told CBC News.
The city said the union came back to the table asking for more than it requested prior to the lockout.
Moncton city spokesman Paul Thomson said the city is "looking for the union to be innovative with us."
The union's complaint filed with the labour board stands, said Turple. The union contends the city bargained in bad faith.
Turple says the union wants to go to third-party binding arbitration.
Council will now have to make a decision on binding arbitration, but the union said the city won't agree.
"We remain far apart. It's frustrating for all Codiac Transpo customers to hear this," said Thomson.
"It's a little bit disappointing."
The city locked out the Codiac Transpo workers a week and a half ago and the city has not had any bus service since then.
The two sides met with a mediator on Monday and Tuesday in hopes of ending the work stoppage.
It was their first discussions since April, when the Amalgamated Transit Union workers voted to strike.
The city's last offer to the transit workers contained a 13.75 per cent wage increase over five years.
That deal would have been retroactive to July 2010 and it contained improved health and dental benefits. The city’s offer would have brought a bus driver’s annual salary to $51,000 in 2015.
The union was asking for a 23 per cent wage increase over five years.
That would have brought a Codiac Transpo bus driver's annual salary to $55,120 in 2015, according to the city.