Officials from the MTA and Transport Workers Union said they didn't expect to reach a deal on their contract, which was set to expire at midnight Sunday, but said they planned to continue negotiations this week without any threat of a strike.
Both sides met for most of Sunday at a midtown Sheraton hotel, as TWU members staging a rally outside. The sides also conducted a daylong meeting Saturday at New York City Transit's downtown headquarters.
Sources present during negotiations, who spoke on the condition of anonymity because the talks were still ongoing at press time, said both sides were "still far apart, but still talking."
MTA officials say they have no money for pay raises over the next three years unless the union agrees to concessions to pay for them.