The Alberta Union of Provincial Employees is asking the province for a wage hike, but the province is saying it can't offer up much more than a wage freeze. The AUPE reveals it is dead-locked with the province after more than 20 days of negotiations for a new agreement for more than 20,000 provincial employees.

"We are open to going back to the table, but only if there are meaningful discussions," said Alberta Union of Provincial Employees President Guy Smith.

The discussions have centered around a four per cent increase the first year and a five per cent hike in the second, but the province is standing firm saying it can only offer a wage freeze at this point.

Premier Ed Stelmach says with a $5 billion deficit hanging over the province, Alberta won't be in a good financial position for at least another year.

"Our issue is that we don't see revenue come into the province with increased employment and more businesses until about a year, year-and-a-half later."

But the union isn't buying what the premier is saying.

"We know that Alberta is a rich province, we are told that all the time," said Smith. "We know that Alberta has funds for certain things and those funds need to go into direct public services."

Some provincial employees feel their work situation has gotten worse.

"We are seeing members going off on stress leave, they are quitting," said Maureen Braun who works as a young offender court coordinator.

Braun says employees deserve a wage increase and isn't content with the premier's explanation.

"Saying that he cannot afford to give us an increase is not good enough," she said.

The AUPE is now consulting with members to see how much they would like to proceed. Negotiating teams will meet in Edmonton on February 3rd to develop new strategies.

With files from Sonia Sunger