The annual National Agreement pay review is usually agreed between the two unions and results in a proposed pay increase across the three classes of workers in the print industry.
However, the BPIF said that due to the "unprecedented deterioration" in trading conditions, it was only able to offer a £1.84 a week increase on the national minimum grade rate for Craft/Class 1 workers, an increase Unite termed "unacceptable".
BPIF corporate affairs director Andrew Brown expressed his disappointment at the inability to reach agreement but said he believed the BPIF offer was "fair and reasonable in the current climate".
He said: "The industry is facing extreme difficulties and uncertainty in relation to the period ahead, with the vast majority of our members unable to afford any increase in wages this year."
He added: "Agreeing [Unite's] figure would have been irresponsible and unaffordable."
Unite hit back saying that the BPIF had called for "zero increase", which it said was "unacceptable" and could not be put to a ballot.
Assistant general secretary Tony Burke said: "We are disappointed that it was not possible to reach a negotiated pay settlement for this year."
In a statement, Unite said: "The BPIF finally made what [it] described as 'a token offer' of £1.84 on the basic Class I BPIF rate, however this was conditional on Unite accepting full cost recovery and 'a strong inability to pay clause'."
The statement added that the union had "done all it can during this difficult time to support for the printing industry wherever possible and so have our members who are working harder than ever and face increasing living costs".
Last year, the unions agreed on recommended pay rises of between £7.87 and £9.60 for the three classes of workers with, Class I, the lowest paid workers, receiving £7.87, Class II getting £8.64 and the recommended £9.60 increase for Class III workers.
The failure to agree comes at a time when pay freezes are being introduced by many private companies and many staff are agreeing to accept pay cuts to avoid redundancies.
Unite said it will be reporting back to a meeting of Regional Officers and the Unite GPM National Sector Committee at a meeting in early March.
Are wage increases unrealistic this year? Leave your comments below.
