The Metropolitan Transportation Authority said Wednesday that no agreement has been reached with the unions to avoid a potential Long Island Rail Road strike as the sides continue to differ on the terms of the fourth year of a new labor agreement. At a news conference in Manhattan, the MTA said the two sides are continuing to negotiate, but have failed to reach an agreement. The main sticking point in the arguments is the fourth and final year of the contract, though both sides have agreed on the first three years. The MTA is offering a 3% raise in year four, while the unions are pushing for at least a 4.5% uptick, which was recommended by the Presidential Emergency Board. The MTA said it is willing to make up the difference through lump sum payments, but union leaders have called it unacceptable. "The difference between these two positions is not unbridgeable," said Gary Dellaverson, the MTA labor counsel. "It is not difficult to understand. It is describable simply in terms of money, and there are no longer any complexities that are involved between the parties, between us and the five unions."

MTA officials said they were hopeful that the sides could reach an agreement in the coming hours. Negotiations are expected to continue Thursday. If the sides don't reach an agreement, a strike will commence on 12:01 a.m. Saturday.