The City of Winnipeg says negotiations with transit workers have broken down and it is now pursuing all options available under the labour code to end bargaining talks.

"The most recent counter-proposal provided to the City of Winnipeg on Thursday last week continues to make unreasonable and unsustainable requests of transit passengers and property taxpayers," Michael Jack, chief corporate services officer for the city, said in a news release on Monday.

"We are now officially at an impasse."

The City of Winnipeg and the Amalgamated Transit Union have been at the bargaining table on and off for more than six months. The city's last offer on July 3 was rejected by union representatives without member approval.

The city then rejected the union's July 18 counter-offer, in part because it said it would cost up to $50 million over four years, a cost that would mean "significant" increases to bus fares, property taxes or both.

Jack said the city made several adjustments to its proposals "to the benefit of the ATU" in its July 3 offer but the union has not proposed any concessions to try to move the talks along nor has it proposed acceptable wage increases.

"Instead, they asked to continue discussing it, which at this stage of negotiating is arguable in bad faith and a clear signal that the ATU intends to strike," said Jack.

Winnipeg must now consider "all options available" under the Labour Relations Act to conclude negotiations with the transit union, the city's release said.

Aleem Chaudhary, president of the Amalgamated Transit Union local 1505, says the city's statement amounts to "scare tactics."

"It seems to be hinting toward the fact that they might lock us out," he said. "I think it would be counter-productive at this time to lock us out because we are willing to sit down."

Chaudhary denies the union is planning to strike and said bus drivers want to negotiate improvements to working conditions before settling wages.

"They're making it sound like it's all about the money and that's the only thing that's left on the table but it's not," Chaudhary said. "We have a lot of issues that have to be resolved."

A September strike initiated by Amalgamated Transit Union, Local 1505 is now more likely than ever. <a href="https://t.co/tPopSXGZNP">https://t.co/tPopSXGZNP</a> —@Mayor_Bowman

Bus drivers want longer breaks, more input into bus route scheduling and a part-time or full-time counsellor on staff to assist drivers who experience trauma or violence at work, said Chaudhary.

The union leader also took issue with the city's latest estimate of how much the union's demands will cost. He said it is roughly double the last estimate of $26 million.

"I would like to know where those numbers come from and who's doing the math," he said.

For its part, the city said it has conceded on several points to the union, including removing provisions for the introduction of casual bus operators and offered higher wages.

Mayor Brian Bowman repeated his belief Monday transit drivers are planning a strike in the fall. He warned riders to start making alternative transit arrangements.

The ATU is in a legal strike position and has been working without a contract since January.