Negotiations between the city and its inside workers continued late Saturday night, after a "major announcement" was cancelled just before 10 p.m.
Citing a "new development," city representatives called off a news conference scheduled for 9:45 p.m.
City and CUPE 79 negotiators had agreed to keep talking past the Friday midnight deadline in an effort to reach a labour deal. They took a break at 6 a.m. Saturday and were back at the table by noon.
CP24 reported late Saturday the city would not lock the workers out.
Toronto deputy mayor Doug Holyday said earlier Saturday that discussions with CUPE Local 79 will continue as long as there's progress.
CUPE Local 79 represents 23,000 workers, including child-care providers, public health nurses, recreation-centre workers and janitors.
If the inside workers opt to strike, the majority of city facilities, including all municipal daycares, pools, recreation centres, arenas, museums and art galleries, would close.
Services that would not be affected in the event of a strike include wedding ceremonies, but only at city hall; legal documents, claims, and appeals at city hall; provincial offence courts; and urgent public-health services, including infectious disease control and the AIDS hotline.
The major sticking points between the union and the city are benefits and job security. Many of the indoor workers represented by the union are part time and want the greater job security that full-time workers enjoy.
The impasse in talks comes after both sides showed optimism Friday afternoon.
The union presented a proposal to the city late Thursday and the city countered with its own offer on Friday, Holyday told CP24.
Holyday said the city was able to reach a negotiated settlement with CUPE 416 earlier this year, the union which represents outside workers, and he is optimistic the city will be able to make a deal with CUPE Local 79 as well.
For its part, the union said that it would keep talking to the city as long as they can find common ground.
In the event of a strike CUPE 79 will join library workers who have been walking the picket lines since March 18. They're also continuing to negotiate with the city to reach a new contract deal.
