The Toronto Transit Commission and CUPE Local 2 have agreed to extend contract negotiations past a midnight strike deadline as both sides say progress is being made toward a deal.

The extension comes as concerns had been growing over a potential labour disruption involving about 700 skilled electrical workers responsible for maintaining critical TTC infrastructure, including subway signals and streetcar overhead systems.

In an update issued Friday, the TTC said talks with the union will now continue until 6 p.m. Saturday.

“This move comes as both sides believe there is enough progress to reach a deal,” the TTC said in a statement.

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CUPE Local 2 represents workers including subway signal maintainers and streetcar overhead maintainers.

TTC CEO Mandeep S. Lali said the transit agency remains committed to reaching a “fair and financially sustainable agreement” through ongoing negotiations.

“The TTC values the important and highly skilled work performed by CUPE Local 2 members,” Lali said in a statement released earlier this week.

However, Lali previously said the union’s current proposal would add roughly $40 million in additional costs over the term of the agreement, on top of what he described as an already competitive compensation package.

According to the TTC, the current agreement includes overtime paid at double an employee’s regular hourly rate and a 25 per cent premium for Sunday work.

The TTC also said CUPE Local 2 workers received wage increases totalling 14.9 per cent over four years in the previous agreement.

Lali argued the union’s latest proposal is “not fair, reasonable or affordable” and would place added pressure on taxpayers and transit riders.

The TTC said there is currently no impact to transit service and customers should continue to monitor official TTC channels for updates.

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