Workers at Farmers Dairy walked a picket line Sunday. (CBC)

Workers picketed a Halifax-area Farmers Dairy plant on Sunday, with the workers saying they had been locked out and the company saying the workers were on strike.

A Farmers Dairy spokesman said the Nova Scotia-based firm would continue processing milk at the plant for the duration of the job action.

Many of the affected employees work at the company's processing and packaging plant on Hammond's Plains Road near Bedford, N.S., the site of the picket line.

The Communications, Energy and Paperworkers Union of Canada, which represents the workers, said a sticking point in the contract dispute is pension cutbacks.

Talks broke down last week and on Wednesday the company filed a notice to lock the workers out and the union filed notice to strike. On Sunday, both said the other followed through Friday night.

Either way, the 240 workers who help pasteurize the milk, package it and distribute it across the Maritimes are off the job.

There were no immediate plans to return to the negotiating table.

The picketing workers were allowing transport trucks and private security vans to cross the line.

"They've got scab workers on the inside, man, and we've got guys with 23 years and more experience out here and it takes time to get that experience and ship properly," said Cedric Parsons, a forklift loader at the plant.

'They've got scab workers inside, man, and we've got guys with 23 years and more experience out here.'— Employee Cedric Parsons

Local representative Kim Power said workers were willing to accept reductions to their pensions, but wanted guarantees the company would make restoring them a priority.

"They're taking their pension back to a position … it was 25 years ago," Power said.

"We understood that the company needed some financial relief … but at the same time we wanted some more comfort in how and when those things would be put back in place. The language just was not good enough."

Power said other contentious issues include training, wages and overtime.

A spokesman for Farmers Dairy said it had reached agreements with its other unions in recent months.

"Farmers Dairy is committed to reaching a settlement with our employees that is fair and reasonable for them, while keeping our organization commercially strong and competitive," company vice-president Derek Estabrook said in a media release.

"While we're disappointed that the union has decided to strike, we will continue to serve our customers across Nova Scotia, Prince Edward Island and New Brunswick."

The employees have been without a contract since October.