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The United Autoworkers said Saturday night that following months of negotiations with General Motors (GM - Get Report) , the contract would not be extended, averting any possible strike until 10 a.m. Sunday. The two groups failed to reach any agreement by their midnight deadline.

UAW Vice President Terry Dittes sent a letter to union members, said the UAW, that the union will not extend the current 2015 collective bargaining agreement, but will work without a contract "until a course of action is decided" by the UAW international executive board and the UAW-GM national council. 

"While we are fighting for better wages, affordable quality health care, and job security, GM refuses to put hard working Americans ahead of their record profits of $35 billion in North America over the last three years. We are united in our efforts to get an agreement our members and their families deserve," said the union in a statement.

The union and auto giant are negotiating over a variety of points, including pay, temporary workers, and health care costs, trying to stave off the auto industry's first major walkout in a decade.

"We continue to work hard on solutions to some very difficult challenges. We are prepared to negotiate around the clock because there are thousands of GM families and their communities - and many thousands more at our dealerships and suppliers - counting on us for their livelihood. Our goal remains on building a strong future for our employees and our business," said GM in a statement provided to TheStreet on Saturday evening.

The UAW, meanwhile, said in a letter to workers Saturday night that it's "made some progress" in the talks, but that significant issues remain.

"We still have many outstanding issues remaining, including significant differences between the parties on wages, health care benefits, temporary employees, job security and profit sharing. We will be working until tonight's deadline at 11:59 pm to reach a Tentative Agreement," said Dittes in the letter to the union members.

Dittes said that if a tentative agreement is not reached Saturday, the union will tell UAW hourly and salaried workers to "report to work tomorrow for their regular shifts, if any, and continue working under the same terms and conditions once the contracts expire."

The UAW-GM National Council has a meeting scheduled for 10 a.m. Sunday.