Both sides reported progress in contract talks between employees and management at the Los Angeles Herald Examiner, and the union advised its members that it would let the contract deadline pass Wednesday night without calling a strike. Employees on Monday authorized the union to strike if the two sides could not settle the remaining differences over money. But a union memo to employees said: "Some progress has been made. If the progress continues, there will be another special meeting (of employees) and a vote before a strike is called. Such a vote cannot be held today." John McCade, chief operating executive at the Herald, said he expects a settlement shortly.