PSAC is representing close to 20 village employees seeking their first collective agreement after unionizing on May 30.
Representatives of PSAC and the village met last week in Fort Simpson but broke off talks during the second of three scheduled days of bargaining.
A disagreement over wages was the breaking point.
"We are very disappointed that the union chose to break off negotiations at this early point," Mayor Tom Wilson stated in a press release.
"We felt we were starting to make progress in negotiating a first collective agreement with the union. However, because the union would not put forward a proposal regarding wages, we've not been able to make any progress on this important aspect of the agreement."
Asked for further comment, Wilson said there's little else he could say.
Jean-Francois Des Lauriers, regional executive vice-president for PSAC, said it's not unusual to seek a federally appointed conciliator at such an early stage of negotiations.
"We feel we're too far apart to go any further now without the assistance of someone who will try to bring the parties together," said Des Lauriers.
The conciliator will listen to each side. He or she will then decide whether or not to prepare a written report.
The report is not binding and either side can reject it. If the report is dismissed "then it opens the door to a strike ... within a certain number of days," Des Laurier said.
The first round of negotiations was held in October.
No conciliation dates have yet been set, but Des Lauriers said there will be no further meetings until the new year.