The owners and players met on Tuesday for several hours and came away sounding less optimistic about a deal than they did last week.
Billy Hunter said that there was no progress, with the owners declining to compromise from their position. He also said that no new meetings are scheduled.
"We've advised (players) they may have to sit out half the season before we get a deal," said Hunter.
Derek Fisher said the players remain committed to negotiations.
"We're not walking way from the table," said Fisher.
Hunter says union came away "pessimistic and discouraged" by the proposal from the owners.