Panama City and the Teamsters Union are heading to an impasse over a contract for the city's police officers.
Negotiators for the city have rejected all of the proposals and counter proposals made by the negotiators from the Teamsters local 991 out of Mobile.
Officers voted to have the union represent them about a year ago. Sources tell NewsChannel 7 the city will not be making anymore counter-offers, so the union is asking a federal mediator to step in to resolve some of the issues.
The main sticking-point has been salary increases.
The city says it doesn't have the money to give any raises. Future negotiations have been canceled, and both sides are supplying possible dates to begin the mediation.